Britain has announced a major £16.7 billion ($22.5 billion) investment in nuclear energy as part of its broader strategy to transition away from fossil fuels and decarbonize the national power grid by 2030.
Chancellor of the Exchequer Rachel Reeves confirmed the funding on Tuesday, highlighting a £14.2 billion commitment to the development of the new Sizewell C nuclear power plant in Suffolk, England. The investment marks a significant step in the UK’s push for clean energy infrastructure.
An additional £2.5 billion will be directed toward the development of small modular reactors (SMRs), with Rolls-Royce named as the preferred bidder for the programme. The government hopes SMRs will offer a faster, more cost-effective alternative to traditional large-scale nuclear facilities.
“The UK is back where it belongs, taking the lead in the technologies of tomorrow with Rolls-Royce SMR as the preferred partner for this journey,” Reeves said.
The SMR initiative is expected to create up to 3,000 skilled jobs and generate enough electricity to power approximately three million homes. A first site for the reactors is expected to be selected later this year by state-owned Great British Energy Nuclear.
The announcement comes on the heels of formal government backing for Sizewell C. Energy Secretary Ed Miliband called the new investments essential for achieving a “golden age of clean energy abundance.”
Trade unions welcomed the move, with the Treasury stating that the Sizewell C project will support around 10,000 jobs, including 1,500 apprenticeships.
However, the decision has drawn criticism from environmental campaigners. The head of a local opposition group questioned the financial prudence of the commitment, noting that the total cost of the project remains unclear.
Nuclear energy is increasingly viewed as a cornerstone of the UK’s clean energy future. The last completed nuclear plant in Britain was Sizewell B, which began operations in 1987. Hinkley Point C, currently under construction in Somerset, is expected to supply power to six million homes once operational though its launch may be delayed until 2031.
