GHG Emissions, Commercial, Sourcing Renewables  -  September 20, 2024

Microsoft Signs Nuclear PPA

Microsoft announced the signing of a 20-year power purchase agreement that will pave the way for the launch of the Crane Clean Energy Center (CCEC) and restart of Three Mile Island Unit 1.

The agreement was signed with Constellation, allowing  Microsoft to purchase energy from the renewed plant as part of its goal to help match the power its data centers in PJM use with carbon-free energy.

Three Mile Island operated at industry-leading levels of safety and reliability for decades before being shut down for economic reasons five years ago.

The Unit 1 reactor is located adjacent to TMI Unit 2, which shut down in 1979 and is in the process of being decommissioned by its owner, Energy Solutions. TMI Unit 1 is a fully independent facility, and its long-term operation was not impacted by the Unit 2 accident. 

To prepare for the restart, significant investments will be made to restore the plant, including the turbine, generator, main power transformer, and cooling and control systems. Restarting a nuclear reactor requires U.S. Nuclear Regulatory Commission approval following a comprehensive safety and environmental review, as well as permits from relevant state and local agencies.

Additionally, through a separate request, Constellation will pursue license renewal that will extend plant operations to at least 2054. The CCEC is expected to be online in 2028.

"This agreement is a major milestone in Microsoft's efforts to help decarbonize the grid in support of our commitment to become carbon negative. Microsoft continues to collaborate with energy providers to develop carbon-free energy sources to help meet the grids' capacity and reliability needs," said Bobby Hollis, VP of Energy, Microsoft, in a statement.  

Constellation purchased TMI Unit 1 in 1999. Before it was retired prematurely for economic reasons in 2019, the plant had a generating capacity of 837 megawatts.

In its last year of operation, the plant was producing electricity at maximum capacity 96.3% 

The plant will be renamed the Crane Clean Energy Center in honor of Chris Crane, who was CEO of Constellation’s former parent company.

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