US Government Announces Historic Nuclear Energy Deal

The General Services Administration Awards $840 Million Nuclear Energy Contract

A Major Breakthrough for the Nuclear Industry

The General Services Administration (GSA), which oversees government buildings, has announced a significant nuclear energy contract. This development comes on the heels of several major tech companies making notable nuclear energy deals last year.

Key Details of the Contract

• The 10-year, $840 million contract is for 10 million megawatt-hours of electricity.
• According to Constellation spokesperson Paul Adams, nuclear energy makes up approximately 4 million megawatt-hours of the deal.
• This contract will provide a significant portion of the nation’s single largest energy consumer, the federal government, with a reliable and affordable source of clean energy.

The Importance of Nuclear Energy in Meeting Electricity Demand

Silicon Valley is increasingly turning to nuclear energy to satiate the growing electricity demand from AI data centers. As the world becomes more reliant on technology, the need for sustainable energy sources has never been greater.

How Does This Contract Impact the Nuclear Industry?

This contract represents a significant milestone for the nuclear industry and serves as a powerful example of how things have changed in recent years. The exclusion of nuclear energy from many corporate and government sustainable energy procurements is no longer the norm.

Quotes from Key Figures

• "This agreement is another powerful example of how things have changed," said Joe Dominguez, Constellation president and CEO. "Frustratingly… nuclear energy was excluded from many corporate and government sustainable energy procurements. Not anymore."
• "The United States government joins Microsoft and other entities to support continued investment in reliable nuclear energy that will allow Constellation to relicense and extend the lives of these critical assets," added Dominguez.
• "This historic procurement locks in a cost-competitive, reliable supply of nuclear energy," said GSA administrator Robin Carnahan. "We’re demonstrating how the federal government can join major corporate clean energy buyers in spurring new nuclear energy capacity and ensuring a reliable, affordable supply of clean energy for everyone."

The Role of Constellation in This Contract

Constellation operates the nation’s largest nuclear fleet and has made significant strides in recent years to expand its offerings. The company has set a goal of reaching 100 percent carbon-free electricity by 2040.

How Will the Contract Be Implemented?

The contract will allow Constellation to extend licenses for existing nuclear power plants as well as invest in new equipment and technology, resulting in an additional 135 megawatts of capacity. This added capacity is expected to provide 2.4 million megawatt-hours of electricity over the next 10 years.

The Broader Impact of the Contract

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. This contract provides federal agencies with budgetary stability and protections from future price increases by keeping their electricity costs fixed for 10 years.

The Future of Nuclear Energy in the United States

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. With this contract, the federal government is joining Microsoft and other entities to support continued investment in reliable nuclear energy.