Source · Select Committees · Science, Innovation and Technology Committee
Recommendation 19
19
Accepted
Paragraph: 106
Deferring nuclear strategic decisions risks wasted investment and increased costs.
Conclusion
It is not uncommon, in the face of an unclear strategy or unresolved internal arguments about financing, for governments to defer decisions rather than take them. But this would be the wrong course. The UK risks losing the advantage of 102 Delivering nuclear power the public investment that has already been made; as well as contributing to the ambiguity in our future energy supply; and perpetuating a level of policy risk that is likely to drive a risk premium on costs, to the detriment of the taxpayer and billpayer.
Government Response Summary
The government is actively working on several fronts to advance SMRs, including launching a Technology Selection Process, providing co-funding, developing a new nuclear National Policy Statement, and intending to consult later this year on future siting strategy and SMR financing models.
Paragraph Reference:
106
Government Response
Accepted
HM Government
Accepted
The government sees SMRs as having a crucial role to play in our future energy mix as we transition to net zero and support our energy security. GBN has launched a Small Modular Reactor Technology Selection Process (TSP) to identify those companies best able to reach a project FID by 2029, which could result in billions of pounds of public and private investment in SMRs. The Government will provide co-funding to be deployed by GBN to support the development of these selected technologies and will work with successful bidders on ensuring the right financing and site arrangements are in place. to market for new nuclear projects in addition to the TSP. The evidence received will help shape future policy and ensure that the UK’s nuclear programme is as comprehensive and inclusive as possible. We are developing a new nuclear National Policy Statement (NPS), which will cover the deployment of new nuclear power stations beyond 2025. This new NPS will take into account the changes in the nuclear landscape since the current NPS was published in 2011, including the realistic potential for deployment of advanced nuclear technologies such as SMRs. We are intending to consult later this year on the future siting strategy. In addition, GBN will work with wider Government on access to potential sites for new nuclear projects to achieve our long-term ambition. The Nuclear Energy (Financing) Act 2022 has introduced the Regulated Asset Base (RAB) funding model as an option for new-build nuclear projects in the UK. Consultation and further engagement with stakeholders in Autumn 2023 will help to confirm the most appropriate funding model for SMRs to assist their deployment for electricity generation and supply in the UK.