The US government announced a ‘historic’ nuclear energy deal

The General Services Administration (GSA), which manages government buildings, just announced a major nuclear energy contract. It follows a series of nuclear energy deals struck by several big tech companies last year.

The 10-year, $840 million contract covers 10 million megawatt hours of electricity, which the General Services Administration says is equivalent to the annual electricity use of more than 1 million homes. The agency awarded the contract to Constellation, which operates the largest nuclear fleet in the United States, and recently announced a deal with Microsoft to restart the nuclear reactor at Three Mile Island. Constellation spokesman Paul Adams said nuclear power accounts for a large portion of GSA transactions, about 4 million megawatt hours..

Silicon Valley is getting more and more Shift to nuclear energy satisfy Electricity demand continues to rise From the Artificial Intelligence Information Center. The federal government is the largest consumer of energy in the United States, so this contract is a huge boon to the nuclear industry.

“It is frustrating… that nuclear power is excluded from sustainable energy procurement by many businesses and governments. No longer. This agreement is another strong example of how things are changing. Press release. “The U.S. government joins Microsoft and other entities in supporting continued investments in reliable nuclear power, which will allow Constellation to regain licenses and extend the life of these critical assets.”

Constellation says the company produces 10% of the country’s carbon-free, pollution-free energy. one Most of its output is nuclear energybut it also produces hydro, wind and solar power. It also generates electricity through gas-fired power plants, although the company has set a target of 100% carbon-free electricity by 2040, and the current figure is closer to 90%.

Constellation and the GSA declined to answer questions about whether the power included in the contract would come from sources other than nuclear power plants.. Overall, this is the largest energy purchase contract signed in GSA history.

“This historic purchase locks in a cost-competitive, reliable supply of nuclear energy,” GSA Administrator Robin Carnahan said in a statement. Press release. “We are showing how the federal government can work with major corporate clean energy buyers to stimulate new nuclear energy capacity and ensure reliable, affordable clean energy for everyone.”

The contract will allow Constellation to extend licenses for existing nuclear power plants and “invest in new equipment and technology” which will bring 135 megawatts of additional capacity. GSA agreed to purchase 2.4 million megawatt-hours of electricity from the new capacity over 10 years. In addition to the GSA building, the agreement extends to 13 other agencies, including the Departments of Veterans Affairs and Transportation, the Federal Bureau of Prisons, the National Park Service, the Social Security Administration and the U.S. Mint.

this GSA is framing As data centers drive up power demand and intensify competition for limited clean energy, the contract is a way to lock in more affordable prices:

For example, in the face of uncertainty about future electricity prices and growing power demands from data centers and artificial intelligence facilities, the contract keeps electricity costs fixed for 10 years while continuing to provide federal agencies with budget stability and protection from future price increases. influence.

Google, Yuan, Amazonand Microsoft Over the past year, all countries have signed high-profile nuclear energy deals. Last September, Microsoft and Constellation declare Plans to restart a shuttered reactor on Pennsylvania’s Three Mile Island, home to a nuclear power plant Worst Nuclear Energy Accident in American history.

The Biden administration has also made nuclear energy a key part of its plan to shift the U.S. away from fossil fuels and towards energy sources that do not contribute to climate change. Last October, the Department of Energy Announces $1.52 billion in loans Helping restart a decommissioned nuclear power plant in Hidden Township, Michigan. President-elect Trump Plan cancellation progress Trump’s campaign agenda is committed to clean energy, including efforts toSupport nuclear energy production”.