The US needs nuclear energy now, more than ever | Are permitting and regulations set up for rapid deployment?
Feb 25, 2025
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Maria Korsnick, President and CEO of the Nuclear Energy Institute, shares her expertise on the evolving landscape of nuclear energy in the U.S. She discusses the ambitious goals for nuclear capacity by 2050 and how large tech companies drive demand for reliable clean energy. Korsnick highlights the challenges and potential of small modular reactors and the vital role of tax credits in accelerating deployment. Furthermore, she explores the need for regulatory reform to foster growth and the importance of collaboration between the nuclear and tech sectors.
The Biden administration’s $840 million energy contract reinforces the critical role of nuclear power in meeting future U.S. energy demands.
Growing engagement from major tech companies indicates a significant shift in perception, recognizing nuclear energy as a reliable source for their clean energy goals.
Deep dives
The Urgency of Nuclear Energy
The current energy landscape in the U.S. highlights an increasing need for nuclear power, especially following significant government contracts aimed at bolstering the industry. The Biden administration's $840 million contract with Constellation demonstrates governmental support for enhancing nuclear capacity. However, the future of commercial nuclear capability, particularly small modular reactors (SMRs), faces challenges such as lengthy permitting processes and the preparedness of the underlying technology. Despite these hurdles, there is a growing consensus among stakeholders that nuclear energy must play a crucial role in achieving clean energy goals.
Tech Sector Investment in Nuclear
Recent trends indicate that major technology companies, like Amazon and Microsoft, are becoming actively engaged in nuclear energy, driven by their ambitious clean energy targets. These companies have shown a willingness to invest in nuclear projects, such as the long-term power purchase agreement for the restart of Unit 1 at Three Mile Island. This shift reflects a significant change in attitudes from just a few years ago, where tech companies were hesitant to fully embrace nuclear energy. Currently, the tech sector sees added value in nuclear as a reliable and stable energy source necessary for powering data centers.
Challenges of First-of-a-Kind Projects
The initial nuclear projects always face significant financial and operational risks, leading to skepticism about timelines and budgets. The notion of 'first of a kind' suggests that the first reactors built will likely exceed expectations regarding costs and schedules due to the complex regulatory landscape. Historical data indicates that as additional reactors are constructed, costs can decrease up to 50% from first to fourth units, emphasizing the learning curve associated with these building processes. Understanding risk allocation and financial structure is key to encouraging investment and execution of these early projects, ensuring future growth in the nuclear sector.
Perceptions and Community Engagement
Public perception of nuclear energy is shifting positively, as demonstrated by communities actively vying for new nuclear plants to replace retiring fossil fuel facilities. The educational efforts surrounding the benefits of nuclear energy have made it more acceptable to local populations, recognizing its role in job creation and stable energy supply. There is a growing movement to repurpose former coal plant job forces for nuclear plant employment, facilitating community support. This optimistic shift signals a new era for nuclear energy as communities increasingly view it as an asset rather than a liability.
Former President Biden's final days in office involved signing an US$840 million energy contract with Constellation - a statement of intent for the US’s largest nuclear supplier. Since then, what’s changed with nuclear policy?
To find out, host Sylvia Leyva Martinez – a principal analyst at Wood Mackenzie – welcomes Maria Korsnick, President and CEO of the Nuclear Energy Institute to the show.
Maria says that despite uncertainties, there's no reason large reactors couldn't achieve costs as low as US$60 to US$80 per megawatt-hour. Utilities are eyeing an additional 100GW of nuclear power by 2050 – driven in large part by demand from data centers and the tech giants. So how is the industry going to meet this demand? New technology? More permitting reform? More investment?
Join us as Maria reveals the industry's strategic momentum and the pivotal role nuclear plays in providing round-the-clock, highly reliable and cleaner energy. Engagement with both state and tech sectors could shift nuclear from perceived outsider to mainstream option.
Expect in-depth analysis on how the US is positioning itself to meet skyrocketing energy demands, especially from the ever-expanding tech sector.
Follow the show wherever you get podcasts, and we’ll be back in two weeks time, Tuesday at 7am.