Nuclear: Small Modular Reactors

Lord Spellar Excerpts

Monday 19th May 2025 Lords Chamber

Asked by

[Lord Spellar]

To ask His Majesty’s Government when they expect to make an announcement on the award of contracts for small modular nuclear reactors.

[The Minister of State, Department for Energy Security and Net Zero (Lord Hunt of Kings Heath) (Lab)]

My Lords, Great British Nuclear is overseeing the small modular reactor competition for UK deployment. Following a period of detailed negotiation, bidders have now submitted final tenders, which Great British Nuclear is evaluating. Final decisions will be taken shortly.

[Lord Spellar (Lab)]

My Lords, I convey my best wishes to the Minister on his birthday today. Can I just press him a little further and ask him to celebrate by bringing some good news to the energy, nuclear and engineering industries and their workers and consumers by finally announcing or even giving a clearer date as to when a decision will be taken on small modular nuclear reactors? Is this to be yet another great British development lost to overseas suppliers due to bureaucratic inertia, dither and delay?

[Lord Hunt of Kings Heath (Lab)]

My Lords, I am most grateful to the noble Lord for his congratulations. What better way to spend my birthday than answering his Question? I understand his frustration. Of course, we want to get this SMR programme over the line. Great British Nuclear is coming to the end of its evaluation process. I expect an announcement to be made within the next few weeks. I believe we have a great opportunity in this country to develop small modular reactors and a UK supply chain and to get us towards net zero, because of the essential contribution that nuclear power will play in the baseload we require.

Energy Prices: Energy-intensive Industries

Lord Spellar Excerpts

Tuesday 6th May 2025 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

My Lords, I am grateful to the noble Lord and thank him for the work he does on behalf of so many important industry companies. He will know that we are in discussion with organisations such as his own and many other business and industry interests. As he said, we hope to publish the industrial strategy within the next few weeks. I cannot give him any guarantees as to what will be in it, but I assure him that I understand the pressures on our industries, and we are considering those very carefully in government.

[Lord Spellar (Lab)]

But, my Lords, the fundamental flaw in the pricing system introduced at the time of privatisation is that the average price of electricity was determined by the marginal price of the last kilowatt, which is normally produced by gas and, as the Minister rightly said, is therefore driven by international gas prices. That is not a law of physics or engineering but a political decision. Should we not be examining that to rebalance the pricing system to the benefit of industry and indeed consumers?

[Lord Hunt of Kings Heath (Lab)]

My Lords, the electricity market operates on the principle of marginal pricing, whereby the wholesale price of electricity is set by the last technology needed to meet overall demand. That is why gas tends to set the price for the market. We are of course looking at this as part of our REMA review that I have referred to. But the faster we decarbonise our energy and move towards clean power, the less gas will have the influence it does in the current system.

Energy Grid Resilience

Lord Spellar Excerpts

Tuesday 6th May 2025 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

Yes, my Lords, we are. It is a very relevant point. Clearly, we are looking for a balanced energy mix for the future. We see nuclear as being an essential baseload. We will have renewables, but we are looking at hydro storage, as the noble Lord reflected in his own question. The whole point is that we will have a balanced system, but one that is heavily decarbonised. That is exactly the aim of what we seek to do.

[Lord Spellar (Lab)]

My Lords, the Statement says that the GB system is “highly resilient” but, in reality, has that not eroded over recent years, as was demonstrated recently at Heathrow, when we have known for some years about capacity problems in west London? The Minister will also be aware of the bottlenecks on the high-voltage national grid, not helped by the current long lead times—around four years—for high-voltage cable and transformers. Even without the rising threat of sabotage, has the network provider not been far too complacent about the threats to the resilience of our electricity network? Finally, he mentioned in a reply about small modular reactors that the industry has been waiting for too long for a decision while our competitors are moving rapidly ahead. Is it not now time for action to get on with building this industry of the future?

[Lord Hunt of Kings Heath (Lab)]

My Lords, in relation to SMRs, I agree with my noble friend that we need to get on with it. I hope and expect that we will have some decisions very soon. I hope that that will set the foundation for future investment in the SMR programme.

As far as west London is concerned, my noble friend is absolutely right to point out the challenges there, and the fact that we basically inherited a system where there had not been sufficient investment in the grid and local distribution network. In relation to Heathrow, let us await the interim and final reports of the review that we have established to see what lessons can be learned. As I said earlier to the noble Earl, Lord Russell, the fact is that we expect there to be a major investment in our whole grid system between now and 2030. It will be essential to meet our clean power targets. I think that will give industry the confidence to invest in the areas where we wish it to do so.

Scotland: New Nuclear Power Generation

Lord Spellar Excerpts

Tuesday 18th March 2025 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

My Lords, the noble Earl is not going to draw me into commenting on what the Scottish Government have done on these matters. However, it is worth making the point that, in 2023, 19.3% of electricity generated in Scotland came from nuclear. That indicates that, in clean power, nuclear has a huge amount to offer Scotland, Wales and England.

