The U.S. Department of Energy said on June 23 it will make conditional loans totaling up to $17.5 billion to utilities and energy companies to support development of 10 large nuclear reactors at five sites across the country.
Energy Secretary Chris Wright said the loans, issued through DOE's Office of Energy Dominance Financing, are intended to revive the domestic supply chain needed to build large-scale commercial reactors and could shorten project development timelines by as much as three years. The announcement builds on an executive order signed a year earlier calling for 10 large reactors to be under construction by 2030.
Under the structure, Westinghouse, which manufactures the AP1000 commercial reactor, will partner with up to five utilities or energy companies nationwide to procure long-lead-time components at a fixed price. Each project will be jointly owned by Westinghouse and its partner, with both sides required to commit a combined $1 billion in project equity upfront before accessing DOE loan funds. DOE said Westinghouse has already signed letters of intent with seven potential partners tied to identified project sites.
Research firm Capstone identified Dominion Energy, DTE Energy, WEC Energy Group, Public Service Enterprise Group, and Entergy Corp. as utilities well positioned to access the financing, with DOE expected to announce which utilities receive funding later this year. Some observers questioned whether the loan amount matches the scale of the task, noting the total cost of building 10 AP1000 reactors could approach $200 billion and that no formal construction contracts yet back the announced projects.
Source: Utility Dive -- https://www.utilitydive.com/news/doe-offers-175b-loans-help-build-10-large-nuclear-reactors/823633/