Breaking News: GSA Awards Historic Nuclear Energy Contract
The General Services Administration (GSA), which oversees the management of government buildings, has just announced a groundbreaking nuclear energy contract. This major development comes on the heels of several big tech companies making significant nuclear energy deals last year.
10-Year, $840 Million Contract for 10 Million Megawatt-Hours of Electricity
The GSA has awarded the contract to Constellation, which operates the nation’s largest nuclear fleet and recently announced an agreement with Microsoft to restart a nuclear reactor at Three Mile Island. The 10-year contract is valued at $840 million and covers 10 million megawatt-hours of electricity, equivalent to meeting the needs of over 1 million homes annually.
Nuclear Energy Takes Center Stage
According to Constellation spokesperson Paul Adams, about 4 million megawatt-hours of electricity under this contract will come from nuclear energy. This significant portion is a testament to the growing importance of nuclear energy in addressing the nation’s energy demands. Silicon Valley has been increasingly turning to nuclear energy to satiate the rising electricity demand from AI data centers.
A Boon for the Nuclear Industry
The federal government is the nation’s largest energy consumer, making this contract a significant victory for the nuclear industry. As the Biden administration continues its efforts to transition the US away from fossil fuels and towards cleaner energy sources, contracts like this one play a crucial role in driving investment in reliable nuclear energy.
A New Era for Nuclear Energy Procurement
This historic procurement marks a turning point in how corporations and government entities approach sustainable energy procurements. Gone are the days when nuclear energy was excluded from many of these deals. As Joe Dominguez, Constellation president and CEO, stated in a press release: "Frustratingly… nuclear energy was excluded from many corporate and government sustainable energy procurements. Not anymore."
Constellation’s Commitment to Carbon-Free Energy
Constellation generates 10 percent of the nation’s carbon pollution-free energy, with a majority of its output coming from nuclear power plants. The company also produces hydro, wind, and solar power, as well as electricity from gas-fired power plants. However, Constellation has set a goal of reaching 100 percent carbon-free electricity by 2040, up from close to 90 percent today.
Contract Details
The GSA declined to provide details on how much of the electricity included in the contract will come from each source aside from nuclear power plants. However, the agency did confirm that Constellation will be able to extend licenses for existing nuclear power plants as well as invest in new equipment and technology to result in an additional 135 megawatts of capacity.
A Reliable Supply of Clean Energy
The GSA has framed this contract as a way to lock in more affordable prices, providing budgetary stability and protection from future price increases. As data centers drive up electricity demand and competition for limited clean energy sources intensifies, this contract will continue to bolster the domestic nuclear industry.
Silicon Valley’s Nuclear Ambitions
Google, Meta, Amazon, and Microsoft have all made significant nuclear energy deals over the past year. In September of last year, Microsoft and Constellation announced a plan to restart a shuttered reactor at Three Mile Island in Pennsylvania, the site of the worst nuclear energy accident in US history.
The Biden Administration’s Nuclear Energy Strategy
The Biden administration has identified nuclear energy as a key component of its plan to transition the US away from fossil fuels and towards cleaner energy sources. Last October, the Department of Energy announced a $1.52 billion loan to help restart a retired nuclear generating station in Covert Township, Michigan.
Conclusion
This historic procurement contract marks a significant milestone for the nuclear industry, demonstrating how corporations and government entities are increasingly turning to reliable nuclear energy to meet their growing electricity demands. As the nation continues its transition towards cleaner energy sources, contracts like this one will play a vital role in driving investment in nuclear energy and ensuring a reliable supply of clean energy for generations to come.
Appendix
- Nuclear Energy Statistics:
- 10 million megawatt-hours of electricity
- Equivalent to meeting the needs of over 1 million homes annually
- $840 million contract value
- Constellation’s Nuclear Fleet:
- Operates the nation’s largest nuclear fleet
- Generates 10 percent of the nation’s carbon pollution-free energy
- Majority output from nuclear power plants
- Biden Administration’s Nuclear Energy Strategy:
- Identified nuclear energy as a key component of its plan to transition the US away from fossil fuels and towards cleaner energy sources
- $1.52 billion loan announced to help restart a retired nuclear generating station in Covert Township, Michigan