[Lord Spellar (Lab)]

My Lords, would the Government’s hand not be greatly strengthened in dealing with the Scottish Government if they themselves moved ahead on a decision on small modular nuclear reactors? When do they expect to announce the outcome, and can we have something slightly more definitive than “soon”?

[Lord Hunt of Kings Heath (Lab)]

My Lords, I absolutely agree with my noble friend on the importance of the small modular reactor programme. He knows that Great British Nuclear is going through a selection process at the moment. We expect important announcements to be made in the spring.

Internet Activity: Energy Use

Lord Spellar Excerpts

Monday 27th January 2025 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

My Lords, my understanding is that NESO has estimated that 7 terawatt hours will be used by data centres in 2025, rising to 22 terawatt hours in 2030 and to 62 terawatt hours in 2050. As a comparison, it expects annual electricity demand in 2050 to be between 533 and 700 terawatt hours.

[Lord Spellar (Lab)]

My Lords, the expansion of data centres will require a significant expansion of the grid and of energy sources. In a written reply to me, the Minister indicated that, for the high-level grid, there is something like a four-year lead time for securing equipment. Furthermore, on energy sources, data centres need reliable sources of supply. Inevitably, that will mean the development of nuclear power, including small modular reactors. When will the Government get on and make a decision about the future of the small modular reactor programme?

[Lord Hunt of Kings Heath (Lab)]

My Lords, I agree with everything my noble friend said. He knows that we have a programme within Great British Nuclear to appraise the technology involved in a number of shortlisted small modular reactors. It is making considerable progress. We expect further announcements to be made in spring. My noble friend will understand that there are discussions taking place within the spending review.

Small Modular Nuclear Reactors

Lord Spellar Excerpts

Wednesday 22nd January 2025 Lords Chamber

Asked by

[Lord Spellar]

To ask His Majesty’s Government when they expect to announce the orders for the first small modular nuclear reactors.

[The Minister of State, Department for Energy Security and Net Zero (Lord Hunt of Kings Heath) (Lab)]

My Lords, Great British Nuclear is pushing forward with the SMR competition and is negotiating with a four down-selected companies. Once negotiations have concluded, the companies will be invited to submit final tenders, which Great British Nuclear will then evaluate, with final decisions to be taken in the spring.

--- Later in debate ---

[Lord Spellar (Lab)]

I thank the Minister for that Answer. He will be aware that the Government’s response to the AI action plan this month refers to the opportunity

“to accelerate investment in … Small Modular Reactors”.

He will also be aware that Britain is at the forefront of developing this technology, which could make a significant contribution to our growth agenda right through the country. However, delays in decision-making by the last Government led to significant slippage in the programme. What is the Minister’s department doing? He gave the procedure that would be undertaken, but what is the department doing to get the SMR programme back on track?

[Lord Hunt of Kings Heath (Lab)]

My Lords, I understand my noble friend’s impatience. It is an impatience that I share, because we can all see the potential of small modular reactors in the UK and the export potential of UK companies that are involved in developing SMRs. With fairness to Great British Nuclear, it is going through a tough process. We will have assurance with regard to the technologies and value-for-money issues. Spring is not far away. I understand the haste with which my noble friend wishes us to act in this area.

Great British Nuclear: Modular Reactors

Lord Spellar Excerpts

Monday 2nd December 2024 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

I am not sure I understand the question, but if it is whether we recognise the importance of SMRs in this country and generally, the answer is yes. On the benefits of the use of small modular reactors, having a modular approach in which much can be assembled off-site brings huge advantages. Going forward, we see that SMRs have great potential, and of course UK companies themselves have great potential.

[Lord Spellar (Lab)]

My Lords, the Minister clearly shares my frustration at the time taken in moving this issue forward under the previous Administration. At the same time, is it not a fact that we have a major nuclear reactor constructor in the UK that has been producing reactors for our submarines for over 60 years? Is it not enormously important for that constructor, and equally important for its supply chain, to be able to tool up and organise in order to produce? Is it not the unfortunate reality that the United States is moving ahead on this and has a full-spectrum approach to selling its modular reactors while we slip behind? What is the Minister going to do to speed this up?

[Lord Hunt of Kings Heath (Lab)]

I hope we are not slipping behind. Clearly, the process that GBN is going through will take a few more months, but I hope the outcome will be a satisfactory conclusion. I cannot comment on the companies involved in the appraisal and the discussions taking place with GBN at the moment, but I take the noble Lord’s point about our defence capability and the supply chain. We are increasingly seeing the civil nuclear and defence nuclear industries working more closely together, and I see that as a very important foundation for the future. I take the noble Lord’s point about the US; it is important that where we have a technological advantage, we make the best of it.

