The UK Government’s overall aim for its energy policy is to ensure secure, affordable and clean energy supplies. To realize this, the Government is helping to ensure the efficient functioning of the electricity market, taking action on climate change and defining the future generation mix of the UK.

Electricity market

The UK Government’s aim is for competitive electricity markets in which firms succeed only where they create value for consumers and with as little day to day government intervention as possible. However, intelligent market design and independent regulation remain central to a competitive market. Ofgem was established as the independent regulator for gas and electricity markets in Great Britain (i.e. England, Wales and Scotland), and aims to protect the interests of consumers.

Support for low carbon technologies in the UK (including nuclear power) is delivered through the Contracts for Difference (CFDs) regime, which offers long term contracts providing a fixed price for an installation’s output. CFDs offer top up payments to generators when the wholesale price of electricity is below a fixed level (the ‘strike price’). In response to less predictable wholesale prices (caused by a changing technological mix), the UK Government also introduced a capacity market mechanism to secure the capacity required to meet peak demand. Competitive auctions are held four years and one year ahead of delivery. This creates an additional source of revenue as companies sell their electricity on the wholesale market, balancing services on the balancing market and their capacity on the capacity market.

The UK Government also continues to promote energy efficiency through the tax system (including the European Union emissions trading system (EU ETS), climate change levy (CCL) and carbon reduction commitment (CRC) Energy Efficiency Scheme); financial incentives, such as enhanced capital allowances for investment in energy saving plants and machinery, and the electricity demand reduction (EDR) pilot; energy audits including the Energy Saving Opportunity Scheme (ESOS); energy and carbon reporting; and setting minimum standards for building performance

Climate Change

The UK remains committed to tackling climate change on both the international and domestic levels. In November 2016, the UK ratified the Paris Agreement, confirming its commitment to climate action across the world. Domestically, the UK Government remains committed to the UK’s Climate Change Act 2008.⁽¹⁾

The Climate Change Act introduced the UK’s legally binding 2050 target to reduce greenhouse gas (GHG) emissions by at least 80% relative to 1990 levels. Provisional statistics indicate that UK emissions in 2016 were 42% lower than in 1990 and a further 6% below those in 2015. The Climate Change Act also introduced carbon budgets which cap emissions over successive five year periods and must be set 12 years in advance. The Fifth Carbon Budget (covering 2028–32) was passed into law on 21 July 2016.⁽²⁾ This budget is set in line with the recommendation of our independent advisers, the Committee on Climate Change, at 1725 MtCO₂e, equivalent to a 57% reduction on 1990 levels.

The EU Renewable Energy Directive 2009/28/EC also includes a legally binding obligation for the UK Government to deliver 15% of the UK’s final energy consumption across electricity, heat and transport from renewable sources by 2020.⁽³⁾ The UK Government is currently progressing in line with the trajectory set out in the Renewable Energy Directive, having met the directive’s interim targets for 2011/12 and 2013/14. In 2015 alone, 8.3% of energy came from renewable sources.

Future generation mix

There is a long-standing consensus that unabated coal generation is not consistent with decarbonization. Consequently, replacing coal with lower carbon forms of generation is one of the most effective ways of achieving significant cuts in emissions. The UK Government has recently consulted on proposals to end unabated coal power generation by 2025.⁽⁴⁾ The use of coal in the electricity mix has fallen from 40% in 2012 to 22% in 2015 to a record low of 9% in 2016.

As the UK reduces dependency on coal, particularly coal fired power stations, gas will remain an important fuel for decades to come and will allow a manageable and sustainable transition to a lower carbon future. The use of gas in the generation mix was also significantly up in 2016 to 42% from 30% in 2015, but remained down in the peak period of 2008 to 2010, where it peaked at 46% in 2010. The UK Government is encouraging investment in shale gas exploration so we can add new sources of homegrown supply to our diversity of imports. In the long term it is expected that North Sea gas production will decline, leading to greater dependency on imports (via the global liquefied natural gas trade and pipelines to continental Europe) and unconventional gas.

The UK electricity generation mix has shifted since 2006, with 25% from renewables in 2016 as compared to 5% in 2006.

The UK Government remains committed to nuclear power as an important part of our electricity generation mix, due to its capacity to provide reliable baseload and decarbonize the electricity system.

The Scottish Government opposes construction of new nuclear power stations, under current technologies.⁽⁵⁾ The Scottish Government is aware of increasing interest in the development of new nuclear technologies and will assess new technologies and low carbon energy solutions, and will continue to do so based on their safety case, value for consumers and their contribution to Scotland’s low carbon economy and energy future.

UK oil and gas production has declined at a faster rate than consumption, resulting in the country’s return to being a net energy importer in 2004. Oil remains important to the UK’s energy mix, accounting for about a third of the UK’s total primary energy consumption. The UK is a significant producer of natural gas; however, the country increasingly relies on natural gas imports.

