Energy

Planned Restoration of Michigan Nuclear Plant Shows Promise

New opportunities for American nuclear power may lie in reutilizing old facilities.

The ongoing restoration of the Palisades nuclear power plant in Covert Township, Michigan has drawn attention to both American energy needs and the potential for similar projects to meet those needs.

Palisades, which had operated for almost 50 years after opening in 1971, was closed in 2022 after numerous factors, including rising costs, made operation of the plant unsustainable. Changing economic tides in the United States, however, made Palisades’ renewal and reopening more viable and desirable than ever before, as Americans look for more accessible energy sources.

Notwithstanding enthusiasm at the prospect of Palisades’ restoration, which would be a first in United States history, the project will not be without its challenges. In addition to cost, Palisades will face regulatory hurdles, including with the Nuclear Regulatory Commission, which has no guidelines for restoring a plant.

However, this project could help reverse the trend of declining in nuclear power in the United States. If restored to operation, it has the potential to bring far more power to Michigan, as well as many excellent opportunities for new jobs.

Nuclear power is an important part of the nation’s energy portfolio because it provides a significant, reliable baseload power that can easily be ramped up to meet increased demand. With no emissions beyond water vapor, nuclear energy is considered an incredibly clean source of dispatchable energy. Nuclear energy and hydroelectric both stand out as the only two common generation technologies that are dispatchable and have no emissions except for water.

Other formerly operational nuclear power plants have been floated as prospects for restoration, including the Duane Arnold plant in Iowa (owned by NextEra Energy Inc.). Last month, a deal was reached between Constellation Energy and Microsoft to reopen the Three Mile Island plant of Pennsylvania. Both were closed relatively recently, in 2019 and 2020 respectively, and both renewal projects have significant potential.

NextEra CEO John Ketchum remarked in July that “[t]here would be opportunities and a lot of demand from the market if we were able to do something with Duane Arnold.” Pennsylvania State Representative Tom Mehaffie, whose district contains the shuttered Three Mile Island plant, indicated that the state could attract massive job growth, as new baseload power needs for datacenters and other businesses would be met by the plant’s restoration.

Pew Research polling indicates that support for nuclear power among Americans remains in the majority. The American Legislative Exchange Council has a number of model policies that support nuclear energy, including two recent model policies, the Affordable, Reliable, and Clean Energy Security Act and the Act to Define Clean Energy. Both of these bills support nuclear energy as a clean, reliable, dispatchable energy source. Additionally, ALEC has two other model policies, including  Act to Establish a Study on the Commercial Application of Existing Technology to Reclaim and Repurpose Spent Nuclear Fuel Rods and an Act to Create a Feasibility Study on New Nuclear Generation.

As part of ALEC’s “all-of-the-above” approach to electrical generation, we recognize that nuclear is an important part of the country’s baseload power. With demand for energy increasing at a rate not seen in decades, encouraging reliable, baseload generation, including nuclear energy, is essential to keep the lights on and factories powered.


In Depth: Energy

It is difficult – and perhaps even impossible – to overstate the relationship between readily available access to safe, affordable and reliable energy and individual prosperity and economic wellbeing. This is because energy is an input to virtually everything we produce, consume and enjoy in society. Think for a minute…

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