Congress deregulates nuclear energy

Regulators are scrambling to prepare the energy sector for a massive uptick in electricity demand due to AI.

On June 18th, Congress?passed?the Accelerating Deployment of Versatile, Advanced Nuclear Clean Energy (ADVANCE) Act. This legislation directs the Nuclear Regulatory Commission to examine and speed up its permitting process for new nuclear technologies. The legislation is now on President Biden’s desk.

In the 1950s, the U.S. led the development of nuclear energy by building 110 reactors, providing more than?one-fifth?of electricity for its citizens. However, as growth in electricity demand slowed in the 70s, we stopped building more reactors due to their high costs and we fell behind.

Times are now changing, and nuclear energy is not just coming back; it’s here to stay.

AI's hunger for knowledge is increasing the world's?appetite for electricity. Estimates?claim?that by 2028, the minimum amount of electric power to accommodate data centers equals roughly eight New York Cities.?Even though there’s a push for using renewable energy to generate electricity, the demand is too high to solely rely on it, so regulators are pinning their hopes on nuclear energy.

The global energy industry is a jigsaw puzzle. Numerous pieces compose a complex and diverse system of equipment, infrastructure, technologies, regulatory bodies, and private entities. Something that happens in one area of the puzzle has the potential to impact another area, so securing the supply chain in a power-hungry world?will be difficult.

Due to this tremendous demand, utility companies must rethink their grid operations to keep up with technological advancements and?electrification?planning.

Involving regulators in the innovation aspect of the process—in a manner that streamlines and does not burden the pace—would accelerate the commercialization of new advanced electric generation and grid technology. In the past, electric utility companies focused on mature technologies, and regulatory agencies like the NRC cautioned companies from assuming too much risk.

Failure to address the increasing electricity demand driven by AI technologies could lead to severe blackouts. Investments in upstream?natural gas?and advanced nuclear technologies are crucial, but they require government support and regulatory reforms like the new ADVANCE Act to be effective.?

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