DOE Approves $1 Billion Loan for Three Mile Island Reactor Restart
On Tuesday, the Department of Energy (DOE) announced it will provide Constellation Energy with around $1 billion to help restart a nuclear reactor at Three Mile Island in Pennsylvania.
The Unit 1 reactor was taken offline in 2019, but it hasn’t been fully decommissioned yet. Constellation Energy is currently working towards reviving it, with plans to have it operational under a new name by 2027.
This funding will come from the DOE’s Loan Program Office, overseen by Secretary of Energy Chris Wright. He mentioned in a statement last week that the focus will mainly be on backing nuclear projects initiated during the Trump administration.
“One of the biggest challenges for Americans is the cost of energy,” Wright remarked. “We aim to enhance our power generation capacity to curb rising prices and boost our manufacturing sector.” He also noted the importance of staying competitive in the AI sector.
Wright indicated that the reactor was shut down prematurely and that bringing it back would add nearly 1 gigawatt of dependable power to the grid. Constellation’s financial backing is expected to provide extra assurance to taxpayers. The DOE anticipates that the reactor will be operational by 2027 and will require about 600 to 700 workers to restart it.
The agency has also issued an emergency directive aimed at keeping coal-fired plants operational, aligning nuclear energy development with the former president’s goals. There are concerns about potential energy crises; a report released in July warned that rolling blackouts could increase significantly by 2030 if reliable energy sources are phased out without proper replacements.
Wright pointed out that the current Biden administration has plans to shut down an additional 100 gigawatts of reliable energy generation, primarily from coal and natural gas. “This is exactly what America needs,” he stated, indicating the DOE’s ongoing quest to expand reliable energy production.
Despite Biden’s administration actively promoting renewable energy sources like wind and solar through various subsidies, the previous administration had emphasized the importance of traditional energy sources, including coal and nuclear energy.
According to the Energy Information Administration, rising energy demand—driven in part by renewed domestic manufacturing and increasing electrification—will necessitate an expansion of energy infrastructure.
Greg Beard, a senior adviser at the LPO, mentioned on Tuesday that the agency is looking into opportunities to restart other nuclear facilities as well. “We support projects that can make energy more affordable and secure,” he noted.
Constellation is focused on getting its reactor operational, with President and CEO Joe Dominguez discussing the impact of the closure of Unit 1, suggesting it reflects more than a decade’s worth of energy policies that neglected the reliability of nuclear energy.
Beard suggested that while Constellation could have likely moved forward without the DOE’s loan, this financial support would make energy more affordable for consumers.
PJM operates the grid affecting parts of 13 states and D.C., and it has faced scrutiny as ratepayers contend with rising utility costs amid political efforts to shift accountability to grid operators.
“The Trump administration’s focus is on safely reviving America’s nuclear industry,” Wright mentioned, emphasizing that the Nuclear Regulatory Commission plays a crucial role in maintaining the safety of nuclear initiatives. “We aim to reduce bureaucratic hurdles and concentrate on key safety concerns,” he added.
