nuclear-news

Great British Nuclear explains how it will mitigate risks to SMR programme.

13 Mar, 2025 By Tom Pashby

Great British Nuclear (GBN) has explained how it plans to overcome the key risks to the small modular reactor (SMR) programme is it running and that it plans to establish of SMR development companies (DevCos) to take the projects forward.

  The updates were shared in its inaugural 2024 Annual
report and accounts for the 2023/2024 financial year.

It is assumed that GBN will select two vendors to deliver one SMR each, but this was recently
called into question by sources speaking to the Telegraph who said the
chancellor may cut spending at GBN as part of the Spending Review which is
due on 11 June 2025. GBN chief executive officer Gwen Parry-Jones said:
“The UK’s nuclear sector has had some well-documented challenges, ones
that GBN has been set up to navigate.” She did not spell out the
challenges.

“SMRs have not yet been deployed anywhere at scale and their
first-of-a-kind (FOAK) nature presents unique considerations and complex
challenges for us to overcome.” She reassured, however, that she is
“committed to ensure that GBN is an adaptable and resilient organisation
that is flexible and evolves as conditions change, but with our eyes always
firmly fixed on the future to deliver our long-term mission and value for
the UK”.

The report lays out the “principal risks” which GBN believes
the SMR programme faces, along with “key mitigation measures”. The
risks are centred around technology maturity, the ambitious programme
timeline, resourcing, funding and financing, stakeholder alignment,
‘contractual and procurement complexity’, site readiness and cyber
threat.

On technology maturity, it said: “Due to the first of a kind
(FOAK) nature of the technology, providers may not be able to meet
strategic objectives, including timely delivery, value for money and
obtaining regulatory approval. “This may delay approval timelines, affect
project milestones or cause an SMR project to fail.” It says that the SMR
competition that it is running will assess the technologies and mitigate
this risk. However, it also reveals that it will retain the option of, in
addition to the SMR competition winners, selecting a “reserve contractor,
to provide contingency against one provider failing to meet agreed
standards”.

GBN lists four other mitigations, including stating it could
or would provide “predetermined exit points” from projects “should a
project exceed cost estimates or timelines stretch beyond acceptable
parameters”. Regarding risk relating to “funding and financing”, it
says: “GBN’s available funding may be insufficient to resource and
deliver the programme to the planned timetable, e.g. should a change arise
from any change in government policy or in its budgetary priorities.

“A reduction in funding could also be triggered by market conditions or
external events such as an external nuclear event affecting public
sentiment towards nuclear safety.

 New Civil Engineer 13th March 2025, https://www.newcivilengineer.com/latest/great-british-nuclear-explains-how-it-will-mitigate-risks-to-smr-programme-13-03-2025/

March 15, 2025 - Posted by Christina Macpherson | politics, UK