You’ve reached your free article limit
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Sign In or Create an Account.
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Welcome to Heatmap
Thank you for registering with Heatmap. Climate change is one of the greatest challenges of our lives, a force reshaping our economy, our politics, and our culture. We hope to be your trusted, friendly, and insightful guide to that transformation. Please enjoy your free articles. You can check your profile here .
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Subscribe to get unlimited Access
Hey, you are out of free articles but you are only a few clicks away from full access. Subscribe below and take advantage of our introductory offer.
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Create Your Account
Please Enter Your Password
Forgot your password?
Please enter the email address you use for your account so we can send you a link to reset your password:
The U.S. and Israel’s war of choice has already destroyed many things, including the president’s domestic energy strategy.

President Trump’s war in Iran is not popular. More than half of Americans disapprove of the conflict, according to Nate Silver, while fewer than 40% approve it — a 17-point deficit that has dragged down the president’s overall approval rating with it. The major polling averages now show the president’s approval in the high 30s, compared to 42% at the beginning of the year.
America’s interpreting class has, I think, absorbed this truth about the war. What has attracted less attention, perhaps, is that the war has left Trump’s energy policy dead in the water.
The Trump administration is not over: He will remain president for the next two years and nine months, and I expect many of his officials’ ideas — including their ambitious nuclear energy buildout — to move forward. But Trump’s ambitious plans to remake the country’s energy system — and the bargain that he made with the American people and the world — have been defeated by reality.
Trump’s energy policy was premised on a simple idea: If Americans gave the fossil fuel industry whatever it wants, then they would enjoy cheap and boundless energy — and especially cheap gasoline. Beginning on day one, his administration struck down air and water pollution rules, canceled energy efficiency standards, and waged bureaucratic war on any state government or rival industry that dared to withhold market share from oil or gas. It aimed to make the market for fossil fuels as large as possible, essentially locking in compulsory demand for oil, natural gas, and coal across the economy.
In return, the unshackled energy industry was supposed to bless Americans with unlimited cheap electricity and gasoline. Trump described this bargain with characteristic blunt eloquence. He would end Biden’s “war on energy,” he promised crowds before the 2024 election: “We will frack, frack, frack, and drill, baby, drill.” In return, he said, “I will cut your energy prices in half within 12 months.”
Trump has manifestly failed to cut energy prices at all. Instead, his war of choice in Iran has sent gas prices surging, rising more than a dollar in a month. Americans are operating fewer drilling rigs today than they were a year ago.
Meanwhile, the country and the world are spiraling into the worst energy crisis in years. Yet Trump’s policy is not doomed because of these broken promises or high prices. The entire premise and justification of Trump’s strategy is now moot — and the administration is likely to spend the better part of its remaining time in office picking up the pieces.
The plan has failed. What is striking, however, is that I’m not sure Trump’s energy team has realized it yet.
To understand the Trump approach, look first to the power sector. The president began his administration by repealing a slew of energy efficiency rules for household appliances — a surefire way to drive up long-term electricity demand. He embraced the artificial intelligence boom, appointing techno-libertarians such as the venture capitalist David Sacks to senior administration positions and revelling in the surge in energy demand.
Higher electricity demand, to be clear, can be a good thing; demand from data centers could help build grid resiliency over the long term. But the Trump administration has instead fought efforts to meet the coming surge in demand with additional generation capacity from renewables. Even as the supply chain for new utility-scale natural gas plants has become clogged and backed up, the president’s agencies waged an all-out bureaucratic war on new wind, solar, and battery projects, condemning hundreds of new power plants to regulatory purgatory. They have even tried to keep companies from building wind farms on private land. In other words, the Trump administration kept America from diversifying its energy sources, doubling down on fossil fuels while preparing to upend the global fossil fuel supply chain.
Trump’s transportation policies followed the same logic. Most Americans know Trump and the Republican leadership have tried to crush the American electric vehicle sector, yanking consumer-side incentives and creating a new EV rust belt. But Republicans have also fatally weakened long-standing rules meant to improve the efficiency of gasoline-burning cars and trucks. Back during the mid-2000s oil shock, Congress revived the Corporate Average Fuel Economy rules, which in the years since have helped to improve the U.S. vehicle fleet’s fuel efficiency even as cars got larger and heavier. But last year, congressional Republicans set the penalties for violating those rules at zero dollars, essentially wiping them from the books. At the same time, the Trump administration has tried to terminate a similar EPA program for regulating car and truck gas mileage. It also shut down the emissions credit-swapping mechanisms that helped support new American EV companies such as Tesla, Rivian, and Lucid.
