DOE Provides $1 Billion Loan to Restart Three Mile Island Reactor
The U.S. Department of Energy (DOE) has approved a $1 billion loan to Constellation Energy to restart the Three Mile Island Unit 1 nuclear reactor in Pennsylvania. The reactor, which has been offline since 2019, is expected to resume operations by 2028 following refurbishment.
The funding comes through DOE’s Loan Programs Office (LPO) under the Energy Dominance Financing Program, aimed at supporting the restart and development of existing nuclear power plants. Officials say the loan will help ensure reliable, low-carbon electricity while safeguarding taxpayer interests, as Constellation Energy guarantees repayment.
The restart project is supported by a 20-year Power Purchase Agreement with Microsoft, which will purchase the electricity generated by the plant. Constellation Energy estimates the total cost of the refurbishment at $1.6 billion. Analysts note that while this represents a premium compared to wind and solar, nuclear offers stable baseload power that meets the high energy demands of data centers.
The revived reactor is Unit 1, not the Unit 2 that experienced a partial meltdown in 1979. The DOE emphasizes that the restart aligns with broader U.S. energy goals, including grid reliability and carbon reduction.
Source: techcrunch.com
