Nuclear
The build-again story
▶Open consultations (1)
DESNZ seeks evidence on nuclear third party liability limits for Small Modular Reactors and Advanced Modular Reactors, which by default face the same €1.2bn liability requirement as gigawatt-scale plants by 2027. The consultation runs until 1 June 2026 and covers both electricity-generating SMRs and non-electric applications like hydrogen production or industrial heat. Current liability arrangements require operators to secure insurance cover up to their liability limit, with lower limits available only for prescribed lower-risk sites.
▶High impact (4)
Government accepts 47 recommendations from the Nuclear Regulatory Review to consolidate nuclear regulation, merge ONR and DNSR by 2028, and establish a Nuclear Commission to resolve regulatory conflicts. Implementation commits to delivery by end-2027 subject to legislative timelines, with a Nuclear Regulatory Implementation Panel to hold government and industry accountable.
DESNZ launches the Advanced Nuclear Framework enabling privately-led SMR, AMR and MMR projects through a government Pipeline process offering limited endorsement and potential revenue support. Projects submit detailed plans across technology, finance, siting, and operations for structured assessment by DESNZ and Great British Energy-Nuclear. Pipeline membership provides a statement of credibility, access to discussions on CfD-style revenue support and high-impact low-probability risk protections, plus potential National Wealth Fund investment.
DESNZ proposes extending CfD eligibility to existing nuclear plants seeking lifetime extensions, requiring legislation changes to enable subsidised investment in plant refurbishments. The consultation runs until early 2025 with no specified implementation timeline. This would apply CfD strike prices to plants that currently operate merchant, potentially covering substantial refurbishment costs at Sizewell B and other AGR stations nearing end of design life.
DESNZ opens consultation on National Policy Statement EN-7, which will set planning policy for nuclear power stations deploying after 2025. The NPS replaces outdated planning guidance and determines how Planning Inspectorate assesses Development Consent Orders for new nuclear projects. This affects all nuclear development beyond current committed projects like Hinkley Point C and Sizewell C.
▶All publications (19)
DESNZ publishes Clean Power 2030 tracking metrics showing clean generation share, clean demand share, and emissions intensity. Annual data in GWh and percentage shares.
Energy Trends Q4 2025 and full-year 2025. Renewables reached a record 52.5% share of electricity generation (152.5 TWh). Wind hit 30.0% (87.1 TWh) and solar rose 37% to a record 20 TWh. Nuclear fell to a record low — low carbon share barely moved from 64.6% to 64.8%.
DESNZ launched an interactive map showing clean energy projects supported by government funding since July 2024, including National Wealth Fund and Great British Energy investments. The map displays investment amounts and job figures for featured projects. More projects will be added as they are announced.
DESNZ seeks evidence on nuclear third party liability limits for Small Modular Reactors and Advanced Modular Reactors, which by default face the same €1.2bn liability requirement as gigawatt-scale plants by 2027. The consultation runs until 1 June 2026 and covers both electricity-generating SMRs and non-electric applications like hydrogen production or industrial heat. Current liability arrangements require operators to secure insurance cover up to their liability limit, with lower limits available only for prescribed lower-risk sites.
DESNZ seeks evidence on whether nuclear third-party liability treaties designed for large reactors should apply unchanged to SMRs and AMRs, or require alternative arrangements. The consultation explores liability frameworks under the Paris/Brussels Conventions and CSC for advanced nuclear technologies. No specific changes are proposed — this is evidence-gathering to inform future policy.
DESNZ publishes updated levelised cost estimates (LCOE) for electricity generation technologies, with significant upward revisions for offshore wind and gas plants due to supply chain pressures and commodity price increases. Solar and onshore wind costs remain relatively stable. Hurdle rates increase 1-2 percentage points across all technologies, while carbon price assumptions no longer converge to the social cost of carbon, reducing long-term costs for gas generation.
The Chancellor's Mais Lecture outlines a strategy for investment-led growth through an 'active and strategic state', including energy security measures and industrial policy. Key energy commitments include lifting the onshore wind ban, investing in offshore wind and nuclear (Sizewell C, small modular reactors), and implementing the Fingleton Review to accelerate nuclear deployment. The government claims these measures have reduced gas imports by 17% since 2021 and enabled a £117 average reduction in the energy price cap.