TABLE 1. ESTIMATED AVAILABLE ENERGY SOURCES

—: Data not available.

Source: Department for Business, Energy and Industrial Strategy.

In 1970, fuel consumption was dominated by solid fuel use (47% of all energy consumption in the UK) and petroleum (44%), with gas contributing a further 5%. By 1980, the fuel mix had evolved, with natural gas making up 22% of all energy consumption in the UK, along with solid fuels (36%) and petroleum (37%). In 1990, the split between fuels was similar to that in 1980. However, by 2000, with changes in electricity generation, natural gas consumption had become the dominant fuel, responsible for 41% of all energy consumption in the UK, while solid fuels had fallen from 31% in 1990 to 16% in 2000. By 2010, more renewable fuels entered the energy mix, and contributed 9% of all energy consumption in 2015. In the same year, the share of gas in energy consumption fell from 43% in 2010 to 35%. Table 2 shows the change in fuel consumption every ten years, between 1970 and 2000, and then every five years, between 2000 and 2015 (the latest year for which data is available).

TABLE 2. ENERGY STATISTICS

—: Data not available.

Source: Department for Business, Energy and Industrial Strategy.

With respect to Great Britain, responsibility for energy policy rests with the UK Government and Parliament. However, energy projects may involve areas of competence that have been devolved to the respective administrations of Scotland and Wales.

Within the Government, lead responsibility for energy matters outside Northern Ireland rests with the Department of Business, Energy and Industrial Strategy.

In Northern Ireland, energy matters and associated issues (such as energy consents and planning) are largely devolved to the Northern Ireland Executive. The main exception is nuclear energy, which is dealt with by the UK Government and Parliament.

Electricity distribution networks carry electricity from the transmission systems and some generators that are connected to the distribution networks to industrial, commercial and domestic users.

There are 14 licensed distribution network operators (DNOs), each responsible for a distribution services area. The 14 DNOs are owned by six different groups. There are also four independent network operators, who own and run smaller networks embedded in the DNO networks.

Domestic and most commercial consumers buy their electricity from suppliers who pay the DNOs for transporting their customers’ electricity along their networks.

The wholesale electricity market in England and Wales was reformed on 27 March 2001, when the Electricity Pool was replaced by New Electricity Trading Arrangements (NETA). This arrangement was extended to Scotland on 1 April 2005 with the introduction of the British Electricity Transmission and Trading Arrangements (BETTA).

The key features of BETTA are:

1. A forward market where generators are able to contract with suppliers and large customers for the physical delivery of electricity. Such contracts can be struck close to the time of delivery or a year or more ahead.

2. Two power exchanges (N2EX and APX Endex) to enable participants to refine their contract positions, through day ahead auctions and continuous trading close to real time, in the light of current information (e.g. on the weather).

3. A balancing mechanism, operating from one hour ahead of real time up to real time, managed by the National Grid Company (NGC). As electricity cannot be stored, NGC needs to manage the grid system on a second by second basis, and the balancing mechanism is the facility under the new arrangements which allows it to do this. However, the vast majority of trading takes place on the forward markets rather than in the balancing mechanism.

4. Associated OTC and exchange based derivatives markets (only on N2EX) to enable market participants to manage commercial risks.

5. A settlement process to deal with the financial settlement of balancing mechanism trades, and to deal with those whose generation or consumption of electricity is out of balance with their contracted position.

Transmission Networks

The onshore transmission network is owned by three licensed transmission owners (TOs): National Grid Electricity Transmission (NGET) in England and Wales, Scottish Hydro-Electric Transmission Ltd (SHETL) in Northern Scotland and Scottish Power Transmission (SPT) in Southern Scotland.

NGET is also the National Electricity Transmission System Operator (NETSO), and is responsible for overseeing and managing (balancing) the flow of electricity across the whole of the transmission network. This includes the elements owned and operated by SPT and SHETL. From April 2019, NETSO will become more independent from NGET within the National Grid, in order to mitigate perceived conflicts of interest and be ready to adapt further as system challenges continue to evolve. The National Grid also coordinates connection offers to new generators.

Distribution Networks

There are 14 licensed DNOs, each responsible for a geographical distribution services area. The 14 DNOs are owned by six different private companies.

A new regulatory framework for offshore electricity transmission has been put in place. A key element to this framework is a competitive tender process run by Ofgem, to appoint offshore transmission owners (OFTOs) to construct (where appropriate), own and operate the offshore transmission assets.

In Northern Ireland, all the electricity transmission and distribution lines are owned by Northern Ireland Electricity Networks Ltd (NIEN Ltd). The transmission system operator is System Operator Northern Ireland (SONI). SONI works in partnership with its counterpart in the Republic of Ireland, EirGrid, to act as the single energy market operator (SEMO) for the all island wholesale market for electricity, established in 2007.

