Meta Inks New Long-Term Nuclear, Solar PPAs with Constellation and AES
Meta has entered into a landmark 20-year power purchase agreement (PPA) with Constellation Energy to procure the entire output of the Clinton Clean Energy Center, a nuclear power plant in Illinois. This is a strategic move designed to support Meta's escalating energy demands driven by artificial intelligence (AI) and other high-computation technologies, while also ensuring the continued operation of a nuclear facility that was facing potential closure. Meta has already stated that the PPA is not going to directly support a specific data center.
Moving Nuclear Power Forward
The Clinton Clean Energy Center, which began operations in 1987, had been facing financial challenges and had been slated for closure in 2017.
A temporary reprieve in the form of a state-funded zero-emission credit program provided temporary relief, but this support program is set to expire in 2027.
Meta's long-term commitment, with its 2027 start date for the PPA, effectively replaces the expiring state subsidies, ensuring the plant's continued operation.
The plant currently generates 1,121 MW of energy and the PPA includes plans to increase output by 30 MW, as part of the upgrade, maintenance, and development cycle for the facility.
Constellation made the news last September with the announcement that they would be working with Microsoft to restart the shut down Unit 1 at Three Mile Island, an 800 MW facility that was closed due to not being financially viable by 2019.
Joe Dominguez, president and CEO, Constellation, with the benefit of hindsight, pointed out the shortsightedness of that plant closure and the value of keeping the Clinton Clean Energy Center operational, saying:
Last year, Constellation’s announced plan to restart the Crane Clean Energy Center became national news, but despite all of the interest and overwhelming support, a key question was missed: why did we let such a valuable plant close in the first place? We all know that the closure cost our community jobs, tax revenue, more pollution and higher prices. We are proud to partner with Meta because they asked that important question, and even better, they figured out that supporting the relicensing and expansion of existing plants is just as impactful as finding new sources of energy. Sometimes the most important part of our journey forward is to stop taking steps backwards.
Jobs, Power, and Community
Instead of a shutdown costing the community jobs and revenue, Meta's PPA with Constellation will also facilitate a 30-megawatt increase in the Illinois plant's output through planned upgrades. The agreement and its impact on the plant also secures 1,100 high-paying local jobs, an increase over the 530 jobs currently in place, and will contribute $13.5 million annually in tax revenue, along with $1 million in charitable donations over five years. The charitable donation program will support workforce development, social services, education, and local nonprofits in Clinton and surrounding communities.
Urvi Parekh, Head of Global Energy at Meta, said:
We are excited to partner with Constellation and the Clinton community to ensure the long-term operations of the nuclear plant, add new capacity, and help preserve over 1,000 jobs. Securing clean, reliable energy is necessary to continue advancing our AI ambitions. We are proud to help keep the Clinton plant operating for years to come and demonstrate that this plant is an important piece to strengthening American leadership in energy.
SMR Potential at Clinton
The power from the Clinton plant will be added to the grid in the Midcontinent Independent System Operator’s (MISO) zone four territory, covering central and southern Illinois.
And perhaps more importantly, the long-term commitment to continued operation is encouraging Constellation to consider expanding operations on the site, with the company looking at strategies to expand the early site permit, or potentially join the next generation of power production by seeking a permit from the NRC to develop SMR [small modular reactor] or other Advanced Nuclear Reactor technologies on-site.
Clinton Mayor Helen Michelassi, who has seen the value of the plant and its jobs and tax revenue for her community, said:
Constellation’s Clinton nuclear plant has long been an important part of our local economy, supporting a vibrant community with great jobs, excellent schools and well-resourced fire and police departments. While many other communities are losing jobs and tax revenues, Meta is investing in our future, preserving good-paying jobs, and driving economic development for decades to come.
AES and Meta Sign Long-Term PPAs to Deliver 650 MW of Solar
Meanwhile, Meta has also now entered into two long-term Power Purchase Agreements (PPAs) with AES Corporation to procure 650 MW of solar energy from projects in Texas and Kansas.
These agreements aim to power Meta's data centers within the Southwest Power Pool market, aligning with the company's commitment to 100% renewable energy and net-zero emissions across its value chain by 2030.
While no explicit details have been provided, the solar projects are expected to bring economic benefits to local communities, including the creation of hundreds of construction jobs and significant tax revenue for schools and counties.
Andrés Gluski, AES President and Chief Executive Officer, is encouraged by the partnership with Meta, saying:
AES is proud to partner with Meta to deliver reliable and affordable renewable energy that supports their data center growth and ambitious sustainability goals. By providing energy solutions that offer fast time-to-power and low-cost electricity, we continue to be the partner of choice for companies, like Meta, at the forefront of artificial intelligence innovation.
Texas Legislature Moves Toward Encouraging Nuclear Power in the State
The Texas Legislature has recently approved House Bill 14, establishing a $350 million taxpayer-funded grant program to promote nuclear energy development in the state.
This initiative aims to position Texas as a leader in advanced nuclear technologies, particularly focusing on SMRs. This is, however, a very much “glass half full” result as the original pitch for the legislation suggested a $2 billion grant program.
The Governor's Office will oversee the nuclear energy fund and the grant program. This includes hiring a coordinator to assist qualifying programs in navigating federal regulations, aiming to expedite the permitting process.
SMR Nuclear a Moving Target
At this point in time, it does seem that the permitting process for next generation reactors is a bit of a moving target as there have been reports of pressure being put on the Nuclear Regulatory Commission to both simplify and tighten up the permitting process.
Approximately 80% of the $350 million fund is designated to reimburse construction costs for operational nuclear reactors. The remaining funds are allocated for research and development initiatives.
The focus for all of the funding is supposed to be targeted at the development of SMR facilities within the state.
Texas Governor Greg Abbott believes that the funding would bolster Texas' nuclear manufacturing capacity, rebuild a domestic fuel cycle supply chain, and train the future nuclear workforce, going a long way to making Texas a leader in the nuclear power industry.
The Texas nuclear office is expected to be operational by the end of 2025, though results from the funding are dependent on the time scale of the SMR industry, which is still, most realistically, looking at 2030 before the first commercial power plants are operational.
About the Author
David Chernicoff
Voices of the Industry
