New era for nuclear: UK to deploy Small Modular Reactors in a bid to decarbonise the country’s energy grid

Nuclear energy to be deployed in a bid to decarbonise the UK energy grid

The United Kingdom has announced plans to ‘rip up rules to fire-up nuclear power’ by lifting planning restrictions relating to the construction of new nuclear power stations. Currently nuclear development is restricted to just eight sites across England and Wales, with the labour-led Government now seeking to change these planning restrictions to attract private investment into nuclear energy. The government is making a particular drive for the deployment of Small Modular Reactors (SMRs) which can be used in locations unsuitable for large power plants.

The proposals form a wider part of the UK’s push to decarbonise the power network, with the Government aiming for 95% of the UK’s electricity mix to come from renewables, nuclear, and gas with carbon capture by 2030. In their entirety, the reforms aim to boost energy security, create jobs and facilitate the transition to cleaner energy sources, as well as encourage investment in the nuclear sector and accelerate timelines for nuclear projects.

What are Small Modular Reactors?

The IAEA (International Atomic Energy Association) defines Small Modular Reactors (SMRs) as “Advanced nuclear reactors that have a power capacity of up to 300 MW(e) per unit, which is about one-third of the generating capacity of traditional nuclear power reactors.”[i]

These devices are not only a fraction of the size of a conventional nuclear power reactor, but their modular design means that their systems and components can be factory-assembled and transported as a unit to a location for installation, this makes them more cost-effective and offer time-savings in their deployment.

Further, given their smaller footprint, SMRs can be sited on locations not suitable for larger nuclear power plants. According to the IAEA, repurposing coal plants with SMRs could be one way to support fast roll-out. Their generation capacity, between 200 MWe and 400 MWe, is similar to that of a typical coal fired plant, therefore these SMRs could be deployed to use existing grid connections on decommissioned coal powerplant sites. Benefits of such proposals include avoiding the necessary land acquisition for the SMR plant, the presence of existing water sources, established grid connections, as well as rail and road connectivity[ii].

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Source: IAEA[iii]

A government competition to develop SMRs was previously announced by Conservative Chancellor Jeremy Hunt in 2023, with four bidders now remaining in the race, with a final decision expected this spring[iv]. The bidders are Rolls-Royce, Westinghouse, Holtec Britain and GE-Hitachi Nuclear Energy.

The UK Government has stated that developers of SMRs may well want to co-locate them with energy-intensive sites such as industrial clusters or data centres that support artificial intelligence (AI). Should the Government’s proposals be implemented, developers would be required to specify sites as soon as possible in the pre-application stage in the planning process. It has confirmed that restrictions for nuclear development will still apply near densely populated areas and military sites.

The Draft National Policy Statement for nuclear energy generation will now remain open for consultation until 3^rd April 2025. Announcing the plans the UK’s Prime Minister Keir Starmer has said:

“This country hasn’t built a nuclear power station in decades” Adding that “Our energy security has been hostage to Putin for too long, with British prices skyrocketing at his whims. I’m putting an end to it – changing the rules to back the builders of this nation and saying no to the blockers who have strangled our chances of cheaper energy, growth and jobs for far too long”[v].

In a press release, Simone Rossi CEO of EDF in the UK, has said:

“As a major operator, investor and developer, EDF welcomes the proposals designed to speed up new nuclear projects in the UK and unlock economic growth. Nuclear is essential to a secure, low carbon energy system and is the ideal partner to renewables. There is a great opportunity to build new infrastructure across England and Wales, to replace aging stations and take advantage of available skills, existing grid connections and supportive communities.”[vi]

Darren Hardman, CEO at Microsoft UK, said: “We welcome the government’s plans to accelerate the building of safe, modern nuclear as part of the energy mix. Economic growth will require increased energy supply for the UK, but we must not lose sight of our ambitions for a fully decarbonised grid”[vii].

If successful, the UK will join several other nations looking to SMRs to bolster energy supply, this includes China, which is constructing 29 reactors, and the EU, which has 12 at planning stage.