• Strategic Investment Unleashed: PG&E’s Diablo Canyon plant secures a substantial USD6 billion investment under the Bipartisan Infrastructure Law, signaling a strategic move to preserve and empower the existing nuclear reactor fleet in the USA.
• Leadership Commitment to Nuclear Energy: Maria Robinson, Director of the US Department of Energy’s Grid Deployment Office, underscores the Administration’s dedication to domestic nuclear energy. The initiative supports the continuation of existing nuclear generation while strengthening the industry.
• Unexpected Lifeline for Diablo Canyon: Initially slated for closure in 2024 and 2025, Diablo Canyon’s two nuclear units get an unexpected reprieve due to California’s energy grid challenges. The state’s decision, amidst a record-breaking heatwave, allows these units to continue contributing 9% of California’s power generation.

The Pacific Gas and Electric Company (PG&E) plant is set to receive payments through the Civil Nuclear Credit (CNC) programmed a strategic investment of $6 billion USD under the Bipartisan Infrastructure Law. This initiative is geared towards maintaining the operational status of the existing reactor fleet in the USA. PG&E’s plant was conditionally awarded the credit in November 2022.

Maria Robinson, the director of the US Department of Energy’s Grid Deployment Office, emphasized the importance of preserving the nation’s nuclear fleet. She highlighted its critical role in achieving America’s clean energy goals and ensuring a reliable energy supply for homes and businesses across the country. Robinson stated that this announcement underscores the Administration’s commitment to domestic nuclear energy by supporting existing generation and strengthening the nuclear power industry.

The payments to PG&E will be distributed in instalments over four years of operation starting from 2023. The amounts will be adjusted based on factors such as the actual costs associated with keeping the two-unit plant in operation. The first payment, scheduled for 2025, will be determined by the plant’s operation in 2023 and 2024.

While nuclear power presently contributes nearly 50% of the USA’s carbon-free electricity, challenges such as shifting energy markets and economic factors have led to the premature closure of 13 commercial reactors since 2012. The CNC programmed, a part of the Bipartisan Infrastructure Law signed by President Joe Biden in November 2021, addresses these challenges by providing credits to “certified” reactors. These reactors must demonstrate projected closures due to economic reasons, with closure leading to increased air pollutants and carbon emissions.

Initially, PG&E had committed in 2016 to closing the two-unit Diablo Canyon plant at the end of its current licenses – unit 1 in 2024 and unit 2 in 2025. This decision aligned with California’s energy policy focusing on efficiency, renewables, and storage. However, in September 2022, amidst a record-breaking heatwave and California’s highest-ever peak demand, the state passed a law allowing the continuation of operation for the two nuclear units, which contribute 9% of California’s power generation.