Photo credit: www.cnbc.com
Cooling towers and reactors at the nuclear-powered Vogtle Electric Generating Plant in Waynesboro, Georgia, are a testament to a complex narrative surrounding the future of nuclear energy in the United States. Once a beacon for a potential “nuclear renaissance,” the expansion of two power plants in Georgia and South Carolina was marked by extensive delays and significant budget overruns associated with Westinghouse Electric Co.’s AP1000 reactor design, which ultimately led to the company’s bankruptcy in 2017.
The rise and fall of Westinghouse represents a significant chapter in the nuclear industry, as the company was pivotal in launching nuclear power in the U.S. back in 1957 with the first commercial reactor in Shippingport, Pennsylvania. The recent operational launch of two new AP1000 reactors at Plant Vogtle, which began functioning in 2023 and 2024, transformed it into the largest power generation site in the nation and marked the advent of a new operational nuclear reactor design after a three-decade hiatus. Yet, these reactors faced a staggering seven-year delay and accumulated $18 billion in cost overruns.
Following Westinghouse’s financial downfall, utilities in South Carolina halted the construction of two reactors at the V.C. Summer plant in 2017, having already invested $9 billion without completion. However, a pivot in the energy landscape is emerging, driven by the tech sector’s increasing demand for reliable, low-carbon electricity, particularly in competition with China. Westinghouse, having restructured and emerged from bankruptcy in 2018, was acquired by Cameco and Brookfield Asset Management in 2023, enhancing its capabilities.
Recognizing a revived appetite for nuclear energy, the state of South Carolina is now seizing an opportunity to complete its long-stalled V.C. Summer reactors. Santee Cooper, the state’s public utility, is actively seeking a buyer to finish the construction, citing the rising demand from data centers as a motivating factor.
“We see a tremendous opportunity with V.C. Summer,” expressed Dan Lipman, Westinghouse’s president of energy systems, emphasizing the importance and feasibility of completing the project. The anticipated increase in energy needs aligns closely with advancements in artificial intelligence and data processing.
Technology Drive for Nuclear Power
For the last quarter-century, the U.S. has attempted to revitalize nuclear energy, yet only the two reactors in Georgia have been successfully constructed amid variables ranging from political support to the fluctuating natural gas market, which complicated the competitive landscape. The nuclear industry faced a formidable challenge as low natural gas prices diminished the economic viability of old reactors, causing operational closures.
John Kotek, of the Nuclear Energy Institute, notes that a shift has occurred in recent years, with the tech sector’s insatiable demand for power fostering a renewed interest in nuclear solutions. Recent investments have not only focused on the restart of dormant reactors but also on exploring the potential of smaller, next-generation modular reactors, which could redefine the energy landscape if developed economically.
Significant developments in this domain include Constellation Energy’s plans to restart the troubled Three Mile Island reactor by 2028 and investments by major tech firms such as Alphabet and Amazon in small nuclear facilities. Meta Platforms has even proposed plans for up to 4 gigawatts of nuclear energy to support their burgeoning data center operations.
Despite a current emphasis on small reactors, Lipman highlighted that the previously underestimated demand from data centers is now reigniting interest in larger AP1000 reactors due to their scale and efficiency. Currently, operational small reactors are absent from the U.S., and the feasibility of restarting shuttered plants is limited.
The Scale of Energy Demand
The energy demand posed by tech giants like Meta suggests a massive undertaking, with one company’s needs approaching the total generating capacity of the Vogtle plant—enough energy to supply over two million homes and businesses. Leaders in the nuclear sector, including Georgia’s Governor Brian Kemp, have emphasized the need for more reactors to meet surging energy demands, with Southern Company CEO Chris Womack advocating for an additional 10 gigawatts of nuclear power.
As the industry evaluates its future, considerable scrutiny and caution will accompany any new orders for AP1000 reactors following the lessons learned from previous projects. Lipman indicated that issues related to incomplete designs and unrefined supply chains have since been addressed, positioning the industry better for future success.
Reflecting on Past Challenges
Despite this optimism, skepticism surrounding new AP1000 projects remains due to the hardships faced in the South. Westinghouse’s earlier projects encountered significant hurdles mainly because the reactor designs were not finalized prior to groundbreaking. Lipman believes that now, with established supply chains and fully complete designs, Westinghouse is capable of delivering streamlined projects at lower costs.
The Department of Energy has posited that future builds will be cheaper as they won’t carry the same financial burdens experienced with initial projects. A combination of federal support initiatives, including those outlined in the Inflation Reduction Act, promises to further alleviate financial strains on forthcoming nuclear developments.
Policy Implications and Future Outlook
Under previous and current administrations, support for nuclear has been a variable topic. While President Donald Trump has shown support for nuclear energy, the industry is still uncertain about the future availability of vital funding mechanisms through the Department of Energy. Historical executive orders and policy shifts aimed at bolstering nuclear energy’s viability have faced challenges amid budgetary constraints and regulatory obstacles.
Industry forecasts indicate that if large-scale nuclear deployment is to materialize in the U.S., legislative and investment frameworks must adapt rapidly to the changing energy landscape. As the focus on energy independence and reliability intensifies, the quest for a sustainable and economically viable nuclear future remains a top priority for policymakers and industry leaders alike.
Source
www.cnbc.com