U.S. Nuclear Pact Signed by UK Government in Energy Shift Undertaking
The UK government has announced a significant development in its nuclear energy sector with the launch of the Atlantic Partnership for Advanced Nuclear Energy, a new agreement with the USA. This partnership is expected to accelerate the licensing of new nuclear projects and boost the UK's nuclear output in the medium term.
Under the agreement, companies that have passed safety approvals in the USA will be able to fast-track their approvals in the UK market, and vice versa. This collaboration is set to coincide with various commercial deals, including the proposed "micro modular" plant by Last Energy and DP World at the London Gateway port.
The UK government is also continuing the development of the new nuclear National Policy Statement (EN-7). EN-7 is intended to set the criteria applicable to developers when applying for development consent for all future nuclear power stations in the UK. The project, expected to be operational in mid-2027, will be three times larger than any existing battery energy storage system (BESS) project within the UK and among the largest in Europe.
Fidra Energy has already made strides in this sector, announcing it has reached financial close on a £445 million BESS project, located at its Thorpe Marsh site in Doncaster. This project, paired with a planned 500MW / 1,100 MWh BESS project at West Burton, Nottinghamshire, could provide up to 11% of the storage capacity required by the UK government's Clean Power 2030 plan.
The UK government's new EN-7 policy is predicted to export over 2 million MWh a year, which can supply power to an estimated 785,000 homes. However, the government is currently assessing whether the proposed EN-7 framework goes far enough, with Great British Energy urging the government to relax rules such as the Semi-Urban Population Density Criterion.
The consultation on EN-7 seeks stakeholder views on the design and scope of the early competition OFTO build model, potential for a centralized tender approach, and opportunities to align elements with the onshore Competitively Appointed Transmission Owner (CATO) framework. The consultation is open until 30 October 2025, and interested stakeholders can send responses to [email protected].
Tom Greatrex, chief executive of the Nuclear Industry Association, commented that EN-7 could help provide a platform for the government to reach the target set for gigawatt capacity (24GW). Alastair Evans, director at Rolls Royce SMR, stated that EN-7 takes "the right approach" to enabling the UK to increase its overall nuclear output in the medium term.
The final NPS is expected to be published by the end of 2025. The new deal is expected to reduce the time it takes to license new nuclear projects from the current three to four years, to roughly two. The UK government hopes that these developments will contribute significantly to the country's energy security and sustainability goals.
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