The Advanced Nuclear Framework

About the Framework

The Framework establishes a structured route for government engagement with private developers, guiding them through technical, commercial, and siting considerations before they seek significant government backing. The Framework is split into two parts: (1) the UK Advanced Nuclear Pipeline (the Pipeline) – a new government-managed process of assessing and sequencing next-generation nuclear projects, and (2) a range of Project Enablers – reforms designed to accelerate deployment.

Part I: The UK Advanced Nuclear Pipeline

The Pipeline is a new structured, multi stage process designed to identify credible projects and provide them with a clear route toward deployment. Key features include:

• Project Plans: Developers must submit detailed plans covering technology and supply chain, developer capability, finance, siting, and end-user arrangements.
• Eligibility and Readiness Assessment: DESNZ and Great British Energy - Nuclear (GBE-N) jointly evaluate project maturity and viability.
• Endorsement: Successful projects are accepted into the Pipeline and receive a Statement of Limited, In-Principle Endorsement. This signals project credibility and deliverability to investors. Importantly, only projects in the Pipeline will be considered for government support.
• Financing: Following acceptance into the Pipeline, the government may offer Contract for Difference-style revenue support mechanisms, as well as High-Impact, Low-Probability (HILP) protections. Projects can also seek investment from the National Wealth Fund (NWF).

Part II: Project Enablers

The Framework also looks ahead to some much-needed reforms intended to facilitate deployment of next-generation projects, including:

• Planning Reform: Modernizing planning policy to enable flexible SMR and AMR siting.
• Grid Reform: Grid connection reforms to prioritize ready projects.
• Regulatory acceleration: Pending implementation of recommendations from the Nuclear Regulatory Taskforce to streamline regulatory processes without compromising safety.

What is the Framework’s financing and funding policy?

Participation in the Pipeline does not guarantee access to government financing. The Framework emphasizes that private investors should bear the majority of economic risk. Three potential avenues for funding are identified:

1. Revenue Support: The government may, on a case-by-case basis, provide mechanisms similar to Contracts for Difference that stabilize future revenue, enabling developers to manage market risks and attract investment. Construction costs will not be covered, on the basis that modular nuclear technologies generally have shorter construction phases and reduced upfront costs.
2. HILP Protections: Government may offer HILP protection against rare but severe risks that private markets cannot insure, such as political or regulatory change.
3. National Wealth Fund Investment: The Framework points towards the NWF as a potential source of funding, however that would be the case in any event, and participation in the Pipeline is unlikely to impact materially on whether the NWF provides funding, given the NWF’s independent assessment and investment principles.

What does the Framework mean for the industry and developers?

The Framework signals a strategic focus on advancing modular nuclear technologies in the UK. It positions SMRs, AMRs, and MMRs as key drivers of the government’s net zero and energy security ambitions and highlights opportunities for faster delivery, lower capital intensity, and scalability across multiple sites. This may suggest a continued pivot away from new gigawatt scale projects in the government’s long term nuclear strategy.

For developers, the Framework offers a more predictable route through siting, financing and regulation, addressing the fragmented progress that has slowed earlier initiatives. By setting out clear expectations for early and sustained engagement with regulators, it enables potential issues to be identified and resolved well before formal licensing. Its gated approach also creates more efficient timelines, for instance by ensuring that projects do not reach readiness before site-allocation. The Framework also signals an open market: DESNZ and GBE N have emphasized that credible international vendors are welcome, which may broaden competition and partnership opportunities.

What are the potential challenges?

The central role of GBE-N introduces potential capacity pressures. The pace and effectiveness of the Pipeline will depend on GBE-N’s ability to process submissions, engage with developers, and support multiple projects simultaneously. If GBE-N does not scale up, resourcing bottlenecks could emerge.

Broader structural challenges to the industry persist. Many AMR designs require High Assay Low Enriched Uranium (HALEU), for which global supply is limited and the UK lacks commercial scale capability. Although the government has committed £300 million to establishing a domestic HALEU supply chain, fuel availability remains a constraint on AMR deployment. The UK’s nuclear skills pipeline must also be strengthened to support new projects. While initiatives like the Nuclear Skills Taskforce aim to address this issue, current skills shortages may hinder deployment in the short term.

Looking Ahead

The Advanced Nuclear Framework will not transform the UK’s nuclear landscape overnight, but it marks a shift toward clarity, sequencing, and deliverability for privately led, modular nuclear projects. By establishing a structured Pipeline, strengthening enabling conditions, and signalling long term commitment to modular technologies, the UK is laying the foundations for a new phase of advanced nuclear deployment.

Authored by Malcolm Parry and Antonia Seyfarth.