US plan to triple nuclear energy capacity by 2050 faces financial concerns

The Biden administration announced a new energy initiative to expand U.S. nuclear capacity to 200 gigawatts by 2050. That’s a 200% increase over 2020 levels, with enough power to meet the electricity needs of up to 170 million homes. The plan includes building new reactors, renewing licenses for older plants, and restarting some retired facilities, though questions remain about the potential costs and timelines of these projects.

“Expanding domestic nuclear energy production has a key role to play in helping to avoid the worst impacts of climate change by enabling the nation to achieve a net-zero greenhouse gas (GHG) emission economy no later than 2050,” the White House said in a statement. “Nuclear power delivers safe, clean, reliable, and affordable electricity to communities across the nation.”

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Building new reactors can be a lengthy and expensive process. In 2023, the first newly constructed U.S. nuclear plant in decades came online. However, it was completed seven years behind schedule and $17 billion over budget.

Small modular reactors (SMRs) have been proposed as a more cost-effective option for nuclear power expansion. However, even larger SMRs can cost around $3 billion. Additionally, the first government-approved SMR project in the U.S. was ultimately canceled due to high costs.

“For nuclear reactor-grade suppliers, there are rigorous and costly training and quality assurance requirements,” the federal government said while unveiling its recently set nuclear objectives. “Consequently, it should be noted that nuclear reactor-quality materials and components tend to be significantly more expensive than their non-nuclear-grade equivalents.”

Restarting older reactors can also require a significant investment of time and finances. While the government is already pursuing plans to bring back reactors at sites like Three Mile Island, as well as facilities in Michigan and Iowa, all of these initiatives are projected to take years and billions of dollars to complete.

Additionally, some uncertainty remains around whether the incoming Trump administration will continue to support this expansion of U.S. nuclear energy. However, President-elect Donald Trump has stated he “will support nuclear energy production” by “working to keep existing power plants open, and investing in innovative small modular reactors.”