Civil Nuclear Road Map

Lord Spellar Excerpts

Thursday 22nd February 2024 Commons Chamber

[Damian Collins (Folkestone and Hythe) (Con)]

I beg to move,

That this House has considered the civil nuclear roadmap.

I thank the Backbench Business Committee for allowing time for a debate on this very important subject. This is probably the biggest moment for the nuclear industry in the UK for 50 years. The Government have set a very important and ambitious target of an extra 24 GW of nuclear energy into the grid by 2050. It will require a huge feat of civil engineering to create the facilities required to deliver that. We will do that in the context of wishing to see less reliance on imported oil and gas in our economy, with more clean sources of energy and electricity, and recognising that other changes in technology are creating enormous demands for new energy. The impact of artificial intelligence on energy demand will be very significant indeed. A researcher in the Netherlands estimated that the amount of electricity just to power AI in the world by 2027 will require enough electricity to power a country the size of the Netherlands. That is a not insignificant amount and an entirely new demand, in addition to the high levels of water required to power the cooling systems required for the amount of computing power and energy. Our demands for the electricity market are changing, but technology is also changing the impact it will have.

The review that the civil nuclear road map sets out has to consider not only those challenges but the requirement set in 2011, when the current nuclear site list was agreed by Parliament, that it would need to be reviewed in 2025 for the next period. I remember very well, as a new Member of Parliament, the 2011 review, and with the nuclear power station at Dungeness in my constituency. The idea of the site list then was to try to give certainty to communities that nuclear power stations could be developed there, largely alongside existing facilities. Eight locations were agreed. Dungeness in my constituency was not expressly ruled out, but it was not included at that time. I have tried to be an advocate for looking at what is possible for nuclear sites such as Dungeness, and not just looking to say, “Well, if they can’t accommodate a nuclear reactor the size of Hinkley Point C or Sizewell C then there is no future for them at all.”

[John Spellar (Warley) (Lab)]

Does that not indicate why there ought to be greater latitude in particular when considering small modular reactors, and preferably those produced in the United Kingdom?

[Damian Collins]

I completely agree with the right hon. Gentleman. I will come on to that in more detail—that is normally an excuse to say I am not going to answer his question, but I wholeheartedly agree with what he says and I want to give it some attention as I go through my remarks.

The advent of advanced nuclear technologies and small modular reactors is the big thing that is different now compared to 2011. They give us more flexibility in the technologies that can be deployed. I also agree with the premise of the right hon. Gentleman’s point: this is exciting not just because it opens up new opportunities for nuclear power in the UK, but because it creates an opportunity for a renaissance in the civil nuclear industry in the UK. It is particularly exciting to see British firms such as Rolls-Royce leading the development and design of new small modular technologies. While the Government have their competition to identify best bets in terms of technologies to invest in, we need to look not just at the unit price of that technology, but at the wider impact and benefit to the UK economy of investing in the new technology, in particular the modular reactors that can be factory built and assembled. They can be designed not just to meet our energy demand; they could also be an export industry for the future for the UK. That is an incredibly important part of the equation.

In designing the civil nuclear road map and through the creation of Great British Nuclear, the Government have tried to make it as easy as possible for the industry to work with the Government, to understand what the Government’s needs and objectives are, and to understand the technologies that they may seek to invest in. I think all of that is welcomed. Certainly, the people in the industry I have spoken to welcome that step, which creates a degree of certainty. We are looking at far more players to be involved in the UK nuclear market than was the case in the past, with a far greater range of technologies and different businesses investing in them and developing them in the UK, Europe, the United States and further afield. This is all to be welcomed and encouraged.

I appreciate why it is difficult for the Government now, as it would have been in the past, to say, “These are the technologies that we know with certainty we can back” because the range is so great, but nevertheless we need to give certainty to the market and investors. The Government’s competition for SMRs is also important, but there will be developers of technologies that do not necessarily require Government subsidy and support, but simply seek sites where they can deploy their technology and know they connect to the grid.

[John Spellar]

The hon. Gentleman talks about the competition. I would also mention the time it is taking. Is the underlying problem not that while we have a manufacturer with a proven capacity to produce modular reactors, as it has been doing for the Royal Navy for many decades, the United States is out there selling its technology with the full backing of the US Government and their various departments right the way across Europe and other parts of the world? We are just considering it. Are we not hobbling British industry and the possibility of us being involved, as he rightly said, in this exciting new development?

[Damian Collins]

I am sure the Minister will speak for himself on that particular point, but that is not a characterisation I would share. What the competition and Great British Nuclear are doing is giving a very strong signal to businesses such as Rolls-Royce not only that this is a sound technology to invest in, but that there is potentially a very robust market for it in the UK. That is what I would like to see and why I said earlier that when these technologies are considered we need to think about the broader impact on UK manufacturing and jobs that supporting and backing these technologies would bring, not just the manufacture of modular reactors and electricity.

