Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to help the private sector to deliver new nuclear energy projects.

This Government has set out multiple measures to support the private sector to deliver new nuclear energy projects. The Government wants UK companies to be ambitious in the new nuclear space and be better able to compete for the higher value opportunities that will help build sustainable capabilities in the UK. To support this the Government wants new nuclear developers to share supply chain information with industry early to ensure that UK companies are positioned and prepared to bid for these opportunities.

For future New Nuclear projects (i.e. projects after Hinkley Point C), developers will be required to produce Supply Chain Plans. Developers will need to show evidence that their projects will consider growth in the UK supply chain through the development of competition, the facilitation of new entrants and by boosting innovation and skills.

In addition, the Nuclear Energy (Financing) Bill is currently in Parliament. This will introduce a Regulated Asset Base (RAB) model to reduce the project costs and encourage a wider range of private investment into new nuclear projects.

The Government is in constructive negotiations over Sizewell C in Suffolk and recently entered into a Combined Option agreement of £100m with EDF, to mature the project further and attract potential investment. The Government has also made up to £1.7billion of funding available to reach a final investment decision on a new large-scale nuclear power plant this Parliament, subject to value for money and relevant approvals; these funds could also involve Government investment at the point of a capital raise, helping to mobilise other private sector capital into a project.

The Government announced a £385 million Advanced Nuclear Fund. From this, £210 million has been awarded to Rolls-Royce SMR to develop their Small Modular Reactor design, matched by private sector funding of over £250 million. The Government announced a £120 million Nuclear Enabling Fund to provide targeted support to address barriers to entry for future nuclear.

A £75 million Nuclear Fuel Fund will also be created to be used alongside private sector co-investment to preserve and develop the UK’s fuel production capability.