Google and Constellation have agreed to add 890 megawatts of new nuclear power to the PJM grid. Constellation's stock initially jumped by approximately 12% due to this news, but does news like this make a real difference?
The largest nuclear power operator in the United States is making a deal with one of the world's largest companies to add new capacity. Now, this additional capacity comes 100% through upgrades to the existing capacity.
These are existing nuclear power plants, and that approximately 800 megawatts is distributed across 11 reactors. So what they are essentially doing is investing over $4 billion in these upgrades.
Therefore, these are significant improvements to these stations. It primarily concerns the modernization of steam generators, turbine interiors, and other infrastructure and operational elements at these stations.