UK Industrial Fusion Solutions appoints ILIOS as construction partner for the STEP Fusion programme at West Burton under a £200 million contract. The consortium will act as principal design and build contractor for the prototype fusion plant, managing all construction aspects through to planned operation in 2040. Construction is expected to support up to 8,000 onsite jobs at peak.
Government accepts 47 recommendations from the Nuclear Regulatory Review to consolidate nuclear regulation, merge ONR and DNSR by 2028, and establish a Nuclear Commission to resolve regulatory conflicts. Implementation commits to delivery by end-2027 subject to legislative timelines, with a Nuclear Regulatory Implementation Panel to hold government and industry accountable.
Government accepts Nuclear Regulatory Taskforce recommendations to streamline nuclear planning and regulation, with all reforms to be completed by end-2027. The taskforce found an 'overly complex' and 'bureaucratic' system that favoured process over outcomes. New £65.6m funding will train 500 doctoral students across 4 intakes, quadrupling current nuclear PhD numbers.
DESNZ has commissioned an independent review of the Nuclear Decommissioning Authority (NDA) led by Dr Tim Stone, focusing on strategic planning, project delivery, and financial management. The review runs January to Autumn 2026 and was mandated by HMT as a condition of the 2025/26 spending settlement. The NDA manages decommissioning of civil nuclear legacy sites with taxpayer funding.
DESNZ publishes quarterly data showing UK renewable electricity generation reached 35.5 TWh in Q3 2025, up 7.4% year-on-year, driven by 2.9 GW of new solar capacity and 1.0 GW of offshore wind. Total UK energy production hit a record low at 21.2 million tonnes oil equivalent, down 2.5%, with nuclear generation falling 28% due to maintenance outages. Renewables achieved 54.7% of electricity generation, just below Q2's record.
DESNZ launches the Advanced Nuclear Framework enabling privately-led SMR, AMR and MMR projects through a government Pipeline process offering limited endorsement and potential revenue support. Projects submit detailed plans across technology, finance, siting, and operations for structured assessment by DESNZ and Great British Energy-Nuclear. Pipeline membership provides a statement of credibility, access to discussions on CfD-style revenue support and high-impact low-probability risk protections, plus potential National Wealth Fund investment.
DESNZ is reviewing three nuclear installation regulations from 2017-2018 that govern prescribed sites, insurance certificates, and excepted matters. The post-implementation review seeks feedback on whether the regulations meet objectives and if less onerous alternatives exist. This is routine regulatory review, not policy change.
DESNZ proposes comprehensive cost recovery fees for energy infrastructure planning applications to replace current non-cost-reflective charges. The fixed fee model aims to generate revenue for resourcing planning decisions, with annual fee reviews and potential indicative timescales for applications without statutory deadlines. Consultation responses are due by spring 2026 with implementation following.
DESNZ proposes extending CfD eligibility to existing nuclear plants seeking lifetime extensions, requiring legislation changes to enable subsidised investment in plant refurbishments. The consultation runs until early 2025 with no specified implementation timeline. This would apply CfD strike prices to plants that currently operate merchant, potentially covering substantial refurbishment costs at Sizewell B and other AGR stations nearing end of design life.
DESNZ launches a call for evidence to inform a Nuclear Regulatory Taskforce examining defence and civil nuclear regulation. The consultation seeks case studies, historical data, and evidence for regulatory reform from industry stakeholders. No specific reforms are proposed — this is evidence-gathering to inform future taskforce recommendations.
DESNZ opens consultation on National Policy Statement EN-7, which will set planning policy for nuclear power stations deploying after 2025. The NPS replaces outdated planning guidance and determines how Planning Inspectorate assesses Development Consent Orders for new nuclear projects. This affects all nuclear development beyond current committed projects like Hinkley Point C and Sizewell C.
DESNZ begins scoping for a new Fusion Energy National Policy Statement to streamline planning consent for commercial fusion facilities. This is the first of two consultations, focusing on policy approach before drafting the actual NPS. The consultation runs for 8 weeks from May 2024.