United Kingdom Nuclear Power to Help UK Shift to Clean Energy

Nuclear energy is a key component of the UK’s plans to achieve energy security and net zero emissions with a target goal of deploying up to 24 GW of civil nuclear power generation by 2050 - 25% of projected UK electricity demand. The past year has witnessed a focus on an accelerated shift to clean energy to address climate change concerns and to increase energy independence and security through nuclear and renewable sources. Realizing that wind and solar will not be sufficient to generate the energy it needs, the UK government recently announced plans to classify nuclear power as “environmentally sustainable” and launched Great British Nuclear (GBN) as an umbrella initiative to support the nuclear industry and oversee all future nuclear deployment including selections of sites and technologies.

Today, nuclear power provides 13-15% of UK electricity. All operating nuclear plants are owned and run by French government-owned Électricité de France (EDF).  The UK government is decommissioning older nuclear sites while also building two new EDF Generation III+ EPR reactors, though construction has been repeatedly delayed.

The UK government aims to attract further investment in the civil nuclear sector. In 2021, the government dedicated £120 million (approx. $146) to create the Future Nuclear Enabling Fund (FNEF) to accept private sector proposals (now closed, with selection of winners and monetary allocations forthcoming). By reclassifying nuclear as environmentally sustainable, nuclear energy projects will be eligible for the same investment incentives as renewable energy.

Great British Nuclear may offer a new opportunity for firms to enter the UK nuclear energy market with greater support. GBN will start by holding a competition for small modular reactors (SMR) this year, with the selected designs having the potential for government funding for further development. Other possible projects are being considered across a range of nuclear technologies, from Advanced Modular Reactors (AMR) to gigawatt-scale reactors.

The UK is also expected to introduce a new regime for fusion technology to provide regulatory clarity and support growth in the fusion industry. One of the current proposals is to ensure that fusion sites do not have the same site licensing requirements as nuclear fission sites.

For information or updates on the UK nuclear energy sector, please contact Rachel Fefer, Commercial Specialist.