That’s exactly what Meta Platforms, Inc. is doing as they have recently begun soliciting proposals from energy developers to build up to 4 gigawatts of new generating capacity. This promise comes at an important time. By 2029, the United States is projected to experience electricity demand increase almost 16%. Data centers are some of the largest electricity consumers. By the end of the decade, their use might increase four times over, resulting in a critical need for new energy inventions.
In another positive sign, Microsoft is partnering with Constellation Energy. Together, they are working to restart a reactor at the infamous Three Mile Island plant. By utilizing existing infrastructure we can meet the growing energy demand efficiently and sustainably, the project would help do just that. Forecasts for nuclear power projects over the next five years show huge swings in bubbles bursting. Industry experts are raising red flags about the obstacles yet to come.
The market for new nuclear projects seems bright, since they can be designed and brought online in about 18 months on average. Analysts are concerned that the big nuclear plants expected to come online in roughly a decade might face financial challenges. This risk Cynthia explains would happen if nuclear power subsidies are rolled back. Recently, the House Ways and Means Committee published its draft of a reconciliation bill that proposes eliminating tax credits for nuclear power that were previously established under the Inflation Reduction Act. Today, nuclear power plants receive lucrative tax incentives worth up to $15 per megawatt-hour that make or break the viability of projects.
Regardless of these confusing timelines, only a handful of locations are even eligible for new reactors. Fewer than a dozen places have both operating licenses and early site permits from the Nuclear Regulatory Commission. Further, each of these sites has the capacity to host multiple reactors, each of which can produce over 1 gigawatt of power. This lack of resource availability further emphasizes the need for strategic, smart planning and development in growing the nuclear energy industry.
This young startup in the nuclear energy field recently announced the completion of its own successful Series A funding round. It drew fund commitments from prominent investors such as CIV, Goldcrest Capital, MCJ Collective, True Ventures, and Wonder Ventures. The company aims to leverage inexpensive nuclear technology to meet growing energy demands and contribute to a sustainable energy future.
Tim De Chant is a senior climate reporter for TechCrunch. In 2018, he was a Knight Science Journalism Fellow at MIT, where he focused on making the case for the key role of nuclear power in our rapidly changing energy landscape. He emphasizes the role of new technologies as key to delivering those solutions. Yet, the industry still faces regulatory and economic hurdles before its full potential can be realized.
