Diablo Canyon is emissions-free, reliable — and can lower energy costs if we do it right

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OPINION — California is weighing an important decision about the future of Diablo Canyon. A recent independent analysis by Massachusetts Institute of Technology suggests that operating the plant through 2045 could save billions of dollars in electricity system costs. 

California has set some of the world’s most ambitious climate and clean energy goals. Achieving them while maintaining a reliable, resilient and affordable electric grid has become one of the state’s defining energy challenges, as meeting them will require building enormous amounts of new clean energy infrastructure over the coming decades. At a time when affordability is increasingly top of mind, making smart use of the valuable carbon-free resources the state already has is more important than ever.

Diablo Canyon, the state’s only operating nuclear power plant, is one of those resources. Supplying nearly 9% of the state’s electricity, it is California’s largest single source of carbon-free electricity and provides around-the-clock power that complements a growing fleet of renewable energy generation and battery storage. In 2022, amid mounting concerns about California’s electricity reliability, Gov. Gavin Newsom and the legislature extended Diablo Canyon’s operations rather than allow the plant to shut down. Without further action, it is still scheduled to retire by 2030. 

Now, state lawmakers are faced with a decision about further extending Diablo Canyon’s operations after the Nuclear Regulatory Commission independently renewed the plant’s operating licenses for both reactors through 2045 based on thorough environmental and safety reviews. 

As an environmental organization that cares about both the environment and the economy, we believe California has an opportunity to realize the full value of both, if an extension is designed to maximize its public benefits.

MIT’s Center for Energy and Environmental Policy Research conducted an independent review of the economics extending Diablo Canyon operations from 2030 to 2045. The result of their review was unequivocal. Extending Diablo Canyon’s life to 2045 can reduce the cost of electricity in California’s electricity system by $7 billion to $20 billion. These savings come from avoiding costlier investments in replacement generation and transmission, reducing operation of fossil energy plants, and continuing to operate an existing plant whose future costs are primarily fuel and operating expenses. 

These findings reinforce what many energy experts have long understood: Preserving an existing source of around-the-clock, carbon-free electricity can be one of the most cost-effective ways to support a clean energy transition.

California will need to deploy significant amounts of new solar, wind, storage and transmission. Renewable energy will be the backbone of the future electric grid; even with Diablo Canyon online, renewables will make up almost 95% of the generation portfolio by 2045. Diablo Canyon can complement these resources and provide the state greater flexibility as it builds out the remainder of its clean energy portfolio. 

At a time when rising electricity costs are placing a growing burden on California households and businesses, the economic case for extending Diablo Canyon is compelling. The opportunity before state lawmakers is to ensure Californians realize the full value that extending Diablo Canyon can provide.

Ashley Arax is the senior California policy manager at Clean Air Task Force.