I have met Rolls-Royce and seen its SMR plans and designs. They are incredibly exciting. As the right hon. Gentleman says, this is technology that has been developed for the Royal Navy, and its applications for civil nuclear are very exciting indeed. I hope that it is very successful with it. I would certainly be very happy to see a Rolls-Royce SMR in my constituency at Dungeness.

Civil Nuclear Road Map

Lord Spellar Excerpts

Thursday 11th January 2024 Commons Chamber

[Andrew Bowie]

I thank my right hon. Friend for his support of this document and for the work that he has done in chairing the Committee to drive forward the arguments for further investment in nuclear. I know he shares my belief that if we are to reach net zero, nuclear will play a large part in the mix of energy solutions that we invest in.

My right hon. Friend is absolutely right that we need to build a broad consensus. I genuinely welcome the support of the official Opposition for new investment in nuclear. As I said, when we look around the world, the pace at which the mood is changing and the broad acceptance of nuclear as a key benefit in reaching our net zero goals is incredible. It will take a lot of hard work on the part of all of us who believe in the benefits that nuclear can bring economically, to our energy security and, ultimately and most importantly, to the environment, to keep the pressure up. I look forward to his writing to me, and to discussing the issues that he has raised further, and I thank him once again for his broad support for what we are trying to deliver.

[John Spellar (Warley) (Lab)]

May I welcome the statement? I was going to commend the Minister on the work that I know he has done, until he unfortunately became petty political—I think he spent a bit too much time in Scottish politics. He will be aware that the small modular reactor assessment is already behind the Government’s own timetable. That is undermining Rolls-Royce, which builds small reactors for the Royal Navy and has done for many decades. Meanwhile, the formidable American political industrial machine is hoovering up customers around the world. Can we not learn from the vaccine taskforce how to accelerate process while maintaining safety? Will he now get a move on so that we can build British modular nuclear reactors using British workers?

[Andrew Bowie]

I know the right hon. Gentleman would never stoop to petty politics in this Chamber or anywhere else, but I have to disagree with him. I share his passion for small modular reactors, and I share his belief that Rolls-Royce is a world-leading company that is delivering for this country right now and will continue to do so in future.

We are proud of the small modular reactor competition, which we launched in July. We have already completed the first process. We have six world-leading technologies competing to get investment from the UK Government for deployment here domestically, of which Rolls-Royce is of course a part. We will be launching the next phase in a matter of weeks. It is world-leading, and faster than any comparable programme in the world. The right hon. Gentleman says to get a move on, but we have not stopped to draw breath since we first launched GBN and the small modular reactor drawdown competition in the summer. However, I welcome his support for what we are doing, and I hope that he can encourage more of his colleagues to support it.

Oral Answers to Questions

Lord Spellar Excerpts

Tuesday 4th July 2023 Commons Chamber

[Mr Rob Roberts (Delyn) (Ind)]

16. What steps he is taking to introduce small modular nuclear reactors into the energy mix.

[John Spellar (Warley) (Lab)]

19. When his Department plans to complete its competitive process for small modular nuclear reactor technologies.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)]

I am pleased, and indeed proud, to say that Great British Nuclear will be holding a competition for small modular reactors, because we want to attract the best designs from both domestic and international vendors. The Government’s ambition is to select the leading technologies by autumn, providing co-funding to any viable new technology. Our commitment to a nuclear programme and to Great British Nuclear will enable the UK to be on a path to achieve its ambition to become a global leader in nuclear energy and small modular reactors.

[Andrew Bowie]

The Government recognise the support for nuclear power across north Wales. Great British Nuclear will work with the Government on access to potential sites for new nuclear projects to achieve our long-term ambition. As a first step towards the development of the new national policy statement for nuclear, we will consult later this year on a proposed way forward for determining how new nuclear developments, including SMRs, might be located.

[John Spellar]

The Minister will know that this country has been producing small nuclear reactors for our submarines for more than 50 years. Does the Minister understand that while he is dithering around with his time-wasting international competition, those international competitors are out there in the market getting the orders and selling, backed to the hilt by their own Governments? Is this going to be yet another great British development created by our scientists, engineers and skilled trades, but allowed to slip away by blinkered civil servants and weak Ministers who cannot make a decision?

[Andrew Bowie]

Rolls-Royce is a great British company, which is why we previously made up to £210 million available from the advanced nuclear fund to Rolls-Royce SMR Ltd to support the development of its small modular reactor design. Great British Nuclear will launch the first-stage selection process for small modular reactors, which is expected to attract the best designs from domestic and international vendors, which will be great for this country. By the way, we are going three times faster than any comparable country on this project.