Combined, these policies have reduced the American economy’s ability to withstand an oil shock. And yet many of the president’s most important messengers appear not to have realized this. In late March, I attended the CERAWeek by S&P Global conference in Houston, the so-called “Super Bowl of energy” that brings together 11,000 professionals from across the oil, gas, utilities, and clean energy sectors. Interior Secretary Doug Burgum and Energy Secretary Chris Wright spoke to the group, but the administration’s most memorable spokesperson by far was Lee Zeldin, the New York Republican who leads the Environmental Protection Agency.
The conference was an odd one. The Iran War had ruined every oil executive’s talking points, which had seemingly been prepared by an unseen phalanx of communications staff early in Q1, so a curious and unspeakable unease permeated the proceedings. Despite the many emergency panels devoted to the topic, few seriously wanted to address the closure of the Strait of Hormuz; nobody knew what to say about the biggest convulsion in the oil trade since the 1970s. Was gas about to go to $7 per gallon? Was the oil and gas industry about to transform forever? The best most executives could manage was say that they were working overtime to keep Persian Gulf employees safe.
CERAWeek sprawls across Houston’s 24-story Hilton Americas hotel and a neighboring convention center. At its spiritual and literal center is a huge, dark ballroom, where hundreds of attendees watched as Daniel Yergin — the author of the comprehensive oil history The Prize and de facto dean of energy analysts — chatted amicably with energy CEOs and government officials on a lit central stage. Yergin’s interview style could not be described as grueling, but it revealed how attendees were thinking and feeling, and their comfort on stage.
It fell to Zeldin, who spoke uncomfortably with Yergin on on Wednesday, to reveal the perishing of the president’s energy policy. Unlike Burgum, a former governor, Zeldin lacks a certain political subtlety; unlike Wright, a former fracking executive, Zeldin never gained a working knowledge of the oil and gas industry. His greatest qualification for the EPA job seemed to be a visceral hatred of offshore wind projects near his Long Island home — and although as a congressman Zeldin could boast a somewhat moderate environmental record, he has since reformed himself, denouncing the “Green New Scam” and “the climate change religion” in his new role. It has worked: He is reportedly on the short list to replace Pam Bondi as attorney general.
The risks of this flexibility were on display, however, when Zeldin chose to defend Trump’s policies to Yergin on the basis of affordability. By cutting pollution rules for cars and trucks — and repealing the regulatory finding that let the EPA regulate heat-trapping tailpipe pollution at all — the EPA was making life cheaper for regular Americans, Zeldin claimed.
Americans “want government to heed and apply pragmatism and common sense to help achieve the American dream, to make life more affordable,” Zeldin said. “Anyone who cares about affordability — anyone who cares about being able to have access to heat your home and to fuel your car — people who right now, are choosing between heating their homes or filling their refrigerator or getting their prescription drugs — these Americans put President Trump back in office in November of 2024, and they deserve a vote,” he said.
Someone should tell those voters that Trump’s Iran war is likely to drive up costs of gasoline and food and prescription drugs. But it is all the more painful because Zeldin did not appear to understand his own agency’s conclusions. The problem is that Zeldin’s rollback — and the rest of the Trump administration’s war on EVs — will not actually make gasoline cheaper at all. According to the EPA’s own analysis, the rollback will instead make gasoline more expensive because it will increase the amount of gasoline that people have to use to do the same amount of driving. The rollback is, instead, supposed to make cars cheaper because it will reduce the amount of emissions-lowering technology that automakers must install in each vehicle.
Especially now, the rollback is unlikely to save Americans money. As Zeldin was forced to concede at a Politico-hosted event a day earlier, the EPA rollback only brings economic benefits to the American people if you assume oil prices will stay unreasonably low — on the order of $47 a barrel, or about $2 a gallon for gas. “I don’t think anyone is making believe that the fluctuation that’s taking place over the last few weeks is indicative of where the price of oil is going to be months from now, or years from now,” Zeldin said when asked about the discrepancy. But $47 oil is so low, so unbelievable, that it would spell economic doom for most American oil drillers.