Electricity Generation

Most electricity is generated at large power stations connected to the national transmission network. However, electricity can also be generated in smaller scale power stations which are connected to the regional distribution networks. The number and type of power station built is the decision of each individual company, based on market signals and government policy on issues such as the environment. There are many companies in the electricity generation sector, from large multinationals to small, family owned businesses running a single site.

Suppliers buy electricity from generators in the wholesale market and sell it on to customers. Suppliers work in a competitive market, and customers can choose any supplier to provide them with electricity.

Regulation of electricity markets in England, Wales and Scotland is the responsibility of the Gas and Electricity Markets Authority (GEMA) (the governing body of the energy regulator Ofgem), which is bound by statutory duties set out in the Electricity Act 1989. Members of the authority are appointed by the Secretary of State. The authority’s principle objective is to protect the interests of consumers.

An application for a new power station with a capacity of over 50 MW in England and Wales requires the consent of the Secretary of State (consent powers are devolved in the case of plants in Scotland and Northern Ireland). In England and Wales, applications are made to the Planning Inspectorate (PINS) which, once it has accepted the application, will conduct an examination of the application including environmental assessment. Once the examination is complete, PINS will report its conclusions and recommendation to the Secretary of State. The processes of examination, recommendation and decision have defined timescales by which they must be completed.

In 2015, the energy industries contributed about 2.5% to GDP at basic prices. This is down from 3.1% in 2014, due to the fall in oil prices and is well below the peak level of 10.4%, achieved during the early 1980s. However, since then, energy gross value added (GVA) has grown by an average of 1.0% per year, with the lower share a result of wider growth in the economy.

TABLE 3. INSTALLED CAPACITY, ELECTRICITY PRODUCTION AND CONSUMPTION

Source: Department for Business, Energy and Industrial Strategy.

TABLE 4. ENERGY RELATED RATIOS

Source: Department for Business, Energy and Industrial Strategy.

The UK has had a wide range of nuclear power plants (NPPs) with a range of designs that span nearly 50 years. The first NPPs, the Magnox reactors, started operation between 1956 and 1971. These were carbon dioxide gas cooled graphite moderated reactors that used natural (or in some cases very slightly enriched) uranium fuel in a magnesium alloy cladding. The first nine NPPs had steel reactor pressure vessels while the last two (at Oldbury and Wylfa) had pre-stressed concrete reactor pressure vessels. These later designs had significant safety advantages over the steel pressure vessels since a sudden and unexpected failure of the main pressure vessel boundary was deemed to be virtually impossible. However, the use of natural uranium with magnesium alloy cladding limited the development of the Magnox technology. As a result, the second generation of gas cooled reactors to be developed in the UK were the advanced gas cooled reactors (AGRs). Seven NPPs were commissioned between 1976 and 1988, each with two reactors. AGRs use enriched uranium oxide fuel in stainless steel cladding. This, together with the pre-stressed concrete pressure vessel, allow gas outlet temperatures of over 600^oC and gas pressures of over 30 bar. The most recent NPP to be built in the UK is the pressurized water reactor (PWR) at Sizewell B. The reactor became operational in 1995 and uses enriched uranium oxide fuel clad in Zircaloy and pressurized water as the coolant.

Following a public consultation in 2007, the UK Government published Meeting the Energy Challenge: A White Paper on Nuclear Power in January 2008.⁽⁶⁾ The white paper set out the Government’s view that it was in the public interest to give the private sector the option of investing in new nuclear power stations as part of the UK’s strategy to tackle the challenges of climate change and security of energy supply. The UK Government considers nuclear energy, together with renewable resources and carbon capture and storage, as key elements to reduce carbon dioxide (CO₂) emissions by 80% by 2050.

The Clean Growth Strategy, published in September 2017, confirmed the Government’s commitment to delivering new nuclear through Hinkley Point C and furthering discussions with developers to secure a competitive price for future projects in the pipeline.

Energy companies have at present announced ambitions to construct up to 18 GW of new nuclear power capacity, with the first station at Hinkley Point C in Somerset scheduled to come online at the end of 2025.

• Government authorities: Department for Business, Energy and Industrial Strategy (BEIS); Scottish Government; Welsh Government; Northern Ireland Executive.

• Independent nuclear regulator: Office for Nuclear Regulation (ONR).

• Environmental regulator: Environment Agency (EA; England), Natural Resources Wales (NRW; Wales), Scottish Environment Protection Agency (SEPA; Scotland), Northern Ireland Environment Agency (Northern Ireland).

• Advisory body on radiation issues: Public Health England (PHE).

• Advisory body on radioactive waste issues: Committee of Radioactive Waste Management (CoRWM).

• Research and Development: National Nuclear Laboratory (NNL).

