The UK Government publishes the Advanced Nuclear Framework

Key takeaways:

• A government-backed credibility filter to unlock private capital for Small Modular Reactors ("SMRs"), Advanced Modular Reactors ("AMRs") and Micro Modular Reactors ("MMRs");
• A structured Project Readiness Assessment with a statement of in-principle endorsement;
• Access to discussions regarding revenue support, a government support package and the National Wealth Fund; and
• Dedicated relationship management via DESNZ's new Advanced Nuclear Business Engagement Unit.

The Advanced Nuclear Framework

Last week the Government published the Advanced Nuclear Framework (the “Framework”) which aims to speed up the development of nuclear power and create a “golden age” for nuclear in the UK.

The Framework aims to:

• Stimulate private investment in innovative nuclear technologies;
• Provide a clear route to market; and
• Support credible projects to get them off the ground.

Part One 

The Framework introduces the UK Advanced Nuclear Pipeline (the “Pipeline”). Project proponents will need to submit an application to the Department for Energy, Security and Net Zero (“DESNZ”) and Great British Energy – Nuclear (“GBE-N”) including:

• A project summary;
• Evidence supporting the project’s status across the five ‘core areas’: technology and supply chain, developer capability, finance/funding/investment, siting and operator / end-use arrangement based on a Claims, Arguments, Evidence structure; and
• A declaration of eligibility

Following submission of a proposal, DESNZ and GBE-N will complete the following initial checks:

• Preliminary eligibility check: in relation to scope, location, constitution of the proposer, criminal record checks, sanctions, solvency and checks on non-proliferation and sensitive nuclear information; and
• Completeness check: to ensure the information has been provided in the project summary and across each of the ‘core areas’ identified by DESNZ.

Projects which meet these requirements will then go through a three-stage process:

• Phase 1 – Initial Rapid Project Triage: to assess the project’s readiness for a more detailed readiness review including a review of claims and arguments provided in the proposal and the project’s potential viability to support more detailed review. Projects scored as satisfactory or above will progress to the next stage;
• Phase 2 – Project Deep Dive: interrogate the five ‘core areas’ of the project to assess readiness. Projects scoring a total of 15 or more across all five ‘core areas’ will be included in the Pipeline ; and
• Phase 3 – UKAN Pipeline: acceptance into the Pipeline is subject to ministerial approval and agreement of the Pipeline terms, including a communications protocol, code of conduct and a review and change management process. Recipients will receive a statement of limited in-principle endorsement as confirmation considers the project credible and potentially deliverable in the UK.

Financing and Funding

Proposers of Pipeline projects will be able to engage with DESNZ to discuss potential revenue support (such as a Contract for Difference) and/or a government support package to cover certain High Impact-Low Probability Risks that are un-insurable on the commercial insurance market. 

In addition, all Pipeline projects can approach the National Wealth Fund (“NWF”) to discuss financing options which include a full suite of debt, equity and hybrid instruments. In this capacity, NWF will work as a catalytic investor, working alongside private capital. 

Part Two 

Part two of the Framework is intended to map out the Government’s wider strategy to support nuclear development in the UK and accelerate the deployment of new nuclear plants. These reforms include:

• Reform of the planning system
• Reform of the grid connection process
• Reform of the nuclear regulatory process

Planning system reform 

The National Policy Statement for Nuclear Energy Generation (“EN-7”) will implement the planning reform with the intention of providing flexibility, introducing a criteria-based approach to siting, enveloping SMRs and AMRs into the development consent framework and supporting co-location of energy-intensive industry. We have previously reported on the details of EN-7 here. 

Grid connection reform

Grid connection form will be led by the National Energy System Operator (“NESO”) including reform of the Gate-2-to-whole-queue process the timeline of which we have previously set out here, in addition to ensuring the prioritisation of ready projects and a reduction in delays.

Regulatory reform

The Government has accepted the Nuclear Regulatory Taskforce’s (the “Taskforce”) 47 recommendations in the Budget, in principle, with an implementation plan expected early 2026, and a commitment to implement the recommendations within two years. Details of the Taskforce’s review can be found here. 

Further regulatory reform and progress discussed in the Framework include the offer of voluntary early engagement by the regulator to de-risk pathways before formal steps like the Generic Design Assessment or site licensing and enhanced international collaboration through the International Atomic Energy Agency and bilateral partnerships. 

The Government has also announced that it will launch a call for evidence for the potential reform of the UK’s nuclear third party (nuclear) liability regime to facilitate the deployment of advanced nuclear technologies in the coming years.

You can read the full framework here: UK Advanced Nuclear Framework

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