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Rolls-Royce selected for UK’s SMR build


UK Nuclear power


Rolls-Royce has been selected as preferred bidder to build the country’s first small modular reactors. The decision follows a rigorous 2-year competition to select nuclear technology for UK deployment.


Rolls-Royce SMR will partner with Great British Energy – Nuclear to develop small modular reactors, subject to final government approvals and contract signature. The new name ‘Great British Energy – Nuclear’ is intended to reflect its joint mission with Great British Energy to rollout clean home-grown power as 2 publicly-owned energy companies. As part of the UK government’s modern Industrial Strategy to revive Britain’s industrial heartlands, it is pledging over £2.5 billion for the overall small modular reactor programme in the current Spending Review period, with this project potentially supporting up to 3000 new skilled jobs.


Great British Energy - Nuclear is aiming to sign contracts with Rolls-Royce SMR later this year


and will form a development company. Great British Energy - Nuclear will also aim to allocate a site later this year and connect projects to the grid in the mid-2030s. When SMRs and Sizewell C come online in the 2030s, combined with the new station at Hinkley Point C, more nuclear power will be available to the grid than at any time in the previous half century.


SMRs are smaller and quicker to build than traditional nuclear plants, with costs likely to come down as units are rolled out. The outcome of this competition is the first step towards reducing costs and unlocking private finance, enabling the UK to realise its long-term ambition of delivering one of Europe’s first small modular reactor fleets. It comes after the government announced plans to shake up the planning rules to make it easier to build nuclear, including small modular reactors across the country.


Rolls-Royce SMR is progressing through the final stage of the assessment by the UK nuclear industry’s independent regulators.


Can SMRs solve current energy problems? – new report


Worldwide Nuclear power Arthur D. Little has published a major new report, ‘The Growth and Future of Small Modular Reactors’, which explores the transformative potential of SMRs in advancing global energy security and decarbonisation goals.


While SMRs promise faster, more flexible, and potentially cheaper deployment than traditional nuclear plants, the report highlights several barriers that must be addressed, from cost competitiveness and supply chain scalability to regulatory harmonisation and market activation. The International Atomic Energy Agency lists 68 SMR designs either existing or in development, and the lack of a dominant, proven model could curb commitments from utilities and investors.


Most SMR designs are being developed in the USA, Russia, and China, but the sector is attracting companies from a large number of countries, even those with limited or no nuclear experience, such as Argentina and Poland.


SMRs are defined by the IAEA as having power capacity of up to 300 MWe, and broadly fall into two categories: Gen III/III+ – adaptations of existing LNPP designs that use light water as the coolant; they offer the market familiar, well-


understood technology.


Gen IV – new designs that use different cooling sources, such as helium, molten salt, or molten metal (for example sodium and lead); these are untested technologies with limited or no operating experience.


Fit for purpose


SMR technology has many advantages, but the technology needs to prove that it is fit for purpose. While China and Russia have begun to produce power using SMRs, some promising projects elsewhere have faced setbacks. NuScale’s Idaho Falls project was cancelled in November 2023 due to growing concerns over cost overruns, construction delays, and a declining willingness among project stakeholders to bear the risks associated with first–of–a–kind development.


And bringing an SMR to market will depend on more than just the manufacturer and an ecosystem of stakeholders. The challenges companies face means that governments must create strategies and legislation to help SMRs along the way. The authors of this survey suggest that only a handful of the currently active SMR designs will reach successful commercial deployment, but high uncertainty exists around which will prevail.


6 | June 2025 | www.modernpowersystems.com


Green light for Sizewell C The UK government has given the go-ahead for Sizewell C. This is the first British-owned nuclear power station to be announced in over three decades, with the government as a majority shareholder alongside EDF. Added to the UK’s first generation of small modular reactors, this decision represents a step towards energy independence and the revitalisation of the UK’s nuclear industry. Over 70% of Sizewell C’s construction value will go to UK companies.


Based on the Suffolk Coast close to the sites of Sizewell A and B, the project has been described by the independent consultancy firm Enco as the best-prepared nuclear energy site in modern nuclear history. It is the first nuclear power station in the UK that will be funded through a Regulated Asset Base (RAB) model. Under the model, consumers are protected from the risk of cost overruns.


Sizewell C is projected to provide £1-1.5 billion of annual savings across the electricity system.


Financial close   Poland Wind power


Project joint venture partners Equinor (50%) and Polenergia (50%) have reached financial close for  Baltic Sea off Poland. Final investment decisions for both projects were taken by the project joint venture partners on 19 May.


Two project financing packages of over €3 billion  facilities, have been secured.


The offshore wind projects were awarded Contracts for Difference (CfD) in 2021, securing power prices at approximately €71 per MWh (2021 price) for 25 years, with inflation indexation. Equinor is responsible for the construction phase and will be the operator of the two offshore wind farms. Onshore construction work is ongoing, fabrication of key components has started, while marine operations will start next year. Total power capacity of the projects is 1440 MW, while full commercial power production is expected for 2028. The individual project finance packages will fund the capital investment and the other expenses of each of the projects during the construction process totalling approximately €7.2 billion.


 parallel, largely within the same time schedule, and consist of 100 fixed bottom turbines, placed 22-37 km off the Polish coast.


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