New York State may seek federal loan for ambitious nuclear plan

Axios

a day ago

The New York Power Authority plans to approach the Energy Department's loan office about the state's new nuclear energy plans, president and CEO Justin Driscoll tells Axios.
Why it matters: The comments help reveal how the NYPA is thinking about options for launching the state's first reactor construction in decades.
Driving the news:"We are exploring how to best utilize DOE programs, including the Loan Programs Office," Driscoll said.
"We will definitely be reaching out to them, and hopefully be meeting with them in the near future," he said.
Energy Secretary Chris Wright has signaled plans to focus LPO, a deep-pocketed program, on nuclear tech as he narrows its focus.
Catch up quick: Gov. Kathy Hochul this week tasked NYPA with developing at least a gigawatt — enough to power roughly a million homes — of new nuclear somewhere upstate.
Right now it's wide open, with no decisions on tech — say, multiple SMRs vs. gigawatt-size designs like the Westinghouse AP1000 — or locations and partners.
What's next: NYPA will soon issue formal solicitations for community interest, financial partners, and technologies, Driscoll said.
It's also just begun a search for a senior VP for nuclear, a new role at the authority.
Yes, but: Driscoll made clear NYPA isn't starting from scratch.
"We've actually been at this for about a year now," he said, citing discussions in forums such as the Electric Power Research Institute, where he's a board member.
"We're obviously starting with a pretty good foundation of knowledge around the different technologies and who's working in this field," he said.
NYPA has longstanding relationships with Ontario Power Generation, which is building new nuclear generation. The two utilities share operations of a major hydropower dam across the St. Lawrence River.
He also noted NYPA's ongoing work to develop utility-scale solar projects, and its past ownership of two New York nuclear plants sold in 2000.
What we're watching: Driscoll sees tailwinds from President Trump's recent executive orders on nuclear power.
"It's a good indication of what the priorities of the administration are, and where they want to see timelines accelerated," he said.
The other side: " Hochul's decision to step in based on promises from Donald Trump shows just how unserious she is about New Yorker's energy bills and climate future," the Public Power NY Coalition said in a statement.
"NYPA should be laser focused on rapidly scaling up their buildout of affordable solar and wind which is the only way to meet the state's science-based climate goals and lower energy bills."
The big picture: The state plan comes as U.S. power demand is rising thanks to data centers, EVs, new manufacturing, cooling needs and more.
Tech giants have been striking power purchase deals with reactor operators and entering longer-term agreements to support next-wave designs.
Driscoll said NYPA hasn't been speaking with hyperscalers about the plan yet, and that it's "too early to tell" whether they'll be involved.
But he also said: "There is no question that the data centers will be interested in this generation, because, as we all know, it's firm, baseload, 24/7 power, which is what they're looking for."