"The Trump administration announced Tuesday it would provide Constellation Energy with a $1 billion loan to restart a nuclear reactor at Three Mile Island. The energy company said last year it would reopen the reactor, which had been shuttered since 2019, after Microsoft committed to purchasing all the electricity from the 835 megawatt power plant for two decades. Constellation estimated the project would cost $1.6 billion, and it expects to complete the refurbishment in 2028."
"Analysts at Jefferies have estimated the tech company might be paying about $110 to $115 per megawatt-hour over 20 years of the deal. That's cheaper than a brand new nuclear power plant would cost, but it's a hefty premium over wind, solar, and geothermal, according to a comparison of energy costs from Lazard. Even wind and solar projects outfitted with utility-scale batteries to enable 24/7 power are cheaper."
"The debt facility is being made through the Department of Energy's Loan Programs Office (LPO), which was formed under the Energy Policy Act of 2005 to foster the growth of clean energy technologies. The LPO is most famous for its loan to Solyndra, a U.S. solar startup that went belly-up during the Great Recession. Overall, though, experts consider the LPO a success, with a default rate of 3.3% after recoveries. Tesla, for instance, received a $465 million loan under the program"
Constellation Energy plans to reopen Three Mile Island Unit 1 with a $1.6 billion refurbishment expected to finish in 2028 and backed by a $1 billion loan. Microsoft committed to buy all electricity from the 835-megawatt plant for 20 years. Jefferies analysts estimate Microsoft may pay about $110–$115 per megawatt-hour. That price is lower than building a new nuclear plant but substantially higher than wind, solar, or geothermal, including projects with utility-scale batteries. Unit 1 was commissioned in 1974 and closed in 2019 after falling profitability from cheap natural gas. The loan comes through the Department of Energy Loan Programs Office, which has a 3.3% default rate after recoveries.
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