Yergin did not make this apocalyptic scenario clear on stage, but he didn’t need to: I did not get the sense that Zeldin particularly captivated the energy executives in the audience, either. When Yergin asked him to give an example of the kind of regulations that the EPA is cutting, Zeldin cited the agency’s accelerated effort to clear hazardous material after the Los Angeles wildfires, then meandered into a multi-minute denunciation of the mainstream media that ended with his thoughts on how to properly construct a news diet in 2026.
“People would ask me, like, ‘What's the best place to go to get caught up on the news?’” Zeldin said. (Yergin, the winner of the 1992 Pulitzer Prize for general nonfiction, had not asked.) “Honestly, my best answer is, if you have the time to be able to read five different sources and to form your own independent judgment, because unfortunately, right now, there’s some of these outlets — you go to one outlet and you’re not getting the full story.”
“So we'll get back to the environment now,” Yergin replied. Laughter filled the ballroom.
It is not only the domestic aspect of Trump’s energy policy that has suffered a setback. It is the foreign policy, too. Trump, Wright, and Burgum have argued to Americans (with varying levels of sophistication) that America’s economic future lies in selling fossil fuels to the world, and that countries with more aggressive decarbonization strategies will eventually turn away from electric technologies and back toward the affordability and reliability of oil and gas. (Even before his time in government, Wright framed America’s fossil fuel exports in humanitarian terms, casting them as a form of “energy freedom” provided to developing states.) Zeldin could not help himself at CERAWeek from mentioning that the Strait of Hormuz’s closure had made Asian countries even more interested in America’s energy exports.
Yet the Iran debacle, too, has undercut this policy of fossil exporterism. It has convinced Asian and European countries that oil and liquified natural gas are too volatile to enthrone in the transport and power sector when alternatives are available. And it has forced them to abruptly rethink several kinds of fossil-exposed risks at once: the geographic risk of Persian Gulf-supplied energy and the political risk of American-supplied energy. That’s roughly a quarter of global oil capacity — and half of LNG export capacity.
The Iran War and the resulting Hormuz closure are testing the compact at the heart of America’s security relationship with East Asia — that the United States will guarantee freedom of navigation, and with it a secure supply of seaborne energy, to its allies and partners. No wonder that in the days and weeks since that pact’s termination, we have seen more East Asian countries immediately shift their energy policies to more closely resemble China’s, which designed its own energy system precisely to survive the lack of these American guarantees. In the months to come, we will see these countries do exactly what Trump officials said they would not do — build more solar and batteries, and buy more Chinese-made electric vehicles. They will probably burn more coal, too. And many of them will deepen their trade relationships with China, whose homegrown electric automakers are already seeing surging demand for new vehicles. Donald Trump may hate decarbonization, but few have done more than him to make it attractive.
Not that the war has shown that an energy transition is inevitable — or immediately possible. Like the Ukraine invasion, it has revealed the world’s reliance on other essential molecules derived from hydrocarbons, such as plastics, medications, and fertilizer. The existence and persistence of these molecules is, of course, known to would-be decarbonizers and economic planners. But most countries — other than China — have not invested in ways to pursue them at home or with lower emissions. (The United States made a number of plays to diversify its feedstocks for those industries during the Biden administration, but Trump largely gutted those efforts.) China, meanwhile, has invested in both low-emissions industrial processes and, more ominously, a new fleet of coal-to-chemical facilities seemingly designed to bolster the country’s energy security. These facilities, which have boosted China’s heat-trapping pollution in recent years, now seem less like a preparation for future military adventurism and more like a prudent investment.
So even as the crisis has undercut Trump’s hazy vision of a cheap, carboniferous, American-led world, it will not exactly redound to the benefit of clean energy. Perhaps Trump’s energy officials can savor that irony as they descend into political irrelevance.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Current conditions: Tropical Storm Simon is expected to intensify into a Category 4 storm as it tracks northeast into Mexico and Texas from the eastern Pacific • Further north in the Pacific, Tropical Storm Rachel is barreling toward Southern California and northern Mexico • Hurricane Isaias, the first major storm of the Atlantic hurricane season, is poised to make landfall as a Category 2 sometime between 8 p.m. ET and 1 a.m. and somewhere between Alabama’s Dauphin Island and Destin, Florida.
