The UK Department for Business, Energy & Industrial Strategy has announced a new £120 million Future Nuclear Enabling Fund to support future UK new nuclear energy uptake.

It will be used to develop new nuclear projects in all regions of the UK, stimulate competition in the industry, unlock UK investment and encourage “new players into the market”.

The Future Nuclear Enabling Fund will help to realise the government’s ambition to approve eight new reactors by 2030, as committed to in the British Energy Security Strategy in April.

Competitively allocated government grants will be provided which will help nuclear construction projects, including small modular reactors, to attract the private investment they need to help make them a reality.

As the price of energy soars across Britain, nuclear power is set to become a key part of the UK’s energy mix, helping to reduce dependence on global gas markets, boosting UK energy independence, protecting consumers from high energy bills, and stimulating investment in nuclear as a future clean energy technology.

Announcing the launch of the fund, Business and Energy Secretary Kwasi Kwarteng said: “Our new £120 million fund will push forward our plan to deploy a new fleet of nuclear power stations as part of a British nuclear renaissance.

“By encouraging new companies to come forward and build in Britain, we can spur greater competition in the market to cut development costs so consumers benefit in the long-term.

“Nuclear is central to our long-term plan to bolster the UK’s energy security with cheaper, cleaner, home-grown power, while creating thousands of high-skilled jobs across our country.”

Energy Minister Greg Hands added: “This government is backing nuclear power as a critical part of our British Energy Security Strategy.

“This fund will accelerate the development of new nuclear – from SMRs to larger-projects – and bring fresh innovation into the market.”

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The fund is expected to support industry investment in nuclear, which will offer opportunities for projects in every region of the UK and create high-skilled jobs, as well as boosting the resilience and capability of UK nuclear supply chains.

The government has asked interested parties to register their interest in bidding for funding and inviting further information on potential future projects.

Additionally, it is also inviting nuclear stakeholders who are not planning on bidding for the fund to provide information from their experience that will help to mature fund design ahead of opening the bid window in summer 2022.

Despite the announced nuclear energy fund, the Scottish Government has previously said it has “no intention” of building more nuclear sites in Scotland.

The Government said it expects the contribution that nuclear power makes to the energy mix will decrease, and instead is looking to put a focus on the ample renewable energy sources available in Scotland.

Published in 2017, the Scottish Energy Strategy confirmed the Government’s “continued opposition to new nuclear stations, under current technologies”.

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