Reviving Nuclear: Palisades Power Plant to Resume Operations, A U.S. First

The Palisades Nuclear Power Plant in Covert Township, Michigan, is poised to become the first U.S. commercial nuclear reactor to resume operations after being decommissioned. This unprecedented move marks a significant shift in the nation's energy strategy, emphasizing the revitalization of nuclear power to meet increasing electricity demands and carbon reduction goals.

After more than 50 years of service, the Palisades plant ceased operations in May 2022. Holtec International acquired the facility in June 2022, initially planning for its decommissioning. However, in late 2023, Holtec announced intentions to restart the plant, aiming to bring it back online by the fourth quarter of 2025.

In September 2024, the U.S. Department of Energy (DOE) finalized a $1.52 billion loan guarantee to support the plant's restoration and resumption of service. By August 2025, the U.S. Nuclear Regulatory Commission (NRC) approved Holtec's request to transition the plant from decommissioning back to operational status, authorizing it to receive nuclear fuel and prepare for restart. As of September 2025, the DOE has disbursed approximately $491 million of the loan to Holtec, with the most recent disbursement of nearly $156 million announced on September 16, 2025.

Holtec plans to restart the 800-megawatt plant by the fourth quarter of 2025, pending final inspections and regulatory approvals. Once operational, Palisades is expected to provide carbon-free electricity to over 800,000 households, enhancing grid reliability in Michigan.

In addition to restarting the existing plant, Holtec has partnered with Hyundai Engineering & Construction to build two small modular reactors (SMRs) at the Palisades site. This initiative is part of a broader plan to deploy a 10-gigawatt fleet of SMRs across North America by the 2030s.

The revival of the Palisades plant signifies a potential shift in the U.S. energy landscape, emphasizing the role of nuclear power in achieving carbon-free electricity goals. The plant's restart is expected to create jobs, stimulate local economies, and contribute to energy security. However, the project has faced opposition from critics concerned about safety and environmental impacts.

The NRC has been petitioned to establish a standardized process for returning decommissioned plants to operational status. This petition underscores the need for clear regulatory frameworks as more plants consider recommissioning.

The DOE's substantial financial support reflects the federal government's commitment to revitalizing the nuclear industry as a means to meet increasing energy demands and reduce carbon emissions. This move aligns with broader trends of increasing interest in nuclear energy as a carbon-free electricity source.

The planned restart of the Palisades Nuclear Power Plant represents a significant development in the U.S. energy sector, highlighting the complexities of energy policy, regulatory processes, and societal perspectives on nuclear power.