DOE issues solicitation for $12.5bn nuclear loan guarantee

The Department of Energy (DOE) said Dec. 10 that it has issued a soliciation for up to $12.5bn in federal energy loan guarantee money to support advanced nuclear energy projects.

The first deadline for Part 1 applications is March 18, 2015. That deadline will be followed by rolling deadlines about every six months.

The effort would support construction of nuclear projects that reduce or avoid greenhouse gas emissions, according to a DOE news release.

DOE has identified several key areas of interest in the proposal. They include: Small modular reactors or SMRs, uprates and upgrades at existing facilities, and front-end nuclear projects.

Energy Secretary Ernest Moniz announced the measure and touted it as part of the Obama administration’s “all-of-the-above” energy strategy.

Southern (NYSE:SO) subsidiary Georgia Power and its partners are using a federal loan guarantee to help underwrite the costs of the Vogtle 3 and 4 project in Georgia. However, SCANA (NYSE:SCG) is not using a federal loan guarantee in its development of V.C. Summer Units 2 and 3 in South Carolina. NuScale Power has also received a DOE loan guarantee to help commercialize its 50-MW SMR technology.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.