Investment in nuclear energy

The UK’s renewed commitment to nuclear power is creating growth opportunities across investment, development, manufacturing and the wider supply chain.

In June 2026 Rolls-Royce SMR was selected to deliver three small modular reactors (SMRs) for a state backed nuclear power project in Sweden. It’s a significant success for British manufacturing and engineering expertise on the global stage. The project should create significant opportunities across the UK supply chain. It also demonstrates the growing international demand for SMR technology and highlights the scale of the opportunity presented by the much heralded “golden age” of nuclear energy. This deal follows on from Rolls-Royce’s contract with Great British Energy-Nuclear, signed earlier this year, to enable delivery of the UK’s first SMRs at Wylfa on Anglesey. Rolls-Royce have also been selected as the preferred partner of Czech utility CEZ Group to deliver 3GW of low carbon nuclear capacity across the Czech Republic.

Nuclear as a pillar of growth

The UK government is pursuing a renewed and expanded nuclear programme as a core pillar of energy security, net zero delivery and industrial strategy. Rolls-Royce’s SMR deal in Sweden is a good example of the investment, manufacturing and development opportunities that the government hopes will flow as a result.

To help investors, manufacturers, developers and suppliers contextualise the potential for growth, in this article we provide an overview of the UK’s nuclear horizon. In particular, we explain the government’s commitment to speed up the development of nuclear power, through strategic policy, regulatory and planning reform.

Strategic policy context

Civil Nuclear Roadmap to 2050

The UK’s key strategic overview comes from the 2024 Civil Nuclear Roadmap to 2050. This was published under the previous Conservative government and reconfirmed the objective of delivering up to 24 GW of nuclear capacity by 2050. Although it is unclear whether the Labour government will formally adopt that objective, it is clear from the 10 year Infrastructure Strategy that nuclear energy remains a key pillar of the Labour government’s energy plans. This includes: New large-scale nuclear power stations (such as supporting Sizewell C to financial close in 2025)

Small Modular Reactors (SMRs) (continuing the previous government’s programme, with the first SMRs now announced for the site owned by Great British Energy-Nuclear at Wylfa and a further site that it owns at Oldbury under evaluation)

Advanced Modular Reactors (AMRs – factory fabricated next generation reactors that use novel fuels and coolants) and Micro Modular Reactors (MMRs – ultra-small factory fabricated nuclear fission systems, typically sub 30MW and designed for transportability and long-duration operation without refuelling, enabling reliable low carbon power for remote, niche or off-grid applications)

And, in the longer term, fusion energy.

Nuclear is seen as critical to decarbonisation, energy security and industrial resilience.

Strategic spatial energy planning

The National Energy System Operator (NESO) has been commissioned to deliver the first Strategic Spatial Energy Plan (SSEP). Publication of this has been delayed and it is currently expected to be delivered in Autumn 2027. It will assess optimal locations and scale for electricity generation and storage, including large-scale nuclear and Small Modular Reactors (but not Advanced Modular Reactors in its initial iteration), balancing competing land-use interests such as agriculture and biodiversity. This will also be informed by the views of Great British Energy – Nuclear, the government owned body driving the delivery, enablement and expansion of new nuclear infrastructure across the UK. Consideration of any potential projects would need to be undertaken in the context of the SSEP.

Advanced Nuclear Framework and Pipeline

Published in February 2026, the Advanced Nuclear Framework is designed to support the development, commercialisation and deployment of private innovative nuclear projects within the UK energy system.

Central to this is the introduction of the UK Advanced Nuclear Pipeline, a government-managed process – open to applications now and on a continuous basis – designed to:

• Assess project credibility
• De-risk early-stage development
• Facilitate access to private finance and potential government support.

Eligibility criteria have been set, so that the government can focus bandwidth on more mature projects that have a higher likelihood of earlier deployment. Eligible projects must (among other criteria):

• Be land-based, non-mobile fission technologies
• Be SMRs, AMRs or MMRs fuelled by Uranium-235 enriched to up to 20%
• Be located on mainland sites in England or Wales
• Be seeking to commence construction within 10 years of joining the Pipeline.

