The General Services Administration (GSA), which oversees government buildings and facilities, has announced a groundbreaking nuclear energy contract. This significant development comes on the heels of several prominent tech companies making substantial commitments to nuclear energy in recent times.
A Multi-Billion Dollar Deal: 10 Years, $840 Million Contract
The GSA has awarded a 10-year, $840 million contract to Constellation, which operates the nation’s largest fleet of nuclear power plants. The agreement is for 10 million megawatt-hours of electricity, equivalent to meeting the needs of over 1 million homes annually. This monumental deal marks the biggest energy procurement contract in GSA history.
Nuclear Energy Takes Center Stage
According to Constellation spokesperson Paul Adams, nuclear energy constitutes a significant portion of the contracted power – approximately 4 million megawatt-hours. The company’s president and CEO, Joe Dominguez, emphasized the significance of this agreement:
"This agreement is another powerful example of how things have changed. Frustratingly, nuclear energy was excluded from many corporate and government sustainable energy procurements. Not anymore."
Constellation: A Leader in Nuclear Energy
As one of the largest providers of carbon pollution-free energy in the nation, Constellation plays a vital role in meeting the country’s clean energy needs. The company generates 10% of the nation’s carbon-free electricity, with nuclear power accounting for the majority of its output. Additionally, Constellation produces hydro, wind, and solar power, as well as electricity from gas-fired power plants.
While the company aims to reach 100% carbon-free electricity by 2040 (up from close to 90% today), it has already made significant strides in reducing its environmental impact.
The GSA’s Commitment to Nuclear Energy
GSA Administrator Robin Carnahan highlighted the importance of this contract:
"This historic procurement locks in a cost-competitive, reliable supply of nuclear energy. 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."
Benefits of the Contract
The agreement will enable Constellation to extend licenses for existing nuclear power plants and invest in new equipment and technology, resulting in 135 megawatts of additional capacity. The GSA has agreed to purchase 2.4 million megawatt-hours of electricity from this added capacity over a period of 10 years.
Broader Implications
The contract’s impact extends beyond the GSA’s buildings, as it will also benefit 13 other federal agencies, including the departments of Veterans Affairs and Transportation, the Federal Bureau of Prisons, the National Park Service, the Social Security Administration, and the US Mint.
Addressing Electricity Demand
The GSA frames this contract as a means to secure more affordable prices in light of increasing electricity demand from data centers and AI facilities. By locking in fixed rates for 10 years, federal agencies can enjoy budgetary stability and protection from future price increases.
Growing Interest in Nuclear Energy
Silicon Valley companies have been actively pursuing nuclear energy deals in recent times. In the past year alone, Google, Meta, Amazon, and Microsoft have all announced significant commitments to nuclear energy.
A Key Component of the Biden Administration’s Plan
The federal government’s support for nuclear energy is also reflected in the Biden administration’s plan to transition the US away from fossil fuels towards clean energy sources. The Department of Energy has already announced a $1.52 billion loan to help restart a retired nuclear generating station in Covert Township, Michigan.
A Shift Towards Nuclear Energy
The Trump campaign agenda, while seemingly contradictory, also included efforts to ‘support nuclear energy production.’ This development underscores the growing recognition of nuclear energy’s importance in meeting the nation’s clean energy needs.