Energy related measures in the UK spring budget (presented by the chancellor of the exchequer, Jeremy Hunt, on 6 March) reflected an emphasis on nuclear power. The chancellor reiterated the government’s ambitions to have nuclear energy supply a quarter of the UK’s electricity by 2050 with ‘nuclear’ being the most frequently cited technology in the budget, as noted by solicitors FREETHS in its commentary on key takeaways. The chancellor highlighted the next stage of Great British Nuclear’s small modular reactor competition and confirmed that the government has reached a £160 million agreement with Hitachi to buy its Wylfa and Oldbury sites.
The budget also included additional funding for the Green Industries Growth Accelerator (GIGA). GIGA is a fund announced in the UK government’s 2023 autumn statement and is aimed at supporting the expansion of clean-energy supply chains. The chancellor announced a £120 million increase to the GIGA budget, FREETHS notes. Of the over £1 billion of total funding now available, the budget delineates sector funding splits with: up to £390 million of funding expected to go to supply chains for offshore wind and electricity networks; and up to £390 million expected to go to supply chains for carbon capture utilisation and storage (CCUS) and hydrogen. This sits alongside the £300 million already allocated to nuclear fuels for the high assay low enriched uranium (HALEU) programme, says FREETHS.
Previous announcements on planning and grid connection reform were also cited in the budget, with additional mentions of government working with ESO on ‘further interim reforms to the grid queue process by summer 2024’, potentially signalling “further measures if connection queue issues are not adequately resolved over the next few months”, suggests FREETHS.
Separately, FREETHS observes, DESNZ published its budget notice for Allocation Round 6 of the Contract for Difference scheme, announcing the largest ever budget for a single round at £1.025 billion, £800 million of which will be allocated to offshore wind. The starting date for AR6 is 27 March 2024, with a closing date for applications of 19 April 2024.
Image: CGI of former plans for a nuclear site at Wylfa Newydd in Anglesey, off the northwestern coast of Wales
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