Constellation Energy signed a 20-year power purchase agreement with Google that supports 890MW of new nuclear generation through uprates at existing reactors. The company announced the agreement on October 6.
The deal covers 11 units across six sites in Illinois, Pennsylvania and New Jersey. Constellation expects the first uprate to come online in 2028 and describes the program as a $4.3 billion investment. A separate 15-year supply agreement covers 2,700MW across the PJM Interconnection region.
The Google agreement follows a similar contract signed the previous week with Amazon. That 20-year agreement supports a 190MW expansion at the Calvert Cliffs plant in Maryland, expected between 2030 and 2032, backed by $3 billion of investment.
Both deals land as PJM faces a capacity shortfall of about 6.8GW while data center load grows. PJM plans to delay a reliability backstop procurement auction after the Federal Energy Regulatory Commission approved the design only in part on September 29. Constellation said the Google agreement responds directly to PJM's Bring Your Own Power proposal.
The Google contract includes load-shaping and demand-response capabilities that reduce consumption during periods of grid stress. The companies said the program is expected to sustain roughly 4,400 existing jobs and create about 7,200 temporary construction jobs. Constellation shares rose almost 14% in morning trading.
Constellation Chairman, President and CEO Joe Dominguez said the arrangement can serve as a model for how technology companies and the energy industry work together to deliver grid-wide benefits funded by private entities.
The companies also expanded a five-year technology agreement that applies Google Cloud and AI to site selection, power flow modeling, permitting and interconnection planning.
Source: Utility Dive - https://www.utilitydive.com/news/constellation-google-deal-will-bring-890-mw-of-new-nuclear-to-pjm/832223/