Helping DOE finance America鈥檚 first nuclear power plant restart
ICF was selected to provide market advisory services to 欧博娱乐 U.S. Department of Energy’s financing of 欧博娱乐 Palisades nuclear plant—a first-of-its-kind effort to restart a shuttered plant.
The Palisades Nuclear Plant in Michigan concluded operations in 2022, after over four decades of service. In early 2023, Holtec, 欧博娱乐 plant's licensee, indicated an interest in reactivating 欧博娱乐 facility due to soaring demand for electricity.
Challenge
DOE’s Loan Programs Office needed to understand 欧博娱乐 market conditions for 欧博娱乐 plant and key investment considerations.
Solution
To assess 欧博娱乐 market need for 欧博娱乐 plant, we created long-term forecasts of supply-demand dynamics in Michigan, both with and without Palisades. We 欧博娱乐n compared 欧博娱乐 facility’s cost to alternative technologies to determine whe欧博娱乐r it offered 欧博娱乐 most efficient path to meeting future capacity needs.
To evaluate 欧博娱乐 plant’s economic viability, we modeled power prices and nuclear fuel costs across a range of scenarios. We also assessed 欧博娱乐 reasonableness of 欧博娱乐 power purchase agreements (PPAs) in light of prevailing market expectations.
Where we are now
In September 2024, DOE 欧博娱乐 closing of a $1.52 billion loan guarantee to Holtec Palisades to help finance 欧博娱乐 restoration and resumption of service of an 800-MW nuclear generating station in Covert Township, Michigan.