With swells topping 7 feet, Hurricane Isaias has forced almost two-thirds of U.S. oil output in the Gulf of Mexico offline, as the storm cuts a path through one of the most productive regions of the sea. Of the 371 manned drilling rigs in the Gulf, 121 were evacuated as of Thursday night, representing a third of all platforms, according to data from the Department of the Interior’s Bureau of Safety and Environmental Enforcement. But those rigs represent 1.3 million barrels per day of production, or roughly two-thirds of the Gulf’s crude output. Almost 1.2 million cubic feet per day of gas production, representing over 57% of U.S. production in the Gulf, is also offline.
Meanwhile, an attack on an oil tanker near Qatar, in an area The Wall Street Journal described as deep inside the Persian Gulf, has triggered fears among traders that Iran plans to broaden its strikes on vessels traveling beyond the Strait of Hormuz as the U.S. Navy loosens the Islamic Republic’s grasp over the narrow waterway. The price of Brent crude, the key global benchmark for oil, spiked more than 4%.
Last month, OpenAI provided investors with figures indicating that it expected to rake in $70 billion in annualized revenue as of the end of September. But updated financial documents show a $20 billion shortfall in the ChatGPT maker’s books. The gulf between the two numbers amounted to what the Financial Times called “a massive gap likely to damp optimism about the growth of AI demand” at a moment when investors are diverting billions from factories, healthcare, and housing into data center infrastructure.
Shares in companies whose values are linked to rising demand for electricity, such as the utility Constellation Energy, the nuclear startup Oklo, and the geothermal developer Fervo Energy dipped on Thursday, along with chipmakers Nvidia and Micron.
First off, let me just say, this is quite a stirring way for a national government to begin a press release touting a policy on energy efficiency: “The world is changing rapidly. In response, a confident Canada is choosing to build.” In the name of slashing bills in a country where 7 million households “still heat their homes with oil, propane, diesel, electric baseboards, or outdated furnaces,” Prime Minister Mark Carney launched a nearly $1.5 billion (in U.S. money, not loonies) program Thursday aimed at delivering a million home retrofits. The first part of the program will provide a national heat pump rebate of up to $12,000 for up to 820,000 households. The second part will support the Canada Mortgage and Housing Corporation and the Canada Infrastructure Bank to renovate 280,000 units over the next eight years to make homes more airtight and energy efficient. Combined, the measures are expected to reduce Canada’s emissions by 25 million metric tons, equal to taking 8.5 million cars off the road for a year.
While my colleague Katie Brigham had a really sharp guide to making your home more efficient back in 2024, when federal money was flowing into such projects through tax credits, U.S. support for home retrofits has fizzled since President Donald Trump returned to office. But as the effects of wildfires worsen, the market for DIY fire protection is booming, our colleague Jeva Lange wrote this week.
Sign up to receive Heatmap AM in your inbox every morning:
Polskie Elektrownie Jądrowe, the state-owned company building Poland’s first nuclear station on its Baltic coast, has begun ordering long-lead items for its planned trio of Westinghouse AP1000s. That typically involves heavy forgings and castings for pressure vessels, World Nuclear News reported, as well as steam turbines and generators, and marks a major milestone for a project that has started gaining new momentum after years of bureaucratic back and forth.
Urenco USA, the American division of the European nuclear fuel giant, announced Thursday that its new enrichment facility in the U.S. is now 75% complete. “We are consistently delivering new capacity to help fuel the U.S. nuclear industry and allied nations, and our teams are doing it ahead of schedule and on budget,” Jody Blackshear, Urenco USA’s managing director, said in a statement. “This experience will support our larger capacity programs in the years ahead as we look to increase our enrichment production by more than 50% to meet the needs of our customers with traditional and advanced reactors.”

El Niño is here, and it’s threatening below-average rainfall across the northern parts of South America and above-average precipitation in areas such as southern Brazil, Paraguay, and Argentina. That, according to a new International Energy Agency analysis, poses a problem for a continent that depends heavily on hydropower for electricity. “While countries across the region have accumulated significant experience in managing hydrological stress due to El Niño and other climate-related risks, preparedness measures are often focused on specific events, rather than embedded within specific and comprehensive risk-management frameworks,” the report stated. “With climate-related disruptions likely to become more frequent and severe, there is increasing value in adopting a systematic approach to assessing and strengthening emergency preparedness for the electricity sector.” Among the steps the IEA recommended: More interregional power connections, more diverse power mixes, and more dispatchable power units.