• Nuclear Power Plants Operator: British Energy (majority owned by EDF (Électricité de France).

• Nuclear new build: NNB Genco (EDF/CGN), Horizon Nuclear Power (Hitachi), NuGen (Toshiba).

• Enrichment: Urenco Ltd (Capenhurst).

• Fuel fabrication: Springfields Fuels Ltd (Springfields).

• Decommissioning: Nuclear Decommissioning Authority (NDA) (Sellafield Ltd, Magnox Ltd, Dounreay Site Restoration Ltd).

• Reprocessing and packaging: Sellafield Ltd.

• Radioactive waste management: Nuclear Decommissioning Authority (Radioactive Waste Management Ltd, Low Level Waste Repository Ltd).

The UK has 19 nuclear licensed sites with operating or historic NPPs; Reactors at 11 of these licensed sites are shut down, defueling or decommissioning, and eight are operating sites. As of the end of March 2017, there were 15 licensed reactors with a combined capacity of close to 9 GW operating in the UK.

The largest nuclear operator is EDF Energy UK Ltd, a wholly owned subsidiary of Électricité de France (EDF), which purchased a majority (80%) stake in British Energy Group plc in January 2009 (the remaining 20% stake is owned by Centrica). It runs the eight operating NPPs, seven of which are the AGRs (a total of 14 reactors) and the remaining plant is the PWR at Sizewell B (one reactor). Table 5 shows the status of the NPPs in the UK up to 31 December 2016. There are no current or proposed NPPS in Northern Ireland.

TABLE 5. STATUS OF NUCLEAR POWER PLANTS

Nuclear sites are licensed by the Office for Nuclear Regulation (ONR), the regulator responsible for overseeing their safe operation. The UK has been undertaking safety reviews of its civil nuclear installations for many years as part of the regulatory process. UK nuclear site licences require periodic safety reviews (PSRs) to be carried out, which means that the UK continually monitors and aims to improve the safety of its nuclear installations. The main PSRs are carried out every ten years. However, intermediate reviews are carried out at more frequent intervals and any identified necessary upgrading measures are implemented. Additionally, several of the licensees are looking to better integrate the periodic review into enhanced continuous improvement programmes that will deliver improvements throughout the station life.

All of the 11 Magnox NPPs have ceased operating and are in varied states of defueling and decommissioning. Wylfa, the last of the operating Magnox NPPs, shut down in December 2015 and is currently being defueled. The Nuclear Decommissioning Authority (NDA), which was established in 2005 under the Energy Act 2004, is responsible for a UK wide strategic focus on decommissioning and cleaning up of the nuclear legacy sites, including the Magnox NPPs. In 2016, the NDA published its strategy for tackling the nuclear legacy decommissioning and cleanup programme, safely, securely, cost effectively and in ways that protect people and the environment.⁽⁷⁾

The UK reactor fleet is comparatively old and this inevitably gives rise to safety related ageing issues that need to be monitored and, where necessary, addressed. Some ageing issues are controlled and managed by maintenance and replacement of components. Other issues, such as the degradation of the graphite core affect items that cannot be replaced and therefore are closely scrutinized to ensure safety is maintained and, when appropriate, to determine when ageing could lead to the end of life of a reactor.

EDF is undertaking a programme of investment that will allow its AGR fleet to run for an average of seven years beyond their previous indicative closure dates, and the PWR at Sizewell B to run for an additional 20 years. The current plant life extension programme (PLEX) is roughly as follows:

Source: Department for Business, Energy and Industrial Strategy.

Responsibility for decommissioning of nuclear power reactors in the UK lies with the Nuclear Decommissioning Authority. Full details of the UK’s decommissioning strategy and the current situation and plans for individual shutdown reactors can be found in the NDA’s strategy⁽⁸⁾ (effective from April 2016) and Business Plan 2017–2020⁽⁹⁾.

TABLE 6. STATUS OF DECOMMISSIONING PROCESS OF NUCLEAR POWER PLANTS

Note: For the ‘Decommission strategy’ column, the baseline decommissioning strategy for all plants is deferred decommissioning for around 85 years following shutdown.

n.a.: Data not applicable.

Source: Department for Business, Energy and Industrial Strategy.

The Government has taken a series of facilitative actions to encourage nuclear new build, and industry has proposed up to 17.8 GW of new build capacity. The first reactor, at Hinkley Point C, is under construction and scheduled to come online in 2025, and there are proposals for a further five plants:

• EDF and CGN (as NNB Generation Company (NNBG)) are currently constructing two EPRs at Hinkley Point C (3.2 GW)

• EDF and CGN have plans for an additional two EPRs at Sizewell (3.2 GW). The two companies also intend to deploy HPR1000 technology at Bradwell.

