SMRs and Cost

fleet of mini nuclear reactors is not expected to materialise for at least
another 12 months, amid a row in government over the cost of Britain’s wider
nuclear ambitions. Last year, in order to triple domestic nuclear capacity to
24 gigawatts by 2050 — a quarter of the UK’s projected electricity demand —
Boris Johnson set out plans for eight new large reactors alongside the
development of small modular reactors (SMRs). The government also announced the
formation of Great British Nuclear (GBN), a body responsible for helping to
deliver the next generation of reactors and SMRs by identifying potential
sites, developers and investors. At present only one plant, Hinkley Point C, is
under construction, with the financing and final investment decisions on
Sizewell C still pending. However, even though all but one of the UK’s existing
plants are set to be shut down by the end of the decade, the government’s
nuclear strategy now appears at risk of stalling amid internal disagreements. In
particular, Whitehall sources have revealed that there remains significant
uncertainty over the scale of state investment in SMRs. Rolls-Royce, which has
created designs for a 470 megawatt SMR and wants to begin building factories,
has called for ministers to enter funding talks and start placing orders. Rolls
is understood to be seeking a commitment for four initial SMRs at a cost of
about £2 billion each, which it believes would unlock orders from interested
foreign buyers. But a senior government source said the Treasury would not sign
off on any orders or significant funding until the technology had approval from
the Office for Nuclear Regulation, which is not expected until 2024. While the
government has already invested £210 million in Rolls’s technology, the
Department for Business, Energy and Industrial Strategy (BEIS) is also still
assessing whether its competitors, including GE Hitachi, may offer “more
viable” alternatives. Insiders have signalled that the government may opt to
launch yet another competition to gather further evidence before any firm deals
are struck. More broadly, Treasury ministers harbour big concerns over the
costs associated with GBN, which officials have warned is billions over budget.
While officials expect GBN to be announced early this year, after months of
delays, the internal wrangling could lead to changes to both the body’s scope
and funding.

Times 8th
Jan 2023

https://www.thetimes.co.uk/article/delay-to-small-nuclear-reactors-as-ministers-battle-over-costs-cggmmwpqz