Nuclear domain
Why is the nuclear capacity cliff a problem?
Nuclear provides around 15 per cent of GB electricity from a fleet of ageing reactors, most of which will close by 2030. Hinkley Point C is under construction and Sizewell C has been approved, but the gap between retirements and replacement is real and growing. Small modular reactors could change the long-run picture, but they are still years from deployment.
What remains of the nuclear fleet?
Britain built the world's first commercial nuclear power station (Calder Hall, 1956) and once had 26 operating reactors. Five stations remain operational, all operated by EDF Energy.
By 2029-2030, only Sizewell B (1.2 GW) will be operating. Lowest nuclear capacity since the 1960s. Hinkley Point C is expected to begin generating around 2030.
What AGR reactors are and why they are closing
Advanced Gas-Cooled Reactors (AGRs) are a uniquely British design using carbon dioxide gas as a coolant and graphite as a moderator. The graphite moderator blocks degrade over decades of neutron bombardment, developing cracks that eventually limit safe operation. When inspections show cracks have progressed beyond safety case limits, the station must close.
When does each station close?
The AGR fleet is closing in rapid succession. Each closure removes approximately 1 GW of reliable, low-carbon baseload capacity. The diagram below shows the capacity gap between retirements and new build.
What large nuclear projects are in the pipeline?
Two large EPR projects are the centrepiece of the UK's nuclear replacement strategy, using the same reactor design but different funding models.
Hinkley Point C
Two EPR reactors, 3.2 GW total. Under construction in Somerset. Strike price of 92.50 pounds/MWh (2012 prices). Cost risen from 18 billion to over 35 billion. First unit expected around 2030.
Sizewell C
Replica of HPC, 3.2 GW. Approved 2022 with Regulated Asset Base funding. UK government has 50 per cent equity stake through Great British Nuclear.
Why the RAB model should be cheaper than HPC's CfD
The RAB model allows construction costs to be passed through to consumer bills during construction, reducing the developer's financing cost. Because nuclear projects are capital-intensive with long construction periods, financing cost is a significant portion of total cost. RAB reduces the risk premium, which should translate to lower electricity cost. The trade-off is that consumers start paying before the station generates any power.
Can small modular reactors change the picture?
SMRs are factory-manufactured reactors with capacity up to 470 MW per unit. Standardised, modular construction should reduce costs and construction times. The UK government launched the SMR competition through Great British Nuclear in 2023.
Rolls-Royce SMR
470 MW pressurised water reactor. Modular construction with factory-built components. Target cost 1.8 billion per unit with series build.
GE Hitachi BWRX-300
300 MW boiling water reactor. Simplified safety systems. Under construction in Ontario, Canada.
Holtec SMR-160
160 MW pressurised water reactor with passive safety. Underground reactor design. Targeting existing sites.
Advanced Modular Reactors
Generation IV designs using alternative coolants. UK allocated 385 million for AMR demonstration. Likely post-2035.
Why fleet ordering matters more than single-unit cost
The economic case for SMRs depends on building enough units to amortise the factory investment. A single SMR will be more expensive per MW than a large reactor. The cost advantage materialises with a fleet order of 10-15 units. South Korea's APR-1400 fleet demonstrates that repeated construction of identical designs is the proven route to cost reduction.
Methodology and sources
Last reviewed: 17 March 2026
Content sourced from the React page component at commit e19c4d6. Operating fleet data from EDF Energy and ONR assessments. HPC cost from EDF project updates. Nuclear generation share from DESNZ DUKES Table 5.1.
| Source | Rolls-Royce SMR selected - SMR programme and delivery context. |
| Source | Sizewell C final investment decision - Large new-build commitment. |
| Source | Office for Nuclear Regulation - Regulatory and safety context. |
| Source | Civil Nuclear Roadmap to 2050 - Strategic framework and targets. |
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