Spring Budget ‘23
There has been a lot of coverage this last few days about nuclear energy in the UK, and you may be wondering what it all means in practical terms for our community.
The answer is still complex and uncertain, but here’s our update on where we are with our plan to bring small modular reactors (SMRs) to Cumbria, with all the benefits that brings for Net Zero and for local prosperity.
In the Spring Budget last week, the Chancellor reiterated Government’s intent to secure up to 25 per cent of the UK’s energy supply from nuclear power generation by 2050.
He also announced the launch of Great British Nuclear (GBN) as the bridge between government policy and the market, and the first competition for SMR development in the UK.
We welcome these announcements, of course. GBN is a vital link, and its programmatic oversight will make it much easier to address the many critical enablers needed – such as grid connectivity, skills, supply chain capability, and off-take arrangements for buying the power generated. The nature of the competition is uncertain, however; more on this in a moment.
We’ve had many discussions, with numerous people, over several months on the topic of GBN and its likely powers and direction – all of which have been constructive and strategically well aligned.
However, we believe there is still a shift to be made in how Government sees the SMR opportunity. Decades of experience in single nuclear entities such as Hinkley Point and Sizewell have understandably created a particular view of cost and schedule risks.
Modularisation, size and different contracting ensures the UK’s SMR fleet will be built with far greater predictability, lower risk and therefore with private investment.
This approach is reflected in media coverage too. Specific reference to developers and operators seems absent, even where technology and planning issues are discussed. This market isn’t simply a small version of the GW market; there are more players and many new entrants.
Without development, the best design plans and land availability are not enough. Early work around legal consents, as just one example, needs to happen concurrently.
We have the expertise and processes in place at Solway CPC – the capability to gain consent, and hold a licence; we have funding lined up, and our community mandate is strong.
We’re ready also to compete, if that is needed. We don’t yet know the parameters of any GBN competition, but we can show our readiness around cost and investment, safety and security, environmental controls, regulation and scrutiny, community engagement and so on.
To our community, it must seem sometimes like nothing is happening or that progress is slow. In reality, we’re engaged in a multitude of discussions and negotiations with a wide range of stakeholders, from private investors to government ministers, but there’s not much to share until we have concrete agreements. There have been too many false dawns for us to raise hopes before we have everything in place to make the totality happen.
These agreements feel close, although we still need permission to use the land and, ultimately, to agree a price for the power.
That said, it’s fantastic to see the shift in the awareness and conversation about SMRs and clean nuclear energy since we launched our intention just four months ago.
Really, it feels like it’s all there for the taking – the technology, expertise, and the commitment to invest in Great Britain.
We’re ready to ‘stand up’ and get started, to enable rapid progress for the newly launched Great British Nuclear.
And we know our community is ready to engage in the detailed conversations about this opportunity. Thank you for that continuing support.