The UK government has announced significant nuclear regulatory and planning reforms aimed at accelerating the development of nuclear power in England and Wales. These developments signal a clear intention to streamline regulations and accelerate the deployment of nuclear projects, particularly small modular reactors (SMRs).
While challenges remain, these changes could reshape the investment landscape for nuclear energy in the UK.
Government Commitments to Nuclear Expansion
The UK government has unveiled two key initiatives aimed at reducing the barriers to nuclear development.
First, a Nuclear Regulatory Task Force, reporting direct to the Prime Minister, is being set up to examine ways of streamlining the burden of regulation involved in developing and building a nuclear plant (see ONR announcement).
Secondly, a new national planning regime will be published which aims to clarify the planning needs for nuclear, removes the existing limitation of nuclear plants to eight named sites, and for the first time includes small modular reactors (SMRs) (government news release).
These announcements are significant, as they should – eventually – make it much easier to develop nuclear plants in England and Wales, especially SMRs. Although some of the SMR marketing hype is a bit optimistic, the technology is ready to go but needs to show a robust path to spades in the ground (and SMR factories spewing out modules) before funding will flow, either from government or private investors.
Implications for Investment and Project Development
Four SMR vendors are eagerly waiting for the outcome of the government’s SMR competition later this year, and a number of project developers are waiting in the wings with other reactor designs and sites. However, the majority of the uncontrolled risk in future projects, whether SMR or large plants, currently lies with the uncertainty and time involved in getting regulatory and planning permissions, which at the moment makes private investors put their money elsewhere at lower risk and quicker returns.
Encouragingly, the government announcement mentions that the regulatory task force will ‘ensure nuclear regulation incentivises investment’, recognising for the first time that the licensing and investment processes need to be more closely aligned. Good news, and all of this should make investment in new nuclear projects more attractive.
Looking Ahead
Interestingly, the government announcement states that “more nuclear power plants will be approved across England and Wales” – which makes it sound like the decisions have already been taken….
The UK’s latest nuclear regulatory and planning reforms mark a decisive shift in government strategy, aiming to fast-track nuclear development and attract much-needed investment.
For those navigating the evolving nuclear landscape, Prospect Law is well-placed to provide expert guidance on regulatory compliance, planning considerations, and investment strategies. Get in touch to consult the Nuclear Regulatory team at Prospect Law.
John Warden
John Warden brings 35 years of experience in the nuclear and defence sectors to Prospect. He specialises in nuclear reactor project structure and financing, implementation of nuclear technologies, and strategies to meet climate goals using nuclear power. He is increasingly active in the field of advanced nuclear technology, where he advises on the economics and feasibility of deploying small modular reactors and advanced nuclear technology.
Contact John to arrange a call.
