In 2019, the UK’s 2050 net zero target was passed into law. Since then, a fifth of the time to reach this target has already passed. It has therefore become more critical than ever to take the action required to hit this target, to work toward long-term energy security, to prepare for a doubling of electricity demand by 2050, and to find reliable and scalable energy solutions.
Small Modular Reactors (SMR) offer an attractive solution to these challenges. With their faster construction timelines and standardised design, SMRs are expected to deliver flexibility and economies of scale that larger gigawatt plants simply cannot match. Their smaller size also makes them more financeable than big nuclear, reducing those “first of a kind” risks that have historically slowed nuclear projects. Future nuclear projects can and will play a very different role in our energy system.
So far the government has sent positive signals to the market about its commitment to SMR technology, as evidenced by Great British Nuclear (GBN) progressing its ongoing competition. Following an announcement in September, I’m delighted that GE Hitachi (GEH) has progressed to the next stage of this competition, and it’s encouraging that GBN previously stated it is committed to deploying two SMR technologies.
The formation of a world-leading safety standards and regulation body, overseen by the Office for Nuclear Regulation (ONR), and the introduction of Regulated Asset-Based (RAB) financing model further emphasises the UK’s commitment to becoming a key destination for SMR investment and development.
However, to fully unlock the potential of SMRs, the government must maintain this momentum and demonstrate a long-term commitment to this technology. So here are my three asks:
1. The government must establish and communicate a clear pipeline for future SMR projects. By updating the National Policy Statement for siting and providing visibility on upcoming SMR site locations, investors and industry alike will gain the confidence to invest in essential infrastructure, such as manufacturing facilities and assembly plants. Our recently signed Memorandum of Understanding with Aecon, AtkinsRéalis, Jacobs, and Laing O’Rourke highlights GEH’s readiness to collaborate with the supply chain to deliver on this pipeline, ultimately driving both economic and social value across the UK.
2. Simplifying, streamlining and accelerating planning processes is vital for rapid SMR deployment. It is encouraging to see that the government has pledged to expedite planning processes for energy projects through reforms to the National Planning Policy Framework but the faster they can deliver on this, the better.
3. To realise the full benefits of the SMRs repeatability and scalability, international regulatory alignment is crucial. This will further accelerate deployment and reduce costs. Given GEH are delivering the first commercial, land-based SMR in the western world, we keen to leverage this expertise in the UK. Afterall, our BWRX-300 is built on decades of tried and tested technology. This will also maximise export opportunity for UK suppliers.
SMRs present a flexible and scalable solution to the UKs future energy challenges, but the government must act swiftly on the above asks to provide long-term stability to the industry. With the right support, I hope that GEH could deliver up to 20 SMR units in the UK, which could establish the UK as a European hub for SMR technology.
GE Vernova already has an expansive footprint in the UK, recently announcing it would double capacity of its HVDC manufacturing capabilities in Stafford, creating hundreds of jobs locally. Advancing the deployment of SMRs has the potential to increase the jobs we are able to create here in the UK, whilst enabling us to build a robust supply chain and deliver on the UK’s energy ambitions.
