Introduction
The General Services Administration (GSA), which is responsible for managing government buildings, has recently announced a significant nuclear energy contract. This move comes in the wake of several major tech companies making a flurry of nuclear energy deals last year.
The Contract Details
The 10-year, $840 million contract is for 10 million megawatt-hours of electricity, which the GSA claims is equivalent to what’s needed for more than 1 million homes annually. The agency awarded the contract to Constellation, which operates the nation’s largest nuclear fleet and has recently announced an agreement with Microsoft to restart a nuclear reactor at Three Mile Island.
The Role of Nuclear Energy in the Contract
Nuclear energy makes up a significant portion of the GSA deal, approximately 4 million megawatt-hours, according to Constellation spokesperson Paul Adams. The increasing demand for electricity from AI data centers in Silicon Valley is driving the need for nuclear energy.
The Significance of the Contract
The federal government is the nation’s single largest energy consumer, making this contract a significant boost to the nuclear industry. This agreement marks a shift in the way corporations and governments approach sustainable energy procurements, with nuclear energy no longer being excluded from these deals.
Comments from Constellation President and CEO Joe Dominguez
"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. This agreement is another powerful example of how things have changed."
Constellation’s Commitment to Nuclear Energy
Constellation generates 10 percent of the nation’s carbon pollution-free energy, with a majority of its output coming from nuclear energy. The company also produces hydro, wind, and solar power, as well as electricity from gas-fired power plants.
Constellation’s Goal for Carbon-Free Electricity
Constellation has set a goal of reaching 100 percent carbon-free electricity by 2040, compared to close to 90 percent today.
The GSA’s Commitment to Reliable and Affordable Clean Energy
The 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 agreed to purchase 2.4 million megawatt-hours of electricity from this added capacity over 10 years.
The Scope 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.
The Benefits of the Contract
The GSA is framing the 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. This contract provides federal agencies with budgetary stability and protections from future price increases by keeping their electricity costs fixed for 10 years.
The Growing Demand for Nuclear Energy
In recent years, several major tech companies have inked splashy nuclear energy deals, including Google, Meta, Amazon, and Microsoft. In September of last year, Microsoft and Constellation announced a plan to restart a shuttered reactor at Three Mile Island in Pennsylvania.
The Biden Administration’s Support 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.
Conclusion
This contract marks a significant shift in the way corporations and governments approach sustainable energy procurements, with nuclear energy no longer being excluded from these deals. The GSA’s commitment to reliable and affordable clean energy is a major boon to the nuclear industry, which is poised for growth in the coming years.
Additional Resources
For more information on this contract and the growing demand for nuclear energy, please visit the following resources:
Comments
This contract marks a significant shift in the way corporations and governments approach sustainable energy procurements, with nuclear energy no longer being excluded from these deals. The GSA’s commitment to reliable and affordable clean energy is a major boon to the nuclear industry, which is poised for growth in the coming years.
New
The GSA’s contract is a significant step forward in the transition towards more renewable energy sources. With the increasing demand for electricity from AI data centers driving up competition for limited clean energy sources, this contract will provide federal agencies with budgetary stability and protections from future price increases by keeping their electricity costs fixed for 10 years.
Summary
- The GSA has announced a significant nuclear energy contract worth $840 million over 10 years.
- The contract is for 10 million megawatt-hours of electricity, which is equivalent to what’s needed for more than 1 million homes annually.
- Nuclear energy makes up approximately 4 million megawatt-hours of the GSA deal.
- This agreement marks a shift in the way corporations and governments approach sustainable energy procurements, with nuclear energy no longer being excluded from these deals.
