In 2014, nuclear power provided around 8.5 per cent of California’s power mix. The energy generation shortfall incurred by this deal will be replaced by renewables, energy efficiency and storage.
The announcement is the latest from a series of nuclear operators moving to shut reactors, this has been largely due to low gas prices making it uneconomic to keep certain nuclear plants open – especially ones needing systematic repairs. For instance in 2013, the owners of California’s San Onofre nuclear power plant announced its retirement following the detection of a leak in a steam generator tube.
“California’s energy landscape is changing dramatically,” PG&E Chief Executive Tony Earley said in a statement. He added that nuclear power was “an important bridge strategy to help ensure that power remains affordable and reliable and that we do not increase the use of fossil fuels while supporting California’s vision for the future”.