Amazon and Constellation Energy announced on 30 September a 20-year agreement for 690 megawatts of nuclear power from Maryland’s Calvert Cliffs plant, which they say will enable more than $3 billion in infrastructure investment.
Key points
- The 690 megawatts include approximately 190 megawatts of planned new capacity, expected online between 2030 and 2032.
- A separate retail agreement covers Amazon operations in the 13-state PJM market.
- Calvert Cliffs power will continue to enter the regional grid rather than go directly to Amazon facilities.
Amazon’s 690-megawatt commitment spans 20 years
The power purchase agreement includes the approximately 190 megawatts that Constellation expects to add at Calvert Cliffs. That planned capacity is part of the contracted 690 megawatts. Constellation and Amazon also signed a related retail electricity supply agreement for Amazon operations across the 13-state PJM market.
The companies say the retail arrangement will help Amazon manage electricity costs at its facilities in the region. Power generated at Calvert Cliffs will continue to enter the PJM grid, rather than travel through a dedicated connection to Amazon sites. The purchase commitment and the retail supply agreement therefore serve different parts of Amazon’s regional electricity arrangements.
Large technology companies are seeking reliable electricity for expanding data centres and artificial intelligence infrastructure, Fox Business reported. Amazon has also invested $500 million in advanced nuclear developer X-energy and reached an agreement with Energy Northwest to support small modular reactor development in Washington state.
At Calvert Cliffs, Amazon’s commitment concerns output from an operating plant as well as a proposed increase in that plant’s capacity. The X-energy investment and Energy Northwest agreement concern advanced reactor development, Fox Business reported. The Calvert Cliffs contract gives Constellation a long-term customer for power that will continue to flow through the regional market.
Calvert Cliffs investment includes 190 megawatts
Constellation says the agreement will enable more than $3 billion of infrastructure investment in Maryland. Its plans include improvements across the 1,790-megawatt Calvert Cliffs facility and approximately 190 megawatts of additional generating capacity, which it expects to come online between 2030 and 2032.
The generating increase is planned for the existing facility, rather than a new reactor, Seeking Alpha reported. Its timing matters to the investment: Amazon’s agreement runs for 20 years, while the planned additional capacity is expected to begin operating several years after the contract was announced. The agreement also supports improvements throughout the current plant, according to Constellation.
Calvert Cliffs is in Lusby, on the western shore of the Chesapeake Bay. Constellation says the plant produces approximately 80% of Maryland’s clean energy and enough electricity to supply the equivalent of more than 1.3 million homes. It employs more than 800 people and contributes about $21 million a year in taxes supporting local public services, the company says.
Constellation seeks longer Calvert Cliffs licences
Constellation says Amazon’s long-term commitment will help provide the revenue certainty needed to seek another 20 years of operating licences at Calvert Cliffs. The company also says the agreement will help it pursue development of additional clean-energy plants at the site. Those prospective projects are separate from the approximately 190-megawatt increase included in the power purchase agreement.
Joe Dominguez, Constellation’s chairman, president and chief executive officer, said Amazon’s commitment supports the plant’s continued operation and provides a basis for further investment there and in advanced nuclear technology. Kerry Person, vice president of AWS Global Operations and Data Center Delivery, said the agreement would sustain the operation and expansion of the Maryland plant.
The proposed licence extension concerns Calvert Cliffs’ two existing reactors. Their current operating licences run through 2034 and 2036, Fox Business reported.
