Reprinted with permission from the October 11, 2024, edition of Connecticut Law Tribune © 2024 ALM Media Properties, LLC. All rights reserved. Further duplication without permission is prohibited, contact 877-257-3382 or reprints@alm.com.
Nuclear power has the ability to significantly increase carbon-free baseload generation to meet the growing demand for electricity while also providing price stability and enhancing reliability in the region.
There has been a resurgence in the United States in the desire to expand nuclear power generation and to encourage innovation and investments in advanced nuclear technologies and traditional nuclear plants. The renewed focus on nuclear is being driven by the expanding demand for baseload power as a result of the advancement of artificial intelligence (AI) and the heavily intensive energy usage needed to operate very large data centers that are required for AI innovation, as well as the electrification of automobiles and heating systems, and the public policy to decarbonize our electricity supply.
Clean energy initiatives at the federal and state levels, including in Connecticut and throughout New England, will require carbon-free generation sources that will help displace the need for fossil fuel generation while also supporting the expansion of renewable sources, such as wind, solar and battery storage. Nuclear power has the ability to significantly increase carbon-free baseload generation to meet the growing demand for electricity while also providing price stability and enhancing reliability in the region.
Connecticut has long relied on nuclear power to meet the state's electricity needs. In 2022, the Millstone Nuclear Power Station (Millstone), which is the state's only operating nuclear power facility, generated 37% of Connecticut's electricity. Nuclear power also generated 87.2% of Connecticut's carbon-free electricity, complementing wind and solar, and will be vital in helping the state meet its goal of 100% carbon-free generation by 2040. Advanced nuclear technologies, such as small modular reactors (SMRs), offer the potential to grow nuclear power generation in the state.
The Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy (ADVANCE) Act seeks to bolster the development and deployment of new nuclear technologies and can help Connecticut take advantage of the resurgence in nuclear power generation. The ADVANCE Act was passed with bipartisan support by a margin of 393-13 in the U.S. House of Representatives and 88-2 in the U.S. Senate and was signed by the president on July 9, 2024.
The ADVANCE Act offers the following benefits, among others, for the development of new carbon-free advanced nuclear power generation technologies:
- Provides support and incentives for the development and deployment of new advanced nuclear technologies.
- Streamlines and modernizes the federal regulatory approval process.
- Reduces the time and cost to develop new advanced nuclear technologies.
- Reenergizes the domestic nuclear power sector.
Since 1979, Connecticut had a moratorium on new nuclear facilities that would last until the federal government identified and approved a demonstrable technology or means for the disposal of high-level nuclear waste. However, in 2022, the Connecticut legislature passed House Bill 5202, An Act Exempting Existing Nuclear Power Generating Facilities in the State from the Nuclear Power Facility Construction Moratorium, with bipartisan support that was signed by the governor on May 24, 2022. The legislation exempted Millstone from the moratorium and allowed for the development of advanced nuclear technologies that include SMRs at the site.
The ADVANCE Act, coupled with Connecticut lifting the ban on new nuclear development at Millstone, offers the following potential benefits for Connecticut and New England:
- Substantial increase in carbon-free electricity generation.
- Potential to displace future fossil fuel generation.
- Expansion of baseload power into the New England power market.
- Enhanced reliability for the Connecticut power grid.
- Price stability for wholesale prices in the region.
- Support for the expansion of renewable sources, including wind, solar and battery storage.
ISO New England (ISO-NE) is forecasting that both electricity usage and peak demand will increase substantially over the next decade. Notably, ISO-NE is projecting a 17.5% increase in electricity usage and a 32% increase in winter peak demand over the next 10 years, led by increases in demand for electric vehicles and electric heating systems.
Additionally, AI has the potential to further increase the demand for electricity in New England over the next decade. AI is significantly increasing the demand for electricity in certain regions across the country as the power demand from data centers to support AI usage and development is expected to surge in the coming years. This trend could put a further strain on New England's electricity supply if data centers are expanded in the region.
In March 2021, Connecticut passed Public Act No. 21-1, An Act Concerning Incentives for Qualified Data Centers to Locate in the State on an expedited basis to encourage data center development in the state. The law provides for property tax and sales tax exemptions for certain qualified large-scale data centers that meet certain requirements and are located in the state, which has the potential to spur additional demand for electricity in the region.
Connecticut should continue to use its wise foresight and work with other stakeholders, including federal and state agencies, Millstone and ISO-NE, to support the continued development of advanced nuclear technologies in the state. This would add much-needed carbon-free generation to the portfolio mix, enhance reliability, stabilize prices and support the continued development of renewable resources—including wind, solar and battery storage—in the state.
Paul Corey is a partner at Barclay Damon in New Haven, Connecticut. He has over 23 years of experience working with public and private-sector clients on energy, utility and regulatory matters.