The U.S. announced a plan to dramatically expand nuclear power during the next few decades, as electricity demands escalate.
Why it matters: The U.S. faces an increasing electricity demand amid the expansion of data centers used for artificial intelligence, growing use of electric vehicles, building of new manufacturing centers and other trends.
- The announcement comes during the COP29 climate summit in Baku, Azerbaijan, and at a moment when the U.S. and some other nations are aiming to triple nuclear energy capacity by 2050.
Yes, but: The framework released Tuesday wouldn't require major policy changes. But it also does not provide funding, and would presumably rely on Congress and incoming Trump administration to carry it out.
Nuclear power is one area of energy policy that has bipartisan support, and may see President-elect Trump move forward on moves that boost this sector.
Zoom in: The new "framework" for expanding nuclear power relies on more than 30 existing authorities the government has to incentivize this zero carbon emitting source of power, along with steps private industry can take.
- The goals for nuclear expansion contained in the framework are to deploy 15 gigawatts of nuclear by 2035 (operating or under construction), and 15 gigawatts per year after that by 2040.
- The total expansion goal would be to arrive at 200 gigawatts of new nuclear power by 2050.
- The new plants would not have to all be large nuclear stations like the expensive ones that U.S. has largely stopped building, but instead could include "large, small-modular, and microreactors," the framework states.
The intrigue: The new framework grows out of discussions taking place at the Department of Energy, White House, State Department and other parts of the federal government, along with industry players.
- A flurry of nuclear deals have been announced in the U.S. in recent months in order to power data centers. They include a deal between Microsoft and Constellation Energy to restart the Three Mile Island nuclear power station in Pennsylvania.
- Google, Amazon and other players in the AI space are also looking to cut nuclear deals as a way to have a source of reliable and carbon-free power.
The bottom line: The future of nuclear power — including next generation reactor designs — appears to be bright, assuming technical and regulatory challenges can be overcome.
