Constellation Energy (NASDAQ:CEG) and several major U.S. utilities are expected to be key beneficiaries of a new federal initiative to accelerate nuclear power development, according to analysts at BofA Securities.

The U.S. government recently announced a strategic partnership with Westinghouse and Cameco aimed at building a new wave of nuclear generation facilities. Early reports indicate plans for up to $80 billion in new reactors using Westinghouse’s AP1000 technology. The Department of Commerce will play a central role in coordinating financing, loan guarantees, permits, and regulatory approvals.

According to BofA analysts Ross Fowler and F. Paul Cole, the move marks a major policy shift away from the government’s prior “technology-agnostic stance” toward actively promoting specific reactor designs, particularly the AP1000 and BWRX-300 models, both of which use low-enriched uranium fuel. The analysts noted that this mirrors the standardized design strategies successfully adopted in other countries, which help reduce per-unit construction costs.

The analysts added that a build-own-transfer model will likely be used, where utilities with existing nuclear operations will become the long-term owners and operators, rather than Westinghouse itself. Utilities seen as potential winners from this approach include Constellation Energy (NASDAQ:CEG), Dominion Energy (NYSE:D), Duke Energy (NYSE:DUK), Entergy (NYSE:ETR), NextEra Energy (NYSE:NEE), and Southern Company (NYSE:SO).

The U.S. nuclear expansion plan also builds upon recent trade agreements with the U.K., South Korea, and Japan, which aim to enhance cooperation on fuel processing, engineering, and critical equipment manufacturing. BofA estimates that these partnerships could add hundreds of billions of dollars to the overall nuclear development pipeline, reinforcing America’s position in the global clean energy race.

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