Under the Pipeline process, developers submit proposals to the Department for Energy Security and Net Zero (“DESNZ”) and Great British Energy – Nuclear (“GBE-N”), including a summary of the project and a declaration of eligibility and setting out details of the project’s status and readiness across five core areas:

1. Technology and supply chain
2. Developer capability
3. Finance and funding
4. Siting
5. Operations/end‑user

Projects then undergo preliminary checks before a three stage Project Readiness Assessment Process. The final stage and acceptance to the Pipeline is subject to ministerial approval. Pipeline membership confers a Statement of Limited, In-Principle Endorsement, signalling that the UK government views the project as credible and potentially viable. However, it’s important to note that Pipeline membership doesn’t guarantee deployment; confers no automatic financial support or regulatory outcome; and creates no legitimate expectation of ministerial or regulatory decisions. Seeking membership of the Pipeline is a voluntary process, but in reality it is  likely to become a prerequisite for discussions to access revenue support such as Contracts for Difference, other government support, National Wealth Fund investment and private finance.

Part two of the Framework covers the wider enabling context, including the SSEP, changes to the planning system and grid reform, moving to the “first ready and needed, first connected” rule.

Reform of nuclear regulation and planning

Nuclear Regulatory Taskforce

In March 2026, the government published its response to the Nuclear Regulatory Taskforce recommendations. The Taskforce (also known as the “Fingleton Review”) had published its findings in November 2025, and noted that the UK had become the most expensive place in the world to build nuclear projects and that the current regulatory and delivery model is failing. The government agrees that the existing framework is fragmented, duplicative and overly risk-averse. It has committed that all Taskforce recommendations are to be implemented before the end of 2027, subject to legislative timelines. The May 2026 King’s Speech confirmed that the Government will introduce a Nuclear Regulation Bill in the next parliamentary session. This will significantly modernise the UK’s regulatory regime for nuclear.

Key reform themes include:

• Improving proportionality in Environmental Impact Assessment and Habitats Regulations Assessment, so that it is quicker and more strategic.
• Introduction of Environmental Outcomes Reports (from December 2027), to seek to reduce the inefficiencies in the EIA regime.
• Seeking to deliver a streamlined mandatory Biodiversity Net Gain framework for NSIPs (see below).
• Building on existing reforms to judicial review, to limit legal challenges to NSIPs to a ‘single bite of the cherry’.

Further key recommendations relating to the UK planning regime include:

• (14) Modular Low-Carbon Acceleration Zones – strategic environmental assessment upfront for multi-reactor sites, removing project-by-project Environmental Impact Assessments/Habitats Regulations Assessments and enabling fleet deployment.
• (24) Strengthened policy presumption that nuclear is a Critical National Priority (CNP) in EN-7 (the relevant National Policy Statement (NPS) for Nuclear Energy Generation) and updating the NPPF to contain the same CNP presumption.
• (27) Amend the Planning Act 2008 to require the SoS to issue “minded to” letters, signalling intention to approve. Delays to this requirement (if brought into law) should only be “exceptional”.
• (28) Reinstate the Model Provisions, including, for example: a provision ensuring that overlapping consents don’t lead to enforcement action being taken; shorter time periods; enablement of CPO rights in connection with utility works.
• (32) For large nuclear projects (over 50 MWe), developers require a DCO, but the current system treats each project as unique, causing duplication and delays. So EN-7 is to be amended to prioritise fleet deployment and standardisation, which is vital for reducing costs and accelerating SMR delivery. EN-7 will also state that adverse impacts from a fleet approach are not grounds for refusal except in exceptional cases.
• (33) A new pathway encouraging siting flexibility for semi-urban sites: either comply with Semi-Urban Population Density (SUPDC) (SUPDC is a siting test that measures whether a nuclear facility can be located at a proposed site based on population density and proximity. Its flaws include treating micro-reactors and large reactors identically, and proven sites such as Heysham which already provide grid access, cooling water and a skilled workforce are excluded or face development complexities) or use a 28-day fast-track approval by the Secretary of State. And, SUPDC methodology to be revised to reflect modern reactor safety.
• (34) Emergency planning reform to set technology-specific default Outline Planning Zones (OPZs) for SMRs and allow smaller zones if justified. Introduce fixed timelines and an appeals process.
• (35) Streamline regulatory justification to remove duplicative process that currently delays SMRs. Introduction of legislation deeming the grant of a planning permission, the completion of Stage 2 of the GDA, or the grant of a nuclear site licence for a nuclear installation to be a justified practice. This removes a costly and duplicative step (which is not seen in most other ‘nuclear’ nations), cutting up to 2 years from project timelines and saving around £750,000 per application.

