U.S. Energy Secretary Calls for More Nuclear Reactors Amid Challenges at Plant Vogtle

WAYNESBORO, Ga. (AP) — U.S. Energy Secretary Jennifer Granholm on Friday called for more nuclear reactors to be built in the United States and worldwide. However, the CEO of the Georgia utility that just finished the first two scratch-built American reactors in a generation at a cost of nearly $35 billion says his company isn't ready to pick up that baton.

Speaking in Waynesboro, Georgia, where Georgia Power Co. and three other utilities last month put a second new nuclear reactor into commercial operation, Granholm emphasized the need for increased nuclear capacity to reduce carbon emissions. She noted that the U.S. needs 98 more reactors with the capacity of units 3 and 4 at Plant Vogtle to meet electricity demands while cutting down on climate-changing carbon emissions. Each of the two new reactors can power 500,000 homes and businesses without releasing any carbon.

“It is now time for others to follow their lead to reach our goal of getting to net zero by 2050," Granholm said. "We have to at least triple our current nuclear capacity in this country.”

Despite the federal government's efforts to ease the risks of nuclear construction, the $11 billion in cost overruns at Plant Vogtle remain a significant deterrent for other utilities. Chris Womack, CEO of Southern Co., the Atlanta-based parent company of Georgia Power, expressed support for Granholm's vision but indicated that his company would not be building more reactors anytime soon.

“I think the federal government should provide a leadership role in facilitating and making that become a reality,” Womack said. “We’ve had a long experience, and we’re going to celebrate what we’ve gotten done here for a good little while.”

Celebration and Challenges at Plant Vogtle

Friday’s event capped a week of celebrations, with leaders proclaiming the reactors a success, despite being completed seven years behind schedule. Georgia Gov. Brian Kemp floated the idea of a fifth Vogtle reactor. While Kemp rarely discusses climate change, he has prioritized electric vehicles and acknowledged the necessity of carbon-free electricity for new industries.

The new Vogtle reactors are currently projected to cost Georgia Power and three other owners $31 billion, with an additional $3.7 billion paid by original contractor Westinghouse, bringing the total near $35 billion. Electric customers in Georgia have already contributed billions towards what may be the most expensive power plant ever. The federal government supported Vogtle by guaranteeing the repayment of $12 billion in loans, reducing borrowing costs.

On Wednesday, President Joe Biden’s administration held a meeting to promote nuclear power, announcing a working group to address challenges similar to those faced by Vogtle. The administration also promised that the military would commission reactors to help drive down costs and supported the development of smaller reactors to replace coal-fueled plants.

Granholm suggested that subsequent models of the Vogtle reactors could be built at lower costs, learning from the project's mistakes, such as starting construction before finalizing plans. “If you don’t vary the design, it gets 30% less expensive every time you build it,” Granholm said.

Future of Nuclear Power and Economic Considerations

In Michigan, Granholm announced up to $1.5 billion in loans to restart the Palisades nuclear power plant, which had been shut down in 2022 due to uncompetitive electricity prices. Much of the current domestic effort focuses on building smaller nuclear reactors using mass-produced components. Critics, however, question the feasibility of these reactors being built more cheaply and point out the ongoing issue of nuclear waste disposal, which lasts thousands of years.

While nuclear power offers a carbon-free solution, other forms of electricity generation, like solar power with battery storage, are initially much cheaper to build. In Georgia, almost every electric customer will contribute to the costs of Vogtle. Georgia Power owns 45.7% of the reactors, with smaller shares owned by Oglethorpe Power Corp., the Municipal Electric Authority of Georgia, and the city of Dalton. Utilities in Jacksonville, Florida, as well as in the Florida Panhandle and parts of Alabama, have also contracted to buy Vogtle’s power.

Regulators in December approved an additional 6% rate increase on Georgia Power’s 2.7 million customers to cover $7.56 billion in remaining costs at Vogtle, with the company absorbing $2.6 billion. This rate increase is expected to cost the typical residential customer an additional $8.97 per month in May, on top of a previous $5.42 increase when Unit 3 began operating.

Conclusion

Granholm's call for expanding nuclear power highlights the critical role of nuclear energy in achieving net-zero carbon emissions by 2050. However, the high costs and significant challenges faced by projects like Plant Vogtle underscore the need for careful planning, strong federal support, and innovative approaches to make nuclear power a viable solution for the future. As the nation moves towards cleaner energy, the lessons learned from Plant Vogtle will be crucial in shaping the path forward for nuclear energy development. Additionally, addressing the ongoing issues of nuclear waste disposal and cost overruns will be essential to gaining broader acceptance and implementing more widespread nuclear energy solutions.