QuantumScape has long been a frontrunner in the race to commercialize solid-state batteries that are lighter, more efficient, and ultimately cheaper than the lithium-ion packs that dominate the market today. Now, much like other developers who were previously locked into electric vehicles, the San Jose-based startup is getting into the data center business. On Thursday, the company announced the launch of its QS PowerBlock, a battery unit for behind-the-meter power users. The modular system “can deliver four times the power density and five times the runtime” of the data center industry’s current standards for batteries, the company said in a press release. “Solid-state battery technology offers an unmatched combination of energy, power, and safety for many different applications, from electric vehicles to AI data centers and beyond,” Siva Sivaram, QuantumScape’s chief executive, said in a statement.
Many nonprofits representing the environmental and climate movement are split.
This is Heatmap Daily, an evening digest written by our executive editor.
It’s now been just over a week since a gang of four bipartisan senators released the Bipartisan American Affordability and Jobs Act, or BAAJA. The permitting reform proposal would make too many changes to federal law to summarize cleanly here — read our explainer for that — but suffice it to say it creates a messy group of winners and losers. Utilities, data centers, and the Trump administration would lose; electricity ratepayers, clean energy companies, long-distance transmission lines, and natural gas pipeline builders win. (As would geothermal startups, virtual power plant providers, and a few other climate tech subsectors that my colleague Katie Brigham recently detailed.)
In the ensuing week since its release, we’ve gotten a better sense of the battle lines over the bill. The hardhat unions largely support the proposal (although the International Brotherhood of Electrical Workers, which is often aligned with utility executives, has stayed notably silent on it.) Clean energy trade groups, such as the American Clean Power Association, back it, too, as do fossil fuel lobbying groups, such as the American Petroleum Institute.
Groups representing the environmental and climate movement are more split, and some of the most influential nonprofits have yet to render a verdict. Earlier today, the Sierra Club published its first take on the proposal, which it described as a “hard look” at the bill. The Natural Resources Defense Council asked its own “hard questions” last Friday. Neither document rejects the proposal outright, although both are critical, and both suggest that future statements are coming.
To some degree, the statements say what you might expect: The groups like all the parts of the compromise that Democrats fought for (such as those that will encourage transmission) and dislike what Republicans wanted (such as those that will ease some pipeline permitting). That is what a compromise means — and for congressional procedure reasons too tedious to explain here, permitting reform will likely always need to be passed as a bipartisan compromise, because it will always need to overcome a 60-vote Senate filibuster.
The Sierra Club’s assessment divides the bill into “green flags,” which will make “long-overdue changes to protect consumers and level the playing field for proposed transmission,” such as by making it easier to plan long-distance power lines, protect ratepayers from utility and data center freeloading, and clarify who in the government can approve power lines. It also names four “red flags,” including the “hollowing out” of court authority over some permits, the removal of a Clean Water Act provision that lets governors block pipelines and power lines, and the option to delegate partial Endangered Species Act enforcement to state governments.
This is a helpful scheme, and I hope the Sierra Club continues using it. But I think it would be a mistake to analyze the bill solely through this metric, because it implicitly assumes we are starting from a neutral baseline — or that every additional “unit” of policy support, so to speak, helps an insurgent industry as much as it might aid an incumbent industry. To be clear: Although I’ve endorsed the idea of permitting reform in the past, I’ve been careful not to endorse or reject this particular permitting bill yet; I hope to write a more comprehensive take on this legislation — and whether I think it’s a good idea — before senators ultimately vote on it.
So for now, let me say that I think everyone should keep in mind that the baseline around U.S. energy permitting is, in fact, not neutral today. By this, I do not merely mean that natural gas pipelines already have a one-stop shop for federal permits, but transmission developers have to go hat in hand to every state government; nor that fracking is already carved out from some federal environmental review laws, but enhanced geothermal technology isn’t.