• Horizon Nuclear Power, owned by Hitachi-GE Nuclear Energy Ltd, proposes to build two advanced boiling water reactors (ABWRs) at each of its sites in Wylfa and Oldbury (2.7 GW each).

NuGen, currently owned by Toshiba, proposes to build up to 3.8 GW of nuclear power generation at the Moorside site near Sellafield. In December 2017, it was announced that Korea Electric Power Corporation (KEPCO) had been chosen by Toshiba as the ‘preferred bidder’ to acquire NuGen.

Alongside new nuclear build (on the large GW scale) the Government has also undertaken several initiatives to explore the potential of small and advanced reactors. The first tranche of these initiatives was the commissioning of a techno-economic assessment of small modular reactors (SMRs) which was published in December 2017. The Government also launched a SMR competition which concluded in December 2017.⁽¹⁰⁾ Current UK advanced nuclear technology policy focuses on exploring the right market conditions to enable developers to bring new reactors to market alongside supporting the development of advanced reactor technologies that use novel fuel or coolants for new applications.

The UK Government announced three initiatives in December 2017 to support the development of advanced nuclear technologies. These initiatives included:

• Up to Ł44m for a two phase research and development (R&D) programme to assess the technical and commercial feasibility of advanced modular reactors (AMRs);

• Up to Ł12m for the UK regulators to increase their capability and capacity to assess and licence new reactors designs;

• The creation of an Expert Finance Working Group to advise the UK Government on the potential for small nuclear reactor projects to raise private investment.

Generic design assessment (GDA) is one of the facilitative actions set out in the Nuclear White Paper 2008 and is undertaken by the Office for Nuclear Regulation (ONR) and the Environment Agency. GDA is a voluntary process that allows regulators to begin consideration of the generic safety, security and environmental aspects of designs for NPPs prior to applications for site specific licence and planning consents.

For new nuclear build, section 45 of the Energy Act 2008⁽¹¹⁾ requires prospective nuclear operators to submit a funded decommissioning programme (FDP) for approval by the Secretary of State for Business, Energy and Industrial Strategy. The UK Government published FDP statutory guidance in December 2011⁽¹²⁾ to assist operators in developing their programmes. This will ensure that operators of new nuclear power stations make secure financial provisions for their waste and decommissioning liabilities from the outset.

TABLE 7. PLANNED AND PROPOSED NUCLEAR POWER PLANTS

Source: Department for Business, Energy and Industrial Strategy.

TBC: To be constructed.

Project management will be the responsibility of the commercial developers involved in the new nuclear programme in the UK.

The Government engages with new build developers on a range of issues relevant to the delivery of future projects, including financing. Developers engage with potential investors on their projects and discuss financing issues with the Government. The details of these discussions are commercially sensitive. In line with the Public Accounts Committee’s recommendations with respect to Hinkley Point C, the Government will keep under consideration a range of financing options when deciding how to proceed with future new nuclear projects. The Government has announced that it is entering negotiations in relation to the proposed Wylfa Newydd project, which will consider direct Government investment. The Government is continuing discussions with other developers on their plans for further projects and alongside these discussions it will review the viability of a regulated asset base model as a sustainable funding model, based on private finance for future projects beyond Wylfa.

Significant investment is taking place in the GB electricity network infrastructure in this decade and beyond to ensure the timely connection of low carbon generation plants, including to accommodate new nuclear generation on the transmission network.

The onshore transmission network in GB is built, owned and operated by three transmission owners, which, as regulated monopolies, require approval from the independent regulator, Ofgem, to fund their activities, such as building new networks and maintaining assets. This is primarily agreed through price controls whereby the network companies submit business plans to Ofgem for approval, presenting the outcomes they intend to deliver and the costs for doing so.

For the latest transmission price control (RIIO-T1) that runs from 2013 to 2021, Ofgem agreed funding of up to Ł21.5 billion for the transmission owners to expand, replace and maintain the GB transmission network. This will help ensure that the network can accommodate new generation and demand in a cost effective and timely manner.

There are currently three major transmission projects under development by the National Grid, to connect proposed new nuclear generation:

• The Hinkley Point C Connection between Bridgwater and Avonmouth in southwest England for Hinkley Point C, for which development consent was granted in January 2016;

• The North West Coast Connections in Cumbria, for Moorside, for which the National Grid is preparing an application to submit to the Planning Inspectorate;

• The North Wales connection, the proposed second connection for the Wylfa Newydd nuclear power station on Anglesey, for which the National Grid is also preparing an application to submit to the Planning Inspectorate.

The Government’s National Policy Statement (NPS) for Nuclear Power Generation (EN-6) published in July 2011⁽¹³⁾ establishes the case for new nuclear power stations at sites capable of deployment by 2025. It explains the need for new infrastructure and how the impacts of development should be assessed. The list of potentially suitable sites for the deployment of new nuclear power stations was an output of the Government’s strategic siting assessment (SSA) process. Eight potential sites were selected, all of which are located next to existing nuclear facilities. Detailed site selection information can be found in the NPS on the Government web site⁽¹⁴⁾.

