Michigan facility eyes a late-2025 comeback, backed by a $1.52 billion federal loan that could reshape America’s clean-energy mix
The once-shuttered Palisades nuclear plant in Covert Township, Michigan, is on track to fire up again after a three-year pause. If regulators give the green light, the reborn reactor could single-handedly triple the nation’s nuclear output from previously retired capacity—an eye-catching swing in America’s push for reliable, low-carbon power.
| Key milestone | What it means for consumers |
|---|---|
| Shutdown date | May 2022, after 50 years online |
| Federal loan | $1.52 billion to modernize critical systems |
| Target restart | Late 2025—pending safety checks |
| Expected output | Up to 800 MW, enough for ~800,000 homes |
Before you ask, will that money actually make the plant safer? Officials say yes: most of the loan is earmarked for new steam generators, upgraded control software, and tougher containment seals.
A $1.52 billion federal loan will overhaul aging equipment and safety protocols
The Department of Energy’s support, announced in late 2024, marks the first time Washington has financed the revival of a decommissioned reactor. Holtec International, now running Palisades, argues the cash will cut start-up hurdles by replacing components most prone to wear. However, the U.S. Nuclear Regulatory Commission still needs to sign off on seismic tests, fuel inspections, and emergency-preparedness drills—steps no one can skip, loan or no loan.
So, what’s in it for ratepayers? Backers claim nuclear units run around-the-clock, limiting price spikes when wind or solar dip. Skeptics counter that decommissioned plants were closed for a reason—chiefly soaring maintenance bills. Expect spirited hearings this summer.
Restarting Palisades could triple national nuclear output and reshape clean energy goals
Reactivating Palisades would add roughly 800 megawatts to the grid, almost the same capacity lost when three smaller reactors retired in 2022. That matters because the Biden administration’s 2035 carbon-free power target leans heavily on keeping existing nuclear online while scaling renewables. “If we can prove Palisades can come back safely, why stop there?” asks Holtec’s CEO. Could legacy sites like Three Mile Island follow? Time will tell.
Pros and cons at a glance
- Pros
- Steady, zero-carbon base load cuts fossil-fuel reliance.
- Saves decades of sunk construction emissions by reusing infrastructure.
- High-paying local jobs return to Van Buren County.
- Cons
- Long-term waste storage remains unresolved.
- Refurbishment costs may eclipse fresh renewable builds.
- Any safety lapse would reignite public opposition overnight.
Nevertheless, momentum is building. Markets crave predictable power, and nuclear’s capacity factor routinely tops 90 percent. If Palisades clears its final hurdles, electricity consumers could feel the difference as early as winter 2026. Until then, regulators, engineers, and community leaders will be watching every weld.
Palisades is more than a comeback story; it’s a litmus test for whether dormant reactors can anchor a cleaner grid without breaking the bank—or public trust. Stay tuned.