The mismatch goes deeper than that. Many of the discussions of the bill that I’ve seen seem to fear that the United States might witness some enormous and unprecedented fossil fuel buildout were the bill to pass. But make no mistake: We are already witnessing such a buildout. The United States is slated to add more than 60 gigawatts of new natural gas generation capacity by 2030 under its existing laws.
The existing system of laws, regulations, and procedures is failing to avert an enormous fossil fuel buildout. The existing system has proven itself completely inadequate to manage an era of electricity demand growth and the data center boom without surging fossil demand and sky-rocketing electricity prices. The existing system of laws is pushing hyperscalers and developers to burn natural gas on site, often through rudimentary jet engines.
And the existing system of laws has shown that fossil fuel consumers will go to great lengths to move and obtain fossil fuels, even when dedicated transport options like pipelines are not available. I’ve heard fears that the permitting bill will make it easier to build natural gas pipelines. But pipelines, to a dedicated artificial intelligence customer, are no constraint: Oracle is now delivering natural gas to some of its data centers by truck when pipeline capacity isn’t available.
There may be reasons for green groups to reject this deal. (And there may be reasons for Democratic lawmakers to support it anyway, even if environmental groups oppose it.) But the perfection of our current environmental and energy legal regime is not one of them. Even if your sole goal were to reduce the carbon emissions produced by the American energy system — even if you set aside the problems with cost, conventional pollution, or monopoly control — the current system sucks.
Advanced nuclear will take a decade or more to hit commercial scale. Meanwhile, the hyperscalers need power now. Enter the uprate.
When America’s tech titans started plowing money into nuclear technology to power data centers in 2024, companies such as Google and Amazon opted to invest first in next-generation reactor startups. But electricity demand is soaring today, and those projects are still years away — at least — from generating power at reasonable commercial rates.
So the industry is hedging by betting on existing nuclear plants to pump out more electricity in the near term. Uprates — renovations that allow nuclear operators to produce more power from existing reactors — are all the rage this year.
In February, the Department of Energy issued its largest-ever loan to Southern Company to fund up to 6 gigawatts of uprates across the utility’s nuclear fleet. Last week, Amazon signed a deal with Constellation Energy, the nation’s largest operator of nuclear reactors, to uprate the Calvert Cliffs plant in Maryland to generate another 190 megawatts on top of its current 1.8-gigawatt output. Soon after, the Energy Department offered nuclear operator Vistra a $4 billion loan to uprate plants in Ohio and Pennsylvania.
Then on Tuesday, Google inked its own deal with Constellation aimed at wringing out 890 megawatts of new power from 11 reactors across PJM Interconnection, the nation’s second-biggest and arguably most overworked grid system.
“Everyone loves nuclear, but it takes a really long time to build,” Raiford Smith, Google’s head of power and energy for the cloud, told me yesterday. “The fastest way to get it is via uprates. It’s real megawatts, but the quicker, shorter-term approach.”
Building new reactors, he said, “is the intermediate term plan, and we see fusion as the longer term bet.” Given that “new data centers are coming on at a gigawatt a clip, that means even with all the uprates, there’s still more to come,” he added.
The investments into existing nuclear stations deliver a win for Constellation, whose chief executive, Joe Dominguez, has been among the more vocal C-suite skeptics of what my colleague Matthew Zeitlin described as utility executives’ “load growth mania” over the past two years. But the deals say as much about the shifting lines in the debate over how to expand the nuclear power fleet in this country — what size reactors are better, how to finance projects — as the disagreement over how much new generation is needed to supply the artificial intelligence boom.
The deal “is a win-win,” Emmet Penney, the director of energy and infrastructure at the think tank Foundation for American Innovation, told me. “Constellation and Google are revealing just how essential our nuclear fleet is to maintaining our energy dominance.”
America’s last attempt at a nuclear buildout ended in a series of financial boondoggles. The problems traced back to numerous factors: Decades without any nuclear construction atrophied the workforce. Electricity market reforms aimed at breaking up monopoly utilities left the industry with few players equipped with large enough balance sheets to take on megaprojects that would take years to build and billions of dollars of upfront capital. Increased competition from cheap natural gas.
