California Gov. Newsom approves $1.4B loan to keep Diablo Canyon Nuclear plant running to 2030
California Governor Gavin Newsom has authorized the extension of operations at the Pacific Gas and Electric Company-owned Diablo Canyon Power Plant (DCPP) in San Luis Obispo County for five years beyond the current license expiration in 2025.
The extension was desired because California’s grid, quickly shifting to intermittent renewables, is in need of baseload power. Nuclear energy also does not emit greenhouse gases.
PG&E still requires the necessary U.S. Nuclear Regulatory Commission (NRC) licenses and other state regulatory approvals.
The state will also provide a loan of up to $1.4 billion to the utility to support the extension. The Senate Bill 846, which authorises the extension of operations, also directs the utility to secure funds from the U.S Department of Energy and other federal funding to pay back the loan and lower costs for customers.
“PG&E is committed to California’s clean energy future. As a regulated utility, we follow the energy policies of the state. We are proud of the role Diablo Canyon plays in providing safe, reliable, low-cost and carbon-free energy to our customers and Californians,” PG&E CEO Patti Poppe said in a statement. “We will do our part to help the state achieve its energy reliability and decarbonization goals, while continuing to run one of the top performing plants in the country. The team of people at Diablo Canyon delivers for our hometowns every day through their industry-leading commitment to safe operations.”
Diablo Canyon power plant can generate 2.2 GW of electricity at capacity and provides close to a fifth of the state’s zero-carbon power generation.
California opted to close the nuclear plant as it transitions to a goal of 100 percent renewables by 2050. A heat wave, wildfires, rolling blackout dangers and load conservation requests are pushing state energy leaders to consider holding on to nuclear for a long while.
Diablo Canyon Nuclear power plant's units went into operations in the 1980s.
Nuclear energy accounts for 20 percent of the U.S. electricity resource mix and more than half of the nation's carbon-free power.
