UK’s nuclear modular reactor plan needs clarity, MPs say

The government has been told that its plan for small modular reactors (SMRs) lacks clarity and therefore risks increasing costs to the taxpayer.

The Environmental Audit Committee makes the assertion within a strongly-worded letter sent to energy secretary Claire Coutinho.

It states that despite pledging £215 million to advance SMRs, government policy on the role of the technology in Great Britain’s energy mix remains unclear.

The committee is particularly concerned about the government’s timeline for SMR deployment.

It points out that as a final investment decision on the first SMR is not expected until 2029, it is unlikely that the reactor project will be contributing generating capacity to the grid in 2035.

With the government aiming to have decarbonised the grid by 2035, the cross-bench group of MPs raise concerns about the role that SMRs will therefore play.

Environmental Audit Committee chair Philip Dunne said: “The first SMR is unlikely to be in operation by 2035, the date ministers have set for decarbonising the electricity supply: so what role will SMRs have in an energy mix dominated by renewables and supplemented by existing and emerging large-scale nuclear?

“This uncertainty risks knock-on effects for industry confidence: not only for investment decisions relating to the initial build and the construction of factories to build reactor modules, but also for the support and growth of supply chains and skills.

“We simply don’t yet know how much SMRs will contribute to electricity generation in the country, nor how much the roll-out is likely to cost the taxpayer.”

He added: “As a result of the UK’s push towards nuclear SMR technology, the UK has the opportunity to be a genuine world leader in the manufacture of SMR nuclear capability with great export potential.

“However, despite pledging hundreds of millions of pounds in support for SMR projects and undertaking to invest in the construction of the UK’s first SMR, the government’s overall vision for the sector at this stage lacks clarity: Ministers might commission as much as 24GW in nuclear capacity by 2050, but could commission as little as 12GW.”

Evidence submitted to the committee as part of an ongoing consultation also indicates that the models contemplated for UK deployment through Great British Nuclear’s SMR competition were likely to result in a greater amount of waste for storage and reprocessing.

The group of MPs have also called for all value for money assessments on SMR projects undertaken within government and Great British Nuclear to be published for parliamentary and public scrutiny before any decisions to commit public money are made.

The committee also raises concerns about a “skills deficit”, adding that “deploying SMRs without concurrent supply chain development could hinder deployment and increase costs”.

A Department for Energy Security and Net Zero spokesperson said: “The Nuclear Roadmap clearly sets out how we’re backing both small modular reactors and large-scale nuclear as part of the biggest expansion in 70 years, to help ensure up to a quarter of all UK power is generated from nuclear by 2050.

“Our world leading SMR competition aims to be the fastest of its kind, helping secure billions in investment for the UK, and delivering cheaper, cleaner and more secure energy for families and businesses.

“We are consulting on alternative routes to market for private sector projects and our plans will always be underpinned by robust value for money assessments.”

The government committed to increase nuclear generation to 24GW by 2050 within its Civil Nuclear Roadmap to 2050, published in January.

Within the roadmap, the government said it is keen to relax planning rules to allow nuclear power stations to be built on more sites than are currently permitted. Having more freedom over siting for new nuclear plants is required for the rollout of small and advanced modular reactors, the government said.

A six-strong shortlist of companies was announced in October 2023 to design and build small modular reactors (SMRs) in the UK.

The six companies advancing to the next stage of the competition include EDF, GE-Hitachi Nuclear Energy International, Holtec Britain, NuScale Power, Rolls Royce and Westinghouse Electric Company.