The Government is working towards designating a new NPS for nuclear power stations with single reactor capacity over 1 GW at sites capable of deployment between 2026 and 2035. Subject to the outcome of a consultation on the siting criteria and process for the new NPS, the Government’s preliminary view is that the sites listed in EN-6 are likely to be those which can deploy the soonest and are the only sites capable of deploying a nuclear power station by 2035.

The Nuclear Sector Deal⁽¹⁵⁾ published in June 2018 stated that the Government is actively considering the question of siting for small and advanced reactors.

UK Government engagement with stakeholders on civil nuclear issues is described in Section 2.10.

In the UK, the majority of civil nuclear R&D funding comes from the public sector. Public sector spending comes through a range of channels, including the NDA, Research Councils UK, Innovate UK and through direct commissioning from Government departments.

For applied research, the UK National Nuclear Laboratory (NNL) operates as a government owned commercial enterprise and focuses much of its efforts on applied research with direct industrial uses, alongside technical consultancy services to the Government.

The UK also carries out nuclear fusion research. The UK Atomic Energy Authority (UKAEA) is the public body that leads the UK’s research into fusion technology and hosts the Culham Centre for Fusion Energy (CCFE) in Oxfordshire. UKAEA operates the world’s most advanced nuclear fusion reactor, the Joint European Torus (JET) through a Ł50 million per year contract with the EU. UKAEA also owns and operates the smaller experimental fusion reactor MAST-U, and is building the National Fusion Technology Platform (NaFTeP). Via its membership in the EU, the UK participates in the International Thermonuclear Experimental Reactor (ITER) project, an international fusion facility under construction in France.

Government expenditure on nuclear R&D totalled around Ł135 million in 2016/2017; in addition, between 2012/13 and 2015/16 the Government made interventions and invested approximately Ł60 million in total in new nuclear research facilities (including Ł16 million for a National Nuclear User Facility, Ł8 million for a Nuclear Fuel Centre of Excellence and Ł12.5 million towards the construction of the international Jules Horowitz Research Reactor). Of the approximately Ł135 million spent in 2016/2017, the NDA spent around Ł85 million on R&D towards waste and decommissioning activities, while Research Councils UK spent around Ł25 million on fission reactor related research and the equivalent on fusion research. Over the past decade, Research Councils UK investment in nuclear fission related research and training has increased from Ł3 million in 2006/2007 to around Ł12 million per year since 2012/2013. This will increase further between 2017 and 2021 with additional investment of Ł27 million in three robotics and artificial intelligence for nuclear hubs.

In addition to the regular annual expenditure on nuclear R&D, the Government expects to invest Ł180 million in nuclear innovation between 2016 and 2021. Of this, Ł28 million was announced in 2017 to support innovation in the civil nuclear sector across five major areas from fuel to advanced manufacturing, and up to Ł56 million to support the design of advanced nuclear technologies. In 2018, the Government made further commitments of Ł40 million to develop a new thermohydraulics facility, Ł20 million for advanced manufacturing and construction and Ł86 million to create a new National Fusion Technology Platform for the provision of a world leading set of nuclear research and innovation facilities in tritium and fusion technology to develop European capability to support the ITER project.

The UK’s nuclear R&D capability is distributed across a wide range of public and private sector organizations, including universities, national labs and industrial companies. This landscape has driven the establishment of organizations to facilitate cooperation and long term technology needs analysis. This includes the Nuclear Innovation and Research Advisory Board (NIRAB), originally established by the Government between 2014 and 2016 and relaunched in 2018, which brings together representatives from sectors active in nuclear R&D in order to recommend future choices in R&D to the Nuclear Innovation and Research Office (NIRO), which, as well as acting as the board’s secretariat, gained a broader role in providing independent, technical advice on nuclear matters to BEIS.

The Nuclear Innovation Programme, which takes into consideration the NIRAB recommendations, focussed on closing gaps in the current nuclear R&D landscape; in particular, those gaps associated with new reactor systems which, in the absence of action, would prevent the UK realizing the economic and industrial potential in low carbon nuclear energy. In 2015, the Government committed to investing in an ambitious nuclear research and development programme. This funding forms part of the Government’s wider commitment to increase the UK’s clean energy innovation spend, such that by 2021 it will have doubled to over Ł400 million per year. As part of this commitment, over Ł20 million was provided to support innovation in the civil nuclear sector from 2016 to 2018, building on the recommendations set out by NIRAB.