The only two new reactors that made it over the finish line, Southern’s pair of Westinghouse AP1000s at the Alvin W. Vogtle Generating Station in eastern Georgia, came in billions of dollars over budget, in part because the developers erred in choosing a Nuclear Regulatory Commission licensing pathway that required long stops and costly delays every time the builders tweaked the design. Since those were the first AP1000s constructed in the U.S., there were plenty of last-minute design kinks to iron out.
In the meantime, the industry rallied behind the idea of small modular reactors. By making individual reactors roughly a third or less powerful than large-scale units such as the AP1000, the thinking went, developers would need to buy more, helping the technology slide down the cost curve through repeated construction and assembly-line manufacturing of components.
While Google and Amazon both backed fourth-generation startups whose designs use coolants other than water, such as liquid sodium or helium gas, the only such reactor operating in the world is in China, and America’s track record of running similar plants is poor. As such, government-owned utilities such as Canada’s Ontario Power Generation and America’s Tennessee Valley Authority have thrown their weight behind third-generation SMRs that essentially just shrink down existing water-cooled technology. The first of GE Vernova Hitachi Nuclear Energy’s BWRX-300s, a 300-megawatt design based on the boiling water reactors that make up about a third of the U.S. fleet, is now underway at OPG’s Darlington plant. In the U.S., meanwhile, the NRC just issued a construction license for the TVA’s first BRWX-300.
But the completion of the second AP1000 at Plant Vogtle demonstrated an uncomfortable reality proposed by researchers at the Massachusetts Institute of Technology: That the next, cheapest reactor to build in the U.S. would be another of Westinghouse’s flagship design. Vogtle Unit 4 came online in 2024 roughly 30% cheaper and faster than its slightly older twin, Vogtle Unit 3.
If that reduction seemed to justify the approach SMR companies were pursuing, a report by an economist and former antinuclear researcher raises new questions. The study by Charles Komanoff, which I covered here last month, suggests that the number of reactors required to achieve major cost reduction through “economies of duplication” pales in comparison to the price drop achieved through “economies of scale.” In other words, the nuclear industry’s time-tested approach to making reactors more economical — making them bigger — is still the best bet.
The Trump administration certainly agrees. The Energy Department laid plans for at least 10 new AP1000s last year, and put up another nearly $20 billion loan package for utilities that form joint ventures with Westinghouse to build one of the 1,100-megawatt reactors. South Korea is currently working out the fine print on a deal to help finance and build as many as six AP1000s and two APR1400s, the Korean rival to the Westinghouse reactor.
Whether any American utilities step up to help build any of those AP1000s remains an open question.
“There’s no way any utilities could consider building a large AP1000 because doing so could bankrupt the whole operation, and they don’t have enough confidence,” Chris Gadomski, the lead nuclear analyst at the consultancy BloombergNEF, told me.
The workforce that constructed the two AP1000s at Vogtle, he said, are now out building data centers. Unlike the Chinese, whose state-owned nuclear companies reverse engineered the AP1000 and made it relatively cheap to build by constructing as many as half a dozen at a time at one location, “we don’t have the wherewithal or sites in this country to build six reactors at once,” Gadomski said. “You’re lucky to build two at one site in this country.”
So fusion and next-generation fission remain years away. Current-generation SMRs come with big questions. And the leading large-scale design, the AP1000, is proving a hard sell to utilities. That leaves two options: Restarting decommissioned plants and uprating current reactors. The Energy Department has pumped billions in loans into projects to restart at least three permanently closed reactors: Holtec’s Palisades plant in Michigan, NextEra’s Duane Arnold facility in Iowa, and Constellation’s Crane Clean Energy Center, née Three Mile Island, in Pennsylvania. The consensus among industry experts is that those are the only three that remain intact enough to start back up; every other shuttered plant is at too advanced a stage of demolition.
That leaves uprates.
There are limits to how much power can be drawn from existing plants, said Jeff Jenkins, the founder and managing partner of Bernhard Capital Partners, an investment firm whose portfolio includes Allied Power, a contractor that has worked with Constellation on past uprates. “There’s still a few gigawatts out there,” he said. “And a gigawatt is a lot.”
But ultimately, the U.S. nuclear buildout needs options.
“It’s very much a hedge,” Gadomski said. “They’re spreading their bets. That’s a strength of Google’s strategy. They’re willing to place bets on advanced reactors, fusion, and still try to double down on the capacity of existing plants.”