CFC Solutions Cast

Alisha Pinto: 00:08

Welcome to Solutions Cast. I'm Alicia Pinto, CFC's senior energy industry analyst. Today, we're going nuclear. Now if that sounds alarming, don't worry, nothing drastic is gonna happen on today's video. But since nuclear energy has been dominating the headlines recently, I'm going to share some updates on the state of the sector.

Alisha Pinto: 00:31

Let's start with the most significant update. Nuclear energy is making a comeback. After nearly a decade of limited activity, momentum is now building for a nuclear energy revival, from rural electric cooperatives to global tech giants. Over the past year, the industry has seen a surge of major developments, including the recommissioning of dormant power plants and new power-purchase agreements with companies like Meta, Google and Microsoft. In Michigan, Holtec International is working to restart the Palisades Power plant, a 800 megawatt facility that was previously shut down in May 2022.

Alisha Pinto: 01:13

The electricity generated from the plant will be delivered to customers like Wolverine Power Cooperative and Hoosier Energy. In Pennsylvania, Constellation Energy is planning to restart the 3 Mile Island's Unit 1 nuclear reactor with Microsoft securing a long-term agreement to power its data centers. This renewed interest in nuclear energy is being driven in large part by the rise of artificial intelligence and the growing demand for data centers. These facilities are energy-intensive enterprises that require massive amounts of reliable electricity. At the same time, many tech companies and data center operators are actively pursuing carbon-free electricity to meet their sustainability goals.

Alisha Pinto: 02:02

Nuclear energy is uniquely positioned to meet both these needs. With this in mind, it's no surprise that major tech firms are now investing in advanced nuclear technologies like small modular reactors. The renewed interest in nuclear isn't limited to the private sector. The Tennessee Valley Authority recently announced it submitted a construction permit to the U.S. Nuclear Regulatory Commission for a small modular nuclear reactor. TVA serves co-ops across The U.S. South in Tennessee, Kentucky, Alabama and Mississippi.

Alisha Pinto: 02:40

Now, let's put these developments into some context. Today, there are 54 commercially operating nuclear power plants across 28 states housing a total of 94 reactors. Nuclear energy now accounts for more than 18% of the U.S. generation mix. The most recent reactor to come online is the Vogel Unit 4 plant in Georgia, which supplies power to electric cooperative members through Oglethorpe Power. Nuclear energy is widely regarded as a stable and reliable source of electricity capable of operating nearly twenty-four hours a day.

Alisha Pinto: 03:22

Its capacity factor, which is a measure of how often a plant runs at full power, is an impressive 92.3%. That's significantly higher than natural gas at 55%. At the same time, it's important to recognize that nuclear energy does not enjoy universal support among all stakeholders. Some people are fearful of nuclear energy because they associate it with catastrophic accidents like Chernobyl and Fukushima. There are also concerns about nuclear waste disposal and the historical associations with nuclear weapons.

Alisha Pinto: 04:04

There are also supply chain hurdles to overcome. The U.S. still imports 99% of the uranium it uses. In 2024, the top suppliers were Canada, France, and the United Kingdom. The current tariff situation has made this dependency on imports more challenging. The good news is domestic production is beginning to ramp up, supported by both federal funding and private investments from the tech sector. Recently, Uranium Energy Corporation and Radiant Energy announced a new partnership to strengthen the U.S. nuclear fuel supply chain, an important step towards enhancing national energy security.

Alisha Pinto: 04:50

Policy is also playing a critical role in shaping the future of nuclear energy through funding and support for nuclear technology, deployment of SMRs, supply chain development and domestic uranium production. Despite this momentum, there are several challenges that remain. High upfront investment costs and long timelines for permitting, construction and commercial operation continue to slow progress. The long term growth of nuclear energy will depend on how quickly and efficiently it can scale to meet the accelerating demand for clean, reliable electricity. CFC will be watching these developments closely in the coming months.

Alisha Pinto: 05:35

That's all for today. Thank you for joining us for this edition of Solutionscast Industry Insights. CFC members can learn more about the latest industry and technology trends by visiting the Solutions website under the Energy and Technology page.