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