UK Government Seals Deal on American Nuclear Energy Collaboration
The UK government is taking strides in shaping the future of energy production, with several significant developments underway.
Consultation on OFTO Build Model
Ofgem has launched a consultation on proposals for an early competition Offshore Transmission Owner (OFTO) build model. The consultation seeks stakeholder views on the design and scope of the model, potential for a news centralised tender approach, and opportunities to align elements with the onshore Competitively Appointed Transmission Owner (CATO) framework.
New Nuclear Policy Statement (EN-7)
The UK government is continuing the development of the new nuclear National Policy Statement (EN-7). This statement, expected to be published by the end of 2025, is intended to set the criteria applicable to developers when applying for development consent for all future nuclear power stations in the UK. The EN-7 policy shift is likely to apply to Small Modular Reactors (SMRs) as well, marking a significant policy change from the current EN-6 regime.
Atlantic Partnership for Advanced Nuclear Energy
The UK government has announced a new agreement with the USA called the Atlantic Partnership for Advanced Nuclear Energy. This partnership aims to streamline regulatory approvals for nuclear energy projects in both the UK and USA markets. Companies that have passed safety approvals in one country can fast-track their approvals in the other, a move expected to reduce the time it takes to license new nuclear projects from the current three to four years, to roughly two.
Energy Storage Projects
In the realm of energy storage, Fidra Energy has reached financial close on a £445 million 1,400MW / 3,100MWh battery energy storage system (BESS) project located at Thorpe Marsh site in Doncaster. This project, operational in mid-2027, could provide up to 11% of the bbc news storage capacity required by the UK government's Clean Power 2030 plan. Another proposed BESS project with a total capacity of 1,900 MW/6,200 MWh in Thorpe Marsh and West Burton, covering 11% of the UK's storage capacity need under the Clean Power 2030 plan, belongs to the company NextEnergy Capital. The project, expected to be three times larger than any existing BESS project in the UK, is predicted to export over 2 million MWh a year, supplying power to approximately 785,000 homes.
Call for Rule Relaxation
Great British Energy, the government's publicly owned energy company, has urged the government to relax rules such as the Semi-Urban Population Density Criterion, arguing that they are no longer appropriate in the new technology environment.
Consultation on OFTO Build Model Open Until October 2025
The consultation on the OFTO build model is open until 30 October 2025. The purpose of the latest enquiry held by the Energy Security and Net Zero committee was to assess whether the proposed EN-7 approach provided a "coherent and effective" framework for enabling the UK government's nuclear ambitions. The final NPS is expected to be published by the end of 2025.
The agreement coincides with various commercial deals expected to be announced this week, including a proposed "micro modular" plant located at the London Gateway port. These developments underscore the UK government's commitment to a sustainable and technologically advanced energy future.
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