Amazon Buys Record 690 Megawatts from Calvert Cliffs Nuclear Plant
Constellation Energy has signed a 20-year power purchase deal with Amazon to supply 690 megawatts of energy from its Calvert Cliffs nuclear plant in Maryland. The agreement will allow Constellation to spend $3 billion on upgrades at the facility, which will increase its capacity by approximately 190 megawatts and provide enough power for about 147,000 American homes.
The deal also provides revenue certainty for Constellation, enabling it to relicense the plant for another 20 years. Licenses for the two reactors expire in 2034 and 2036, according to the Nuclear Regulatory Commission.
Constellation's senior executive vice president and chief external affairs and growth officer, David Dardis, said that this agreement is 'a huge step' towards deciding to continue operating the facility for another two decades. He also stated that without an agreement like this, companies have to make projections about future power prices, which can be uncertain.
The energy from Calvert Cliffs will still flow onto the regional grid for all customers to use, and Amazon has a degree of certainty about its power costs and supply in the region over the next few decades. The agreement demonstrates how private investment can strengthen critical energy infrastructure, according to Constellation's chairman, president, and CEO, Joe Dominguez.