Rolls-Royce SMR has been chosen as the preferred bidder to spearhead the United Kingdom's ambitious small modular reactor (SMR) programme, marking a significant milestone in the nation's clean energy transition. This decision, announced on June 10, 2025, follows a rigorous two-year competitive process and is subject to final government approvals and contract signatures.
The UK government, through its state-owned energy company Great British Energy – Nuclear, recently rebranded as Great British Nuclear, has partnered with Rolls-Royce SMR to develop one of Europe's first fleets of SMRs. This collaboration aims to deliver a new generation of nuclear power plants that are smaller, faster to build, and more cost-effective than traditional nuclear reactors.
Energy Secretary Ed Miliband heralded the announcement as the end of a "no-nuclear status quo," declaring the dawn of a "golden age of nuclear" with the "biggest building programme in a generation." He emphasized that the project would create thousands of jobs, stimulate regional economies, and bolster the UK’s energy security.
SMRs typically produce around 300 to 470 megawatts of electricity—enough to power a city—and are constructed using modular components manufactured in factories before being transported to sites for assembly. This modular approach enables quicker construction times and scalability, making SMRs an attractive solution for expanding nuclear capacity. The government is also reforming planning rules to streamline approvals for new nuclear facilities, including SMRs, to accelerate deployment across the country.
Great British Nuclear plans to finalize contracts with Rolls-Royce SMR later this year and establish a dedicated development company to oversee the programme. The company aims to allocate a site by the end of 2025, with grid connections targeted for the mid-2030s. Potential sites under consideration include Wylfa in Anglesey and Oldbury-on-Severn in Gloucestershire.
The government has committed over £2.5 billion in funding for the SMR programme during the current Spending Review period, with expectations of billions more to follow as construction advances. This investment is part of a broader industrial strategy to revitalize Britain's industrial heartlands, create up to 3,000 skilled jobs, and deliver clean, reliable electricity to power approximately three million homes.
Alongside the SMR rollout, the UK is advancing other major nuclear projects, including the 3.2-gigawatt Sizewell C power station, which benefits from a £14.2 billion government contribution, and the ongoing Hinkley Point C station. Together, these initiatives are projected to supply more nuclear-generated electricity to the UK grid in the 2030s than in the previous fifty years combined.
Gwen Parry-Jones, CEO of Great British Energy – Nuclear, expressed pride in leading this national mission, highlighting nuclear power as the cornerstone of the UK’s energy strategy. She stated, "Together with Rolls-Royce SMR, our selected preferred bidder, and subject to government approvals and contract signature, we will deliver a programme that is technically world-class and delivers real value to the British people—through energy security, economic opportunity, and environmental leadership."
Rolls-Royce SMR’s design has advanced rapidly through the UK’s independent nuclear regulatory assessments, reportedly 18 months ahead of its nearest competitors. It is the only design to have completed the second phase of the generic design assessment, a critical regulatory milestone, which it achieved last summer. This progress underscores the company's unique nuclear capabilities and positions it as a frontrunner in the global SMR market, projected by the International Energy Agency to reach nearly £500 billion by 2050.
Rolls-Royce CEO Tufan Erginbilgic described the selection as "a very significant milestone" and a "vote of confidence" in the company’s nuclear expertise. He expressed optimism that the value of Rolls-Royce SMR will grow substantially as the venture progresses and delivers on its potential. The firm is also involved in international projects, such as a joint venture with Czech state energy company CEZ to build some of Europe’s first SMRs.
The SMR programme is expected to strengthen the domestic supply chain, with Great British Energy – Nuclear aiming for 70% of supply chain products to be British-built, a goal supported by Chancellor Rachel Reeves. She remarked, "The UK is back where it belongs, taking the lead in the technologies of tomorrow with Rolls-Royce SMR as the preferred partner for this journey. We’re backing Britain with Great British Energy – Nuclear’s ambition to ensure 70% of supply chain products are British built, delivering our Plan for Change through more jobs and putting more money in people’s pockets."
While Rolls-Royce SMR emerged as the government's preferred bidder, other SMR technologies remain active in the UK market, primarily through private sector initiatives. Holtec International, despite scaling back and delaying its plans following the government decision, continues to pursue partnerships and international opportunities, including a factory in Doncaster that could produce two SMR-300 units annually. GE Hitachi has signed agreements with several construction and engineering firms and is exploring potential sites for its BWRX-300 SMR. Westinghouse Electric Co. has been selected by Community Nuclear Power to build four AP300 SMRs in Northeast England, marking the first confirmed privately funded SMRs in the UK.
Simon Bowen, chairman of Great British Energy – Nuclear, called the selection "a defining moment for the UK’s energy and industrial future," emphasizing that the programme is about more than just energy. "It’s about revitalising British industry, creating thousands of skilled jobs, and building a