This seems like a good outcome from the Manchin deal.
Tax credit for nuclear power included in Senate spending bill
Included in the $433 billion Inflation Reduction Act, which is slated for a Senate vote as soon as this week, is a 10-year production tax credit for nuclear energy producers that could be a boon for reactor operators such as Southern Co., Constellation Energy Corp., Public Service Enterprise Group Inc. and Energy Harbor Corp
The proposed $15 per megawatt-hour credit for existing nuclear plants -- which provide about 19% of the nation’s electricity -- will help an industry that has undergone a wave of closures. Reactors have high operating costs and are increasingly struggling to compete with cheaper electricity produced using natural gas and renewables.
Between 22% and 38% of the nation’s nuclear fleet of 93 reactors is at risk of retiring in the 2030s, depending on natural gas prices, according to an analysis by Rhodium Group.
The nuclear provision is expected “to keep much, if not all, of that at-risk capacity on the grid,” said Ben King, an associate director at the independent research firm. “This is really important to continuing progress for decarbonization of the grid.”
Manchin Deal Tosses $30 Billion Lifeline to US Nuclear Reactors
www.bloomberg.com
Tax credit for nuclear power included in Senate spending bill
- Tax credit for nuclear power included in Senate spending bill
- Incentive could save as much as 38% of fleet, analyst says
Included in the $433 billion Inflation Reduction Act, which is slated for a Senate vote as soon as this week, is a 10-year production tax credit for nuclear energy producers that could be a boon for reactor operators such as Southern Co., Constellation Energy Corp., Public Service Enterprise Group Inc. and Energy Harbor Corp
The proposed $15 per megawatt-hour credit for existing nuclear plants -- which provide about 19% of the nation’s electricity -- will help an industry that has undergone a wave of closures. Reactors have high operating costs and are increasingly struggling to compete with cheaper electricity produced using natural gas and renewables.
Between 22% and 38% of the nation’s nuclear fleet of 93 reactors is at risk of retiring in the 2030s, depending on natural gas prices, according to an analysis by Rhodium Group.
The nuclear provision is expected “to keep much, if not all, of that at-risk capacity on the grid,” said Ben King, an associate director at the independent research firm. “This is really important to continuing progress for decarbonization of the grid.”