The UK is currently a member of the EU, the OECD/NEA and the IAEA as well as other bilateral and multilateral organizations. The UK Government supports EU programmes in the field of nuclear safety, nuclear waste management and fusion and participates in many OECD/NEA and IAEA projects. The UK is committed to continue collaborating with the EU on nuclear R&D. The Scottish Government and its agencies are also committed to working with bilateral and multilateral organizations in relation to its decommissioning, research and resilience responsibilities. In 2018, the Government announced that the UK would be rejoining the Generation IV Forum on Advanced Reactors.

The BEIS Industrial Strategy, published in 2017, outlined the importance of the nuclear sector in driving growth and productivity across the UK. On 28 June, the Nuclear Sector Deal was published; it includes a package of measures to support the sector as the UK develops low carbon power and continues to clean up its nuclear legacy. The deal is about the Government and industry working in partnership to drive competitiveness across the nuclear sector. These initial actions will be used as a platform for future collaboration and investment in the nuclear sector.

As part of the deal, the Government is setting out a new framework to support the development and deployment of SMRs and the innovative technologies that support them. This framework is designed to encourage the industry to bring technically and commercially viable advanced nuclear technologies to market.

The Office for Nuclear Regulation (ONR) was established as a statutory corporation in April 2014 by the Energy Act 2013. ONR was previously part of the Health and Safety Executive but is now a specialist independent regulator for nuclear sites and transportation. ONR brings together the safety and security functions of HSE’s Nuclear Directorate, the Office of Civil Nuclear Security and the British Safeguards Office. The ONR is also responsible for the regulation of transport of radioactive materials by road, rail and inland waterways, which were previously dealt with by the Department for Transport’s Radioactive Materials Transport Division (now part of the ONR), except in Northern Ireland, where the Northern Ireland Environment Agency is the competent authority for road transport of radioactive materials. The Chief Nuclear Inspector has the power to issue, add conditions to and revoke nuclear site licences.

Regulatory oversight for radioactive substances rests with the environment agencies: the Environment Agency in England, Natural Resources Wales, the Scottish Environment Protection Agency and the Northern Ireland Environment Agency. The environment agencies implement the regulatory framework set out in the Environmental Permitting (England and Wales) Regulations 2016 (EPR16),⁽²⁶⁾ and the Radioactive Substances Act 1993 (RSA 93) in Northern Ireland⁽²⁷⁾. In Scotland, the requirements of RSA 93 will be incorporated into a new integrated authorization framework with new regulations coming into force later in 2018. The environment agencies oversee radioactive waste disposal from Britain’s nuclear sites, including site permits. They also regulate the storage and use of radioactive substances for non-nuclear users of radioactive materials such as hospitals and universities in conjunction with the Health and Safety Executive, while the ONR oversees the storage and use of radioactive substances at licensed nuclear sites. ONR and the environment agencies cooperate in fulfilling their respective missions.

The UK has updated its Justification Regulations⁽²⁸⁾, which ensure that each new class or type of practice utilizing ionizing radiation is ‘justified’ in advanced of being first adopted or approved. For these purposes, ‘justified’ means that the individual or societal benefit resulting from the class or type of practice outweighs the health detriment it may cause.

The safety of British nuclear installations, and the protection of employees and the public from the potential hazards caused by them, is governed principally by provisions in the Nuclear Installations Act 1965,⁽²⁹⁾ the Health and Safety at Work etc. Act 1974⁽³⁰⁾ and regulations such as the Ionising Radiations Regulations 2017⁽³¹⁾ and the Radiation (Emergency Preparedness and Public Information) Regulations 2001⁽³²⁾. No site may be used for the construction or operation of a civil nuclear installation unless appropriate approval or planning permission has been given. The ONR is responsible for the issuing of nuclear site licences and the imposition of conditions on those licences.

The ONR will not grant a nuclear site licence unless satisfied that a prospective operator has the capacity to meet all their stringent safety requirements from design through decommissioning, in adherence to the licence conditions attached to the site licence. To demonstrate to the ONR that safety will be properly controlled at all stages of the ‘lifecycle of plant’ on licensed sites, the operator is required to produce a comprehensive written ‘safety case’ for each plant. The safety case must be revised and updated throughout the plant’s operation, to take account of any changes in its operating conditions, and a new safety case be similarly established and maintained for decommissioning.

Ultimate responsibility for the safety of a nuclear installation is legally the responsibility of the operating entity, which must execute all licence requirements to the ONR’s satisfaction. The principle is the same whether the operating company is in the public or private sector. The ONR carefully monitors the performance of nuclear installations against exacting standards and conditions. Should there be any doubt about a licensee’s continued ability to meet its obligations, the ONR has extensive powers. They can, for example, include additional licence conditions at any time, direct the cessation of plant operation and ultimately direct that it be shut down altogether. An operating company may surrender a licence (or it may be revoked by the ONR), but still retain responsibility for safety of the site until either a new licence for the site is issued or the ONR is satisfied that there ceases to be a danger from ionizing radiation from the site.

