Panoramic: Automotive and Mobility 2025
The UK Government's final draft of the National Policy Statement for nuclear energy generation (“EN-7”) introduces important changes to UK nuclear energy policy. Whilst further work is still required to give the nuclear industry the right balance of certainty and agility, EN-7, provides increased clarity and flexibility and affirms the Government's support for next-generation nuclear technologies.
EN-7 sets out the updated framework for planning, assessing, and delivering new nationally significant nuclear energy projects in England and Wales. It provides the basis for assessing applications for Development Consent Orders (“DCOs”) for such projects and introduces significant changes designed to encourage the development of new nuclear infrastructure in the UK.
With four of the UK’s five largest nuclear power stations scheduled to close within the next five years and new nuclear technologies needed to fill the gap as a critical part of the UK’s energy mix going forwards, EN-7 is an important next step on the path towards ensuring that the UK market supports nuclear energy in all its forms.
1. Inclusion of SMRs and AMRs
2. Criteria Based Siting
3. Option for phased deployment
4. Extended application
Previous National Policy Statements often contained ambiguous wording that left infrastructure projects vulnerable to judicial review. By setting out a clear long-term framework, EN-7 reduces this uncertainty. Its emphasis on innovation and technological advancements opens the door for new entrants in nuclear technology. The new flexible criteria-based approach to siting fosters an open market, where developers can proceed surely, as long as they meet siting criteria and licensing requirements.
The new criteria based siting approach is particularly advantageous for the development of AMRs. Unlike traditional gigawatt scale plants and SMRs, AMRs are not generally constrained by the need for proximity to large bodies of water. AMRs are also able to deliver high quality (and low carbon) industrial heat for applications such as steelmaking, hydrogen production, and desalination. To maximise this capability, AMRs must be located near industrial clusters. EN-7’s flexible siting criteria could pave the way for AMR deployment at smaller sites closer to centres of high energy demand, as a means of generating low-carbon industrial heat although, as we explain below, the criteria to be applied do not give as much scope for this as industry would have liked.
Although reactions to the draft EN-7 have been largely positive, industry and policymakers have also raised some concerns. The Energy Security and Net Zero (“ESNZ”) Committee, which scrutinises government energy policy, recommended several amendments to EN-7 following a consultation with stakeholders, raising concerns that the interaction between EN-7 and other regulatory regimes such as Nuclear Site Licensing and Environmental Permitting is insufficiently clear, risking regulatory duplication, added cost, and delay. In response, the Government intends to publish supplementary guidance on EN-7’s interaction with related regulatory frameworks.
In addition, there have been questions raised around the continued use of ‘Semi-Urban Population Density’ as a siting criterion, focused particularly on restrictions this would place on the siting of AMRs and SMRs near industrial clusters and hindering expansion at existing sites like Heysham and Hartlepool. While the Government has maintained its intention to retain the population density criterion for the time being, it has confirmed that EN-7 will undergo review at least every five years to ensure it remains relevant and effective in light of new technologies.
Although far from perfect, EN-7 represents a significant step forward in the UK’s nuclear planning framework, providing greater clarity, flexibility, and elements of support for next generation technologies. While some industry concerns persist, the Government’s commitment to periodic review creates scope for further reform and adaptation. The wider nuclear policy landscape is also continuously evolving, as highlighted by the Nuclear Regulatory Taskforce’s recent call for a radical reset of the regulatory system. At the same time, the UK’s Autumn 2025 Budget has reinforced the Government’s stance that ‘nuclear power is green power’, making nuclear power projects eligible for funding through green gilts and Green Savings Bonds, in line with similar trends in the EU. Taken together, these developments signal a dynamic period ahead for UK nuclear policy, creating new opportunities (but also potential uncertainty) for industry and investors alike.
Authored by Antonia Seyfarth and Malcom Parry.