Just weeks before leaving office, Biden announces costly plan to triple U.S. nuclear capacity

The Biden Administration on Tuesday presented an ambitious roadmap to triple U.S. nuclear capacity by 2050. However, the high expense involved in this expansion could raise concerns, both because of its impact on the federal budget and doubts about its economic viability.

Tripling nuclear capacity: ambitious goals, high costs

The plan sets a target of 200 gigawatts of new nuclear capacity by 2050, a significant increase compared to 2020 levels. The strategy calls for the construction of new modular plants, both large and small, as well as upgrades to existing reactors and the restart of decommissioned facilities. By 2035, the roadmap expects to have added 35 gigawatts, with sustained production of 15 gigawatts per year by 2040.

Although the administration defends this project as part of its strategy toachieve zero net emissions of greenhouse gases by 2050, the associated high cost could generate skepticism.

Recent experience in Georgia, with the completion of the second of two new nuclear reactors, highlights the financial risks of these projects. These are the first nuclear reactors built in the United States in decades and, although they finally went into commercial operation this year, cost more than $30 billion (more than doubling their original budget) and suffered delays of several years from what was planned.

The challenge of financing nuclear expansion

Biden's nuclear plan depends on the allocation of new budgetary resources, as current federal authorities do not have sufficient funds to cover the projected expansion. The administration has indicated that the initiative will generate hundreds of thousands of high-paying jobs in building and operating the plants, but the cost of creating them is considerable. In addition, robust supply chains will be needed for nuclear fuel and critical components, which could further increase public spending.

Funding is a sensitive issue that leaves it up to Congress whether or not to allocate the necessary funds, a task that could face resistance given concerns about the growing deficit and economic impact. Lawmakers from both parties have shown support for the deployment of nuclear power, but the debate over how to fund it persists, especially in an uncertain economic context.

Political uncertainty and continuity of the plan

Biden's announcement comes at a time ofpolitical transition, with Donald Trump as president-elect for 2025. Although Trump has voiced support for building new nuclear reactors during his campaign, there is uncertainty over whether his administration will continue with the goal of zero emissions by 2050, a key component of Biden's strategy. Any change in energy policy could affect long-term project funding and implementation.