Amazon signs 20-year nuclear deal at Calvert Cliffs

Constellation said the Amazon agreement covers 690 megawatts, funds more than $3 billion in plant upgrades and enables roughly 190 megawatts of new capacity in the 2030–2032 window.

Aerial photo of two nuclear containment domes, turbine buildings and a shoreline substation at Calvert Cliffs.

Photo: Calvert_Cliffs.jpg : en:User:Jbs666 derivative work: MutantMonkey, CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0/), via Wikimedia Commons (source)

Constellation Energy and Amazon on Wednesday, Sept. 30, announced a 20-year power purchase agreement tied to Maryland's Calvert Cliffs Clean Energy Center that the companies say will support more than $3 billion in plant investment and roughly 190 megawatts of added generation scheduled to enter service in the 2030–2032 window, according to a Constellation news release.

The agreement covers 690 megawatts of power from the plant, including the planned uprate, Constellation said. Calvert Cliffs is Maryland's only nuclear plant. Constellation described the facility as a 1,790-megawatt station that would rise to about 1,980 megawatts after the upgrade. The parties also entered a related retail supply agreement for Amazon operations in the 13-state PJM Interconnection market, the release said.

Grid power, not a private wire

All electricity from Calvert Cliffs will continue to flow onto the PJM regional grid rather than feed a dedicated Amazon data center on site, Constellation said. David Dardis, Constellation's senior executive vice president and chief external affairs and growth officer, told Maryland Matters that nothing in the deal changes that arrangement, while giving Amazon longer-term certainty on regional power costs and supply.

Amazon Web Services withdrew a proposed hyperscale campus next to Calvert Cliffs in August after local opposition, Maryland Matters reported. Dardis said Constellation remains open to a large customer at the site only in partnership with Calvert County and other stakeholders, and that "nothing is in the works" now.

Kerry Person, AWS vice president of global operations and data center delivery, said in the Constellation release that the deal "sustains the continued operation and expansion of Maryland's largest source of carbon-free energy, supports hundreds of jobs, and brings significant new generation to the regional grid."

Relicensing and advanced nuclear

Constellation said Amazon's commitment helps provide revenue certainty to seek another 20 years of operating licenses and to evaluate new clean generation at the site, including possible small modular reactors. Unit licenses expire in 2034 and 2036, Maryland Matters reported, citing Nuclear Regulatory Commission records.

Joe Dominguez, Constellation's chairman, president and CEO, said the agreement "demonstrates how private investment can strengthen critical energy infrastructure" and creates a foundation for future investment in the facility and advanced nuclear technologies.

Per Constellation, Calvert Cliffs supplies about four-fifths of Maryland's clean power, has a workforce above 800 and pays roughly $21 million annually in local taxes. Maryland Matters noted that the state still imports most of the power it uses through PJM.

What's next

Constellation said the ~190-megawatt uprate is planned for 2030–2032. Dardis told Maryland Matters the company will likely seek other long-term contracts in Maryland, including with utilities that want to hedge power costs, and that evaluating SMRs at Calvert Cliffs depends on large customers remaining engaged.

Sources

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