Rolls-Royce says its SMR plans will help slash bills as it looks to secure funding
Rolls-Royce has argued that its plans for developing small modular reactors (SMRs) in the UK could drastically reduce wholesale energy prices in the UK, as it looks to steal a march on its rivals and secure government funding for its nuclear ambitions.
The British aerospace giant is currently leading a consortium of investors in a bid to build up to 30 scaled-down reactors across the UK as the government scrambles to boost the country’s nuclear power output.
Integration of 7.5GW of nuclear power from Rolls-Royce’s SMRs would reduce wholesale prices by four per cent in 2035 and 13 per cent by 2040, according to research commissioned by Rolls-Royce and shared exclusively with City A.M.
This is based on a lower case scenario of 16 of Rolls-Royce’s SMRs being constructed, but prices could drop by as much as 28 per cent by 2040 if all 30 are built, the research said, which was conducted by Aurora Energy Research.
“By adding SMR generation, we can push new build gas out of the system and, therefore, reduce the number of hours in which the price is set by gas,” the research said. “Gas leaves consumer bills vulnerable to price volatility, so by adding publicly funded SMRs to the UK grid and removing the need for new build gas, we can stabilise electricity prices and reduce consumer bills.”
The Rolls-Royce research also argued that if all 30 of its planned SMRs was green-lit and constructed over the next decade, the government would be in line to reach its target of decarbonising the electricity grid by 2035.
Currently, Rolls-Royce is in the rat race for funding alongside rival bids from competitors which could include Newcleo and Hitachi GE.
It has already secured £210m from the government, which has dithered over whether to directly offer more investment to Rolls-Royce’s proposals.
The next stage of the competition is expected to be clarified this week at the launch of GB Nuclear, the UK’s industry vehicle for securing sites and green-lighting projects.
Rolls-Royce has shortlisted four projects for potential development – including the hotly contested Wylfa site in North Wales alongside sites at Trawsfynydd, Oldbury on Severn and Moorside in Cumbria.
The UK has not completed any new nuclear reactors since 1995 and while the power source currently generates 15 per cent of our energy needs, over 85 per cent of the existing nuclear fleet is set for closure by 2028.
