Britain’s Nuclear Legacy and Its Future

The United Kingdom was once the cradle of commercial nuclear power, yet today it draws only a modest share of its electricity from the technology. A wave of new investments is now aimed at reversing that trend.

Historically, the UK hosted more nuclear reactors than the United States, the former Soviet Union and France combined. It remained a global leader until the early 1970s, but the last reactor to enter commercial service—Sizewell B—was commissioned in 1995.

At present, the UK is known not for being a nuclear champion but for being the most expensive place on the planet to construct a nuclear plant. In 2023 nuclear accounted for just 14 % of the nation’s electricity mix, according to the International Energy Agency, well below the European average and far behind France, where nuclear supplies about 65 % of power.

Policy makers have set a target of delivering 25 % of the country’s electricity from nuclear by 2050. Nuclear provides a low‑carbon, baseload source that can complement intermittent renewables such as wind and solar.

“There is a clear momentum,” said Doreen Abeysundra, founder of consultancy Fresco Cleantech. “Geopolitical tensions have pushed energy security and independence to the top of the public agenda.”

However, the Nuclear Regulatory Taskforce has warned of “systemic failures” in the UK’s nuclear framework, citing fragmented regulation, outdated legislation and weak incentives. The government has pledged to adopt the taskforce’s recommendations within the next three months.

The UK is pursuing a dual strategy: large‑scale reactors on the traditional gigawatt scale and a new generation of small modular reactors (SMRs).

Rolls‑Royce has been appointed the preferred domestic partner for SMR development. These factory‑built, containerised reactors rely on passive cooling systems that proponents argue make them safer and cheaper to deploy.

SMRs largely use proven light‑water reactor technology—essentially a “shrunken” version of the classic designs that will power the proposed Sizewell C plant. More experimental “advanced” concepts are also under investigation, including reactors that use lead or molten salt as a coolant.

The first UK SMR installation is slated for the former Wylfa site in Wales. The plan calls for three units to be built in stages, although an exact timeline has not yet been announced.

In September, the UK signed a bilateral agreement with the United States to streamline nuclear licensing and encourage cross‑Atlantic commercial collaborations.

Despite the enthusiasm, investors remain cautious. “There is not a single SMR actively producing electricity today,” noted Ludovico Cappelli, portfolio manager at Van Lanschot Kempen. “Commercial operation is unlikely before the 2030s, which makes the investment case a bit risky.”

For baseload capacity needed to offset renewable intermittency, industry analysts still see a role for traditional gigawatt‑scale plants. “We’re still looking at big power stations to secure reliable supply,” said Paul Jackson, global market strategist for Invesco.

The UK has been a pioneer in creating financing structures that reduce the fiscal exposure of large nuclear projects. The Contract‑for‑Differences (CfD) model, first applied to Hinkley Point C, guarantees a fixed price for electricity over a long period, de‑risking revenue uncertainty.

While the CfD mitigates price risk, construction overruns remain a major concern. The Regulated Asset Base (RAB) approach—used for Sizewell C—allows investors to receive returns from the moment capital is deployed, rather than waiting for the plant to become operational.

Sizewell C is now projected to cost around £38 billion, reflecting the higher cost base of nuclear in the UK. Private capital is increasingly attracted by next‑generation nuclear technologies that promise to meet the soaring energy demand of data centres and AI workloads.

Among the emerging players, the US‑based firm Oklo went public via a special‑purpose acquisition company backed by OpenAI’s Sam Altman, underscoring the growing intersection of AI‑driven venture capital and advanced nuclear development.

In Europe, the UK‑originated Newcleo—known for its lead‑cooled fast reactor—relocated its headquarters to Paris in 2024 to strengthen its European market presence. Although the company has scaled back its UK activities, it still targets a commercial launch by the early 2030s.

Fusion research is also receiving significant public support. The UK government allocated £2.5 billion in June for a world‑first prototype fusion power plant, a long‑term bet that could eventually complement fission‑based generation.

Talent shortages are a critical bottleneck for scaling nuclear projects. While the UK boasts world‑class universities, critics argue that much of the expertise remains academic rather than hands‑on.

“What we need is real on‑the‑ground expertise,” said Cappelli. “We haven’t built new reactors for a long time, so the practical know‑how is thin.”

Abeysundra, however, highlighted the UK’s cultural strengths: “The country’s innovative mindset and can‑do attitude—rooted in the Industrial Revolution and offshore wind—are assets that can accelerate nuclear deployment.”

The government’s Clean Energy Jobs Plan, released in October, positions nuclear as a cornerstone of the future green workforce. A national roadmap for nuclear skills, unveiled in 2024, emphasizes apprenticeships, PhD programmes and mid‑career upskilling. Industry initiatives such as the Energy Skills Passport also help transition workers from oil and gas to low‑carbon roles.

Supply‑chain security is arguably the toughest challenge facing the nuclear renaissance. Uranium— the primary fuel for fission reactors—is sourced from a narrow set of producers, including Russia.

According to the World Nuclear Association, global uranium demand could rise by roughly one‑third by 2030 and more than double by 2040, intensifying reliance on a limited number of suppliers.

The UK government has earmarked funding to bolster domestic and allied supply‑chain capabilities and has pledged to end imports of Russian nuclear fuel by 2028. Fuel for Sizewell C, for example, will be sourced from European or “Western” suppliers.

“We have to build nuclear plants, but we also need to build the value chain,” noted Cappelli. “Otherwise we face the same concentration risks we saw with gas—only now the vulnerability is in uranium.”