• From Shutdown to Restart

The Palisades Nuclear Power Plant, located on the shores of Lake Michigan in Covert Township, was originally commissioned in 1971 and operated for more than 50 years. In May 2022, the plant was permanently shut down and defueled, marking the end of its licensed operating life. Holtec Decommissioning International acquired the facility with the intention of dismantling it.

However, by late 2023, the landscape of U.S. energy demand had changed. Driven by surging consumption from advanced manufacturing, data centers, and electrification projects, Holtec reversed course and began pursuing the unprecedented goal of restarting a previously retired nuclear station. This required the withdrawal of the plant’s permanent shutdown certifications and re-establishing compliance with safety, emergency, and operational standards.

On July 24, 2025, the U.S. Nuclear Regulatory Commission (NRC) granted approval to transfer operating authority back to Palisades Energy LLC. On August 25, Holtec formally rescinded its shutdown status, reactivating operational authority. The plant is now cleared to receive nuclear fuel, with restart targeted for late 2025. This marks the first time in U.S. history that a reactor has returned from decommissioning to full operational status.

• Federal Backing and Industry Impact

The restart of Palisades has been made possible through significant federal support. The U.S. Department of Energy has already disbursed more than $335 million from a $1.52 billion loan guarantee, recognizing the project as a cornerstone of national nuclear revitalization policy. This financial backing not only secures the technical reassembly and inspections but also reflects Washington’s commitment to preserving existing nuclear capacity as a bridge to clean, reliable power.

The restart comes at a pivotal moment. Electricity demand in the United States is expected to grow sharply in the coming decade, with estimates pointing to double-digit growth by 2035. Much of this surge is tied to the energy-intensive growth of AI-driven data centers, electric vehicle production, and industrial reshoring. Palisades, with its nearly 800 MWe capacity, can provide around-the-clock baseload electricity equivalent to powering more than 800,000 homes.

Moreover, Palisades is part of a broader wave of nuclear restarts. Constellation Energy has announced plans to revive the Three Mile Island Unit 1 (now the Crane Clean Energy Center) by 2027, backed by long-term corporate clean energy agreements. NextEra Energy is exploring the restart of Iowa’s Duane Arnold plant. Taken together, these initiatives could boost U.S. nuclear capacity by approximately 7%, making nuclear a vital contributor to energy security and decarbonization.

• Future Outlook and Controversy

Looking forward, Holtec has announced plans to deploy two SMR-300 small modular reactors on the Palisades site by the 2030s, effectively doubling the site’s capacity and creating one of the first hybrid nuclear parks in the U.S. This move positions Palisades not only as a symbol of nuclear revival but also as a test bed for the integration of traditional large reactors with next-generation modular technology.

Yet, controversy surrounds the restart. Environmental groups, such as Beyond Nuclear, have criticized the project as unsafe and politically driven. Critics cite the plant’s age, potential safety risks, and alleged health impacts in surrounding communities, warning of “radioactive Russian roulette” on the shores of Lake Michigan. Supporters, however, argue that Palisades has undergone thorough review and that its restart is essential for both climate goals and regional economic stability.

The stakes are high: if successful, Palisades could pave the way for a new chapter in U.S. nuclear energy policy, demonstrating that previously shuttered assets can be restored to contribute to a low-carbon grid. Its trajectory will shape the future of nuclear investment, regulatory precedent, and the role of nuclear power in a rapidly electrifying economy.