The U.S. Department of Energy has announced a $1 billion loan to Constellation Energy to support the refurbishment of a nuclear reactor at Three Mile Island. The reactor, which was previously idled in 2019, is expected to be reactivated by 2028.
Microsoft has committed to purchasing all the electricity generated by the 835-megawatt power plant for a duration of 20 years, post its anticipated reopening. Constellation Energy estimates the total cost of the project at $1.6 billion and is working towards completing the refurbishment within the specified timeline.
While the financial terms of Microsoft’s agreement with Constellation remain undisclosed, industry analysts suggest that the tech company might be paying approximately $110 to $115 per megawatt-hour over the agreed-upon 20-year period. This represents a premium compared to alternative renewable energy sources like wind, solar, and geothermal power.
The reactor scheduled for reactivation is not the infamous Unit 2 responsible for the 1979 meltdown, but rather Unit 1, which began operations in 1974 and was decommissioned in 2019 due to cost-related factors amidst the natural gas market dynamics.
Source: TechCrunch