The environment agencies regulate the disposal of radioactive waste in respect of nuclear licensed sites. There is close liaison between ONR and the environment agencies under the terms of memoranda of understanding, which set out the lead roles of the organizations and requirements for liaison and consultation.

The Nuclear Industries Security Regulations 2003,⁽³³⁾ provides a single, clarified and updated legislative basis for security regulation of those holding nuclear material and sensitive nuclear information, and introduced direct regulation of those transporting nuclear material.

3.2. NATIONAL LAWS AND REGULATIONS IN NUCLEAR POWER

Nuclear Installations

• Atomic Energy Act 1946;

• Atomic Energy Act 1989;

• Atomic Energy (Miscellaneous Provisions) Act 1981;

• Atomic Energy Authority Act 1954;

• Atomic Energy Act Authority Act 1959;

• Atomic Energy Authority Act 1971;

• Atomic Energy Authority Act 1986;

• Atomic Energy Authority Act 1995;

• Energy Act 1983;

• Energy Act 2004;

• Energy Act 2008;

• Energy Act 2013;

• Health and Safety at Work etc Act 1974;

• Management of Health and Safety at Work Regulations 1999;

• Ionizing Radiations Regulations 2017;

• Nuclear Installations Act 1965;

• Nuclear Installations Act 1969;

• Nuclear Industry (Finance) Act 1977;

• Utilities Act 2000;

• Nuclear Installations Act 1965 etc. (Repeals and Modifications) Regulations 1974;

• Nuclear Installations Act 1965 (Repeal and Modifications) Regulations 1990;

• Nuclear Installations (Dangerous Occurrences) Regulations 1965;

• Nuclear Installations (Insurance Certificate) Regulations 2017;

• Nuclear Installations Regulations 1971;

• Nuclear Installations (Excepted Matter) Regulations 2017;

• Nuclear Installations (Prescribed Sites and Transport) Regulations 2018;

• Radiation (Emergency Preparedness and Public Information) Regulations 2001;

• Town and Country Planning Act 1990;

• Planning (Hazardous Substances) Regulations 2015;

• Town and Country Planning (Scotland) Act 1997;

• The Planning etc (Scotland) Act 2006;

• The Planning Act 2008.

Environmental Protection

• Environmental Protection Act 1990;

• Radioactive Substances Act 1993 (in force in Northern Ireland and Scotland);

• Environment Act 1995;

• Waste and Contaminated Land (Northern Ireland) Order 1997;

• Control of Pollution (Radioactive Waste) Regulations 1976;

• Environmental Assessment of Plans and Programmes Regulations 2004;

• Conservation of Habitats and Species Regulations 2017;

• Infrastructure Planning (Environmental Impact Assessment) Regulations 2017;

• Environmental Permitting (England and Wales) Regulations 2016 (Schedule 23);

• Ionizing Radiation (Basic Safety Standards) (Miscellaneous Provisions) Regulations 2018;

• Justification of Practices Involving Ionizing Radiation Regulations 2004;

• Nuclear Reactors (Environmental Impact Assessment for Decommissioning) Regulations 1999;

• Radioactive Contaminated Land (Enabling Powers) (England) Regulations 2005;

• Radioactive Contaminated Land (Modification of Enactments) (England) Regulations 2006;

• Radioactive Contaminated Land Regulations (Northern Ireland) 2006, as amended;

• The High-activity Sealed Radioactive Sources and Orphan Sources Regulations 2005;

• Radioactive Substances (Basic Safety Standards) (Scotland) Regulations 2000;

• Contaminated Land (Scotland) Regulations 2000;

• Radioactive Contaminated Land (Scotland) Regulations 2007;

• Radioactive Contaminated Land (Scotland) (Amendment) Regulations 2007;

• Radioactive Contaminated Land (Scotland) Amendment Regulations 2009;

• Radioactive Contaminated Land (Scotland) (Amendment) Regulations 2010.

Security

• Anti-Terrorism, Crime and Security Act 2001;

• Nuclear Industries Security Regulations 2003;

• Nuclear Installations (Application of Security Provisions) Order 1993;

• Nuclear Material (Offences) Act 1983;

• Nuclear Security (Secretary of State Security Directions) Regulations 2018.

Safeguards

• Nuclear Safeguards Act 2000;

• Nuclear Safeguards (Notification) Regulations 2004;

• Nuclear Safeguards Act 2018;

• Nuclear Safeguards and Electricity (Finance) Act 1978.

Transport

• Radioactive Material (Road Transport) Act 1991;

• Transfrontier Shipment of Radioactive Waste and Spent Fuel Regulations 2008;

• Carriage of Dangerous Goods and Use of Transportable Pressure Equipment Regulations 2009.

Defence

• Atomic Weapons Establishment Act 1991.

General

• Electricity Act 1989.