Major Nuclear Energy Contract Announced by General Services Administration
The General Services Administration (GSA), which manages government buildings, has recently announced a significant 10-year nuclear energy contract. This announcement comes on the heels of several major tech companies making notable nuclear energy deals last year.
Contract Details
- The $840 million contract is for 10 million megawatt-hours of electricity.
- According to the GSA, this amount is equivalent to what’s needed for more than 1 million homes annually.
- The agency awarded the contract to Constellation, which operates the nation’s largest nuclear fleet and has recently announced an agreement with Microsoft to restart a nuclear reactor at Three Mile Island.
Nuclear Energy in the Contract
- Nuclear energy makes up approximately 4 million megawatt-hours of the GSA deal, according to Constellation spokesperson Paul Adams.
- This significant portion of nuclear energy is expected to contribute significantly to the nation’s clean energy mix.
Growing Demand for Nuclear Energy
- Silicon Valley companies are increasingly turning to nuclear energy to meet rising electricity demand from AI data centers.
- The federal government is the nation’s largest energy consumer, making this contract a substantial boon to the nuclear industry.
- Constellation generates 10 percent of the nation’s carbon pollution-free energy, with the majority coming from nuclear power plants.
Constellation’s Commitment to Clean Energy
- Constellation has set a goal of reaching 100 percent carbon-free electricity by 2040 compared to close to 90 percent today.
- The company also produces hydro, wind, and solar power in addition to nuclear energy.
- While the contract does not specify how much electricity will come from each source aside from nuclear power plants, it is clear that Constellation is committed to increasing its reliance on clean energy.
GSA Administrator’s Statement
- The GSA administrator, Robin Carnahan, stated that this historic procurement "locks in a cost-competitive, reliable supply of nuclear energy."
- She emphasized the importance of joining major corporate clean energy buyers in spurring new nuclear energy capacity and ensuring a reliable, affordable supply of clean energy for everyone.
Contract Benefits
- The contract will allow Constellation to extend licenses for existing nuclear power plants as well as invest in new equipment and technology.
- This should result in 135 megawatts of additional capacity over the next decade.
- The GSA has agreed to purchase 2.4 million megawatt-hours of electricity from this added capacity over 10 years.
Broader Impact
- Outside of GSA buildings, the deal also extends to 13 other agencies, including the departments of Veterans Affairs and Transportation as well as the Federal Bureau of Prisons, the National Park Service, the Social Security Administration, and the US Mint.
- The contract is framed by the GSA as a way to lock in more affordable prices as data centers drive up electricity demand and increase competition for limited clean energy sources.
- This provides federal agencies with budgetary stability and protections from future price increases by keeping their electricity costs fixed for 10 years.
Nuclear Energy Deals in Silicon Valley
- Google, Meta, Amazon, and Microsoft have all inked notable nuclear energy deals over the past year.
- In September of last year, Microsoft and Constellation announced a plan to restart a shuttered reactor at Three Mile Island in Pennsylvania.
- The Biden administration has also made nuclear energy a key part of its plan to transition the US away from fossil fuels to energy sources that don’t cause climate change.
Government Support for Nuclear Energy
- The Department of Energy recently announced a $1.52 billion loan to help restart a retired nuclear generating station in Covert Township, Michigan.
- The Trump campaign agenda included efforts to ‘support nuclear energy production.’
- While President-elect Donald Trump plans to undo progress made toward clean energy, it’s clear that the government is committed to investing in reliable and sustainable energy sources.