The UK’s nuclear planning regulatory regime is currently tailored to traditional large-scale reactors, making it difficult for technologies like SMRs and AMRs to gain regulatory approval. A lack of a fleet approach is also said to be the cause of inefficiency. Recommendations (32)-(35) (above) are intended to facilitate SMR development and delivery. SMRs represent a crucial component of the UK’s energy strategy and will be key to the facilitation of other high-energy dependent development, such as data centres.

Planning reform and infrastructure delivery

The Planning and Infrastructure Act 2025, which entered into law in December 2025, should also be a key catalyst for change via key reforms such as:

• NPSs to be updated every 5 years, with a new fast-track process for interim changes
• Powers to create mechanisms to reallocate released grid capacity and reserve future grid capacity for strategically important demand projects
• Removal of the statutory pre-application consultation requirement, to be replaced with a flexible non-statutory framework, which could materially cut DCO timelines.

These reforms signal a clear intent to streamline nuclear planning.

Also on the horizon is EN-8, a new National Policy Statement for Fusion. For the time being, fusion technology is still experimental in terms of energy delivery, and EN-8 currently remains at the pre‑draft stage. In the meantime, it’s clear the UK is positioning itself as a global leader in fusion. This is supported by:

• £410 million for the STEP programme, targeting a fusion power plant by 2040
• The £40.5 million UK–US LEAPS project with Tokamak Energy
• Launch of Starmaker One, a public–private fusion investment fund
• Fusion-specific system planning and strategic energy planning work by NESO and bespoke regulation under the Energy Act 2023
• And, publication in March and April 2026 respectively of the UK government’s fusion strategy 2026 and UK Fusion Energy Ltd’s (UKFE) new Fusion Strategy.

International cooperation

The Atlantic Partnership for Advanced Nuclear Energy represents a major step in regulatory and commercial alignment between the UK and US. Key elements include: mutual recognition and streamlining of regulatory approvals; enhanced cooperation between transatlantic nuclear and environmental regulators; and target reduction in licensing times to around 24 months. Announced commercial collaborations include SMRs, AMRs, microreactors, fuel cycle investment and data centre power projects, signalling strong transatlantic momentum.

Other international collaboration includes:

In 2025, the UK formally presented to Parliament a new Framework Agreement for International Collaboration on Research and Development of Generation IV Nuclear Energy Systems, continuing its longstanding role in the Generation IV International Forum. The framework supports collaborative R&D on advanced reactor technologies, fuels and safety systems with multiple international partners including France, Japan, Canada and others.

Also last year, the UK and Japan deepened civil nuclear cooperation through several other channels, including:

• A UK–Japan Civil Nuclear Research Programme supporting joint R&D projects across the nuclear lifecycle.
• Collaboration between UK Atomic Energy Authority (UKAEA) and Japanese institutions on robotics for nuclear environments, critical for decommissioning and advanced reactors.

The UK and Canada advanced collaboration across:

• SMRs
• Supply‑chain development
• Nuclear workforce and skills, particularly focusing on practical cross‑border collaboration on fission and fusion, not defence.

And, of course, June 2026 saw the announcement of the Videberg Kraft/Rolls-Royce SMR deal in Sweden. It should create significant opportunities across the UK supply chain, and may prompt similar projects (with the investment, manufacturing and development opportunities that they would entail) in future – both within the UK and internationally.

A related issue: BNG for NSIPs

A related issue – on the nearer horizon – is the fact the government has now published its response to its 2025 consultation on the implementation of mandatory Biodiversity Net Gain (BNG) for Nationally Significant Infrastructure Projects (NSIPs).

Nuclear power projects in England and Wales with a generating capacity over 50MW (or 350MW in Wales) are classified as NSIPs.

BNG is now scheduled to apply to NSIP applications from 2 November 2026. From that date, NSIPs will be required to provide a biodiversity gain statement, which will play a central role in both the examination of applications and the Secretary of State’s decision‑making. The government has produced guidance on what to include in BNG baselines, which the government considers delivers on the Nuclear Regulatory Taskforce’s recommendation to introduce a streamlined framework for NSIPs. For more information on BNG for NSIPs, see our recent briefing.

How we can help you

Walker Morris combines specialist Energy & Infrastructure expertise with deep private equity experience and is closely monitoring developments in the nuclear market. We would be delighted to discuss the implications for investment strategy, acquisitions and portfolio company growth.