Author: Madison Schroder
For the first time in U.S. history, a closed nuclear power plant is coming back to life! Palisades Nuclear Power Plant will receive a $1.5 billion loan from the Department of Energy to be brought back online.
Never heard of Palisades? Here is a brief history of this iconic power plant for context.
In 1966, Consumers Powers Co. announced plans for a $100 million, 800-megawatt nuclear power plant near Kalamazoo on Lake Michigan, making it America’s 20th nuclear power plant. However, anti-nuclear advocates get in the way and delay the plant opening by a year and a half. Fast forward to 1971, Palisades officially lights up the grid on New Year’s Eve!
In 1993, the NRC approved dry cask storage at Palisades, which led to lawsuits that were eventually taken up by the Supreme Court. The Supreme Court ended up siding with Palisades and allowed the spent fuel to stay on site.
Despite years of operational excellence and a license that was valid through 2031, Entergy decided to close Palisades in 2018 as part of the same “we won’t run nuclear in merchant electricity markets” strategy that factored into the closure of Indian Point in New York. Basically, between cheap natural gas and heavily subsidized renewables, nuclear plants in “deregulated” power markets were feeling the squeeze.
But was reducing expenses worth throwing away a significant portion of Michigan’s clean electricity generation and placing even greater reliance on natural gas, the least reliable fossil fuel?
In 2020, Palisades was responsible for 5.6% of Michigan’s total electricity generation and 15% of the state’s clean power. For comparison, that is equivalent to 39 times the state’s solar generation and three-and-a-half times its hydro generation. Shutting down Palisades was the equivalent of tearing down almost every wind turbine in the state.
In 2022 Holtec bought the plant to begin decommissioning. Several pro-nuclear and environmental organizations pushed back against the closure, asking them to sell it to another operator, but to no avail. In total, the closure ended 600 permanent jobs and led to the loss of over $200 million in tax revenue.
However, this will not be the end of Palisades’ story. Palisades is set to receive $1.5 billion in funds from the federal government, as well as potentially $150 million more as part of Gretchen Whitmer’s proposed budget plan. Whitmer’s office noted the ‘plant’s potential to bring back hundreds of “good-paying, high-skill jobs” while delivering carbon-free power to about 800,000 homes.’
Palisades underscores an important truth — nuclear power remains vital to a clean energy future. With the right policies, even shuttered plants can restart, resuming carbon-free generation and high-quality jobs. Nuclear continues demonstrating versatility, reliability, and environmental benefits that other sources cannot match.
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Sources:
- https://www.electric.coop/gts-collaborate-on-first-recommissioned-nuclear-plant-in-u-s-history#:~:text=Construction%20of%20the%20432%2Dacre%20Palisades%20site%20began,goals%2C%20and%20it%20was%20recognized%20by%20the
- https://www.mlive.com/news/kalamazoo/2014/08/palisades_nuclear_plant_timeli.html
- https://www.mlive.com/public-interest/2022/05/looming-nuclear-plant-closure-may-put-michigan-climate-goals-out-of-reach.html
- https://en.wikipedia.org/wiki/Palisades_Nuclear_Generating_Station
- https://thebreakthrough.org/blog/saving-palisades
