Source · Select Committees · Science, Innovation and Technology Committee
Recommendation 45
45
Deferred
Paragraph: 226
Communicate a clear financial model for initial SMR deployment, as CfD is unsuitable.
Recommendation
If a single supplier of SMRs were to be available, either through Government choice or following the Generic Design Assessment process, the CfD auction model will not be suitable. As part of a clear and specific strategy for SMRs, the Government should come to a view quickly on what financial model would be available for the initial deployment and communicate this clearly to developers.
Government Response Summary
The government stated that Great British Nuclear's technology selection process is not limited to a single supplier and that the Regulated Asset Base (RAB) model is a promising option for SMRs. A consultation on "alternative routes to market," including the appropriate business model for SMRs, was planned for Autumn 2023.
Paragraph Reference:
226
Government Response
Deferred
HM Government
Deferred
development of SMR programmes in the UK. In July 2023, Great British Nuclear launched a technology selection process (TSP) to select the best Small Modular Reactor technologies from around the world and is not limited to a single supplier. At the same time, the Government committed to consult in the autumn on alternative routes to market for new nuclear projects, in addition to that provided by the TSP. The government has also announced that The Future Nuclear Enabling Fund has shortlisted applications to accelerate advanced nuclear technologies business development in the UK including supporting advanced nuclear technology designs through Generic Design Assessment (GDA). The Nuclear Energy (Financing) Act 2022 has established the Regulated Asset Base (RAB) funding model as an option for new nuclear projects, including SMRs, and this is a first across the world. The RAB model is a promising model for SMRs. The Alternative Routes to Market consultation, due for publication in Autumn 2023, is an opportunity to take views from the sector on the appropriate business model for SMRs. This will help to deliver a coordinated nuclear programme to meet the UK’s ambitions on energy security.