A newly operational nuclear reactor in Georgia marks the completion of a project that faced delays and cost overruns, significantly impacting the outlook for nuclear power in the U.S.
Plant Vogtle, operated by Southern Co., originally opened in the 1980s with two reactors. The addition of two new reactors to the plant cost over $30 billion, more than double the initial estimates. These cost escalations are a primary reason why there are no other large-scale nuclear power projects under development in the U.S., with the industry shifting focus to smaller designs.
Despite the challenges, Plant Vogtle now stands as the nation's largest nuclear plant and the largest producer of carbon-free electricity. This development comes at a time when public perceptions of nuclear power are evolving. Each of the two new reactors is capable of powering approximately 500,000 homes and businesses, according to Georgia Power, a subsidiary of Southern Co.
Chris Womack, chairman and CEO of Southern Co., hailed the Vogtle expansion as a "hallmark achievement," emphasizing its economic benefits and showcasing the company's global nuclear leadership.
Southern Co. also operates another nuclear plant in Georgia, with nuclear power accounting for about a quarter of its generation in the state last year. However, the Vogtle project faced numerous challenges, including delays, design changes, and financial turmoil. These issues, along with similar problems at a project in South Carolina that was ultimately abandoned, led the original contractor, Westinghouse Electric, to declare bankruptcy in 2016. Southern Co. took over the project but faced further disruptions due to the pandemic.
The average Georgia Power residential customer has already paid approximately $1,000 for the construction of the plant, which lasted seven years longer than initially expected. Liz Coyle, executive director of the nonprofit consumer group Georgia Watch, expressed concerns about the project's impact on customers, particularly regarding the cost of electricity.
The Vogtle experience, along with historical delays and cost overruns, has dampened enthusiasm within the utilities industry for large-scale nuclear projects. Instead, utilities are now looking at small modular reactors (SMRs) as potential cheaper alternatives. These reactors could be manufactured in a factory and shipped to sites, offering economies of scale.
While no SMRs have been deployed in the U.S. yet, the industry is optimistic about their potential. Womack stressed the importance of both large and small nuclear projects in meeting the rising power demand in the U.S., emphasizing the industry's experience and lessons learned.
The federal government's support, including tax credits for nuclear power producers, could change the outlook for nuclear power. These credits, available to both existing and new projects, could help mitigate cost overruns and protect against unexpected expenses.
Despite the challenges, there is still optimism about the future of nuclear power in the U.S. Some experts believe that improved supply chains and lessons learned from past projects could lead to smoother developments in the future. Buongiorno, a nuclear-engineering professor at MIT, emphasized the importance of capitalizing on past experiences to avoid losing expertise in building large nuclear projects.
Utilities like Southern Co., Tennessee Valley Authority, and Duke Energy are considering SMRs as part of their plans to decarbonize power generation in the coming decades. While the U.S. lags behind countries like China and Russia, which are already operating SMRs, projects like TerraPower and Oklo are aiming to bring SMRs to North America, offering potential solutions for a cleaner energy future.