Major Nuclear Energy Contract Announced by General Services Administration (GSA)
The General Services Administration (GSA), which is responsible for managing government buildings and facilities, has recently announced a significant nuclear energy contract. This announcement comes on the heels of several major tech companies making notable deals in the nuclear energy sector last year.
Details of the Contract
The 10-year, $840 million contract is for 10 million megawatt-hours of electricity, which is equivalent to what’s needed for more than 1 million homes annually. The GSA has awarded this contract to Constellation, a company that 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 Makes Up a Significant Portion of the Contract
According to Constellation spokesperson Paul Adams, nuclear energy makes up about 4 million megawatt-hours of the contract. This is a significant portion, considering that Silicon Valley companies are increasingly turning to nuclear energy to satisfy electricity demands from AI data centers.
Federal Government’s Role in Promoting Nuclear Energy
The federal government is the nation’s single largest energy consumer, making this contract a big boon to the nuclear industry. The GSA is framing this contract as a way to lock in more affordable prices as data centers drive up electricity demand and increase competition for limited clean energy sources.
Benefits of the Contract
This contract will allow Constellation to extend licenses for existing nuclear power plants as well as invest in new equipment and technology that should result in 135 megawatts of additional capacity. The GSA has agreed to purchase 2.4 million megawatt-hours of electricity from this added capacity over 10 years.
Impact on the Nuclear Industry
The contract will have a positive impact on the nuclear industry, which is struggling to compete with other forms of renewable energy. Constellation’s president and CEO, Joe Dominguez, said in a press release that this agreement is "another powerful example of how things have changed" and that the United States government is joining other entities to support continued investment in reliable nuclear energy.
Constellation’s Commitment to Nuclear Energy
Constellation generates 10 percent of the nation’s carbon pollution-free energy. A majority of its output is nuclear energy, but it also produces hydro, wind, and solar power. The company has set a goal of reaching 100 percent carbon-free electricity by 2040 compared to close to 90 percent today.
GSA Administrator Robin Carnahan’s Statement
The GSA administrator, Robin Carnahan, said in a press release that this historic procurement locks in a cost-competitive, reliable supply of nuclear energy. She added that the federal government is demonstrating how it can join major corporate clean energy buyers in spurring new nuclear energy capacity and ensuring a reliable, affordable supply of clean energy for everyone.
Other Agencies Involved
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.
Comparison with Other Energy Deals
This contract is notable in comparison to other energy deals made by major tech companies last year. Google, Meta, Amazon, and Microsoft have all inked splashy 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.
Biden Administration’s Plan for Nuclear Energy
The Biden administration has 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. Last October, the Department of Energy announced a $1.52 billion loan to help restart a retired nuclear generating station in Covert Township, Michigan.
Trump Administration’s Plan for Nuclear Energy
While President-elect Donald Trump plans to undo progress made toward clean energy, his campaign agenda included efforts to support nuclear energy production.
