California willing to keep nuclear plant running to keep lights on

April 29 (Reuters) – California is willing to keep its last remaining nuclear power plant running to maintain electrical reliability as it moves away from fossil fuels, a spokesman for Governor Gavin Newsom said on Friday.

The declaration marked a sea change for the state, which has been planning since 2016 to replace Diablo Canyon’s vast generating capacity this decade with other carbon-free energy sources such as solar, battery storage and wind.

It followed a Los Angeles Times interview with the governor published Friday in which he said the state “would be remiss” not to apply for funding under a new $6 billion federal program intended to help nuclear power plants stay open. . read more

California has a goal of producing all of its electricity from clean sources by 2045, but has faced challenges with its transition away from fossil fuels, including rolling blackouts during a summer heat wave in 2020.

Diablo Canyon provided 8.5% of California’s overall energy needs in 2020 and is the state’s leading source of emission-free electricity.

“The governor supports keeping all options on the table to ensure we have a reliable network,” Newsom spokeswoman Erin Mellon said in an emailed statement. “This includes considering an extension to Diablo Canyon, which continues to be an important resource as we transition to clean energy.”

Newsom supports a long-term closure of the plant, Mellon added.

If it requests a portion of those funds, the PG&E Corp (PCG.N)-owned facility could operate beyond its 2025 retirement date.

The decision to apply for the funds ultimately rests with the plant owner, the statement said.

When asked if it planned to apply for the funds, PG&E said it was “always open to considering all options to ensure a continuous supply of safe, reliable and clean energy to our customers.”

The utility has discussed the plant’s eligibility for financing with the state, but has not been directed to do so, according to spokeswoman Lynsey Paulo.

Applications for the first round of funding from the Department of Energy must be submitted by May 19.

Keeping the floor plan open would not be an easy decision.

Reactor operating licenses would have to be renewed by the Nuclear Regulatory Commission, which is typically a multi-year process.

In November, a spokesman for the California Public Utilities Commission (PUC) said the renovation would require upgrades to help the plant withstand earthquakes and make changes to its cooling systems. Those investments would likely cost more than $1 billion.

The PUC approved the removal of the plant in 2018, a decision that was supported by several unions and environmental groups. The agency did not immediately respond to a request for comment Friday.

California’s challenges with grid reliability came up again this week. Newsom warned that 4,350 megawatts of planned solar power and battery storage capacity the state is relying on to come online between 2022 and 2024 may be delayed due to a Commerce Department investigation that could result in steep tariffs on panel imports. solar.

“Delays and outages of this magnitude hamper our efforts to combat climate change and threaten our ability to maintain energy reliability,” Newsom said in a letter to Commerce Secretary Gina Raimondo on Thursday, urging an early resolution of the investigation.

Information from Nichola Groom; Edited by Aurora Ellis, Kevin Liffey, and Bill Berkrot

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