UK is the “most expensive place in the world” to develop nuclear energy

The UK has become the “most expensive place in the world” to build nuclear power plants, according to a government study detailing the “overly complex” bureaucracy surrounding the sector.

The report, commissioned by Prime Minister Sir Keir Starmer, called for a “radical reset” of the government’s nuclear strategy to make projects safer and more efficient.

Doing so could save Britain “tens of billions” in costs and reverse the industry’s “decline” in recent years, the Nuclear Regulatory Taskforce concluded.

It comes as the UK government looks to build a new generation of nuclear plans to meet the country’s future energy needs and net zero targets.

The report found that a “fragmented” regulatory system has resulted in a lack of safety oversight across the industry, leading to “conservative and costly decisions that are not proportionate to the actual risk being managed.”

He described the industry as “almost monopolistic” and said both civilian and defense programs are prone to “major cost overruns and schedule delays.”

Nuclear plants, which generate electricity using atomic reactions to produce heat, are “essential to the UK’s future”, and the country risks missing out on a “global nuclear renaissance”.

The report says the UK has overly risk-averse policies, including “overly conservative” rules on radiation exposure levels for workers.

Among its recommendations is a “single” commission for nuclear decisions. The agency should have “unified” decision-making powers.

Task force chair John Fingleton said: “Our solutions are radical, but necessary. By simplifying regulation, we can maintain or improve safety standards while delivering nuclear capability safely, quickly and affordably.”

The government is expected to address the report’s findings later this month in the Budget.

Several major economies are reassessing their nuclear strategies and expanding their capabilities.

The number of planned and proposed nuclear plants currently in process is roughly equivalent to the number already in operation worldwide.

The UK is among 30 other countries that have signed a global commitment to triple their nuclear capacity by 2050 in a bid to reduce carbon emissions.

Britain’s existing nuclear power plants will account for around 15% of the electricity generated in 2024.

The UK has nine nuclear reactors, but they are aging and eight of them will close by 2030.

New plants are being developed, but will take several years to come online.

Hinkley Point C in Somerset is expected to begin operating in the early 2030s, while Sizewell C, which the government says will be able to power six million homes, will do so later in the decade.

The UK is also installing small nuclear power plants, which are faster to build than full-size reactors.

Beyond the UK, France plans to build at least six new reactors, while China has almost 30 under construction.

The United States completed its first new reactor in more than three decades last year, and Japan – which temporarily shut down its nuclear program after the Fukushima meltdown in 2011 – now plans to supply a fifth of its electricity by 2040.

In contrast, Germany has phased out the use of nuclear energy, prioritizing alternative renewable energy such as hydrogen.

The development of nuclear energy remains divisive, with public opinion clouded by high-profile safety incidents, including Fukushima and the 1969 Chernobyl disaster.