Power goes nuclear - Nuclear investment and innovation in the UK podcast
A landmark decision to fund Sizewell C using a new investment model is set to unlock a new era of UK nuclear innovation, creating major opportunities across the energy sector and beyond.
Stephenson Harwood’s energy transition team explores these themes in depth in our latest episode, featuring:
- Jonathan Cripps, Head of Energy Transition
- Kirsti Massie, Partner
- Chris White, Of Counsel
- Lord Harrington, Consultant and former Minister of State for Industry
Five key takeaways from this episode
The UK’s nuclear sector is entering a pivotal new phase.
This summer, the government gave the green light to Sizewell C and, in a world-first, backed the project using the Regulated Asset Base (RAB) model. By blending public and private capital, the RAB approach secures funding for new nuclear capacity while sharing risks and rewards more evenly.
A new model for private investment
Sizewell C is the first nuclear project to adopt the RAB model, which offers investors regulated returns during an asset’s lifetime rather than relying on debt repayments. This significantly reduces financing risk and has attracted major investors including EDF, Centrica, La Caisse and Amber Infrastructure. Political consensus around nuclear - driven by the net zero agenda and energy security concerns - is also helping to build long-term investor confidence.
Economic ripple effects across the UK
The benefits of this shift go far beyond Sizewell C. Around 70% of the project’s construction spend is expected to flow to UK businesses, creating tens of thousands of jobs and strengthening the domestic supply chain. The RAB model may also boost the UK’s financial and legal service exports as other countries look to replicate this approach.
Innovation in SMRs and AMRs
The UK holds a competitive edge in Small Modular Reactors (SMRs) and Advanced Modular Reactors (AMRs). Government support for Rolls-Royce SMR, whose design could become a world leader in clean, efficient energy, underlines the UK’s ambition to lead in this field.
SMRs and AMRs offer practical advantages: modular construction cuts build times and political risk, while UK-led supply chains reduce dependency on foreign partners.
Maritime and aviation opportunities
The impact of nuclear innovation extends beyond the power sector. Floating SMRs and nuclear propulsion could reshape the maritime industry, while new technologies could play a transformative role in producing Sustainable Aviation Fuel (SAF). Recent funding for the Lighthouse Green Fuels facility in Teesside shows the UK is positioning itself at the forefront of these developments.
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