by Tim De Chant at TechCrunch
The Trump administration announced Tuesday it would provide Constellation Energy with a $1 billion loan to restart a nuclear reactor at Three Mile Island.
The energy company said last year it would reopen the reactor, which had been shuttered since 2019, after Microsoft committed to purchasing all the electricity from the 835 megawatt power plant for two decades. Constellation estimated the project would cost $1.6 billion, and it expects to complete the refurbishment in 2028.
Terms of Microsoft’s deal with Constellation weren’t disclosed. Analysts at Jefferies have estimated the tech company might be paying about $110 to $115 per megawatt-hour over 20 years of the deal.
That’s cheaper than a brand-new nuclear power plant would cost, but it’s a hefty premium over wind, solar, and geothermal, according to a comparison of energy costs from Lazard. Even wind and solar projects outfitted with utility-scale batteries to enable 24/7 power are cheaper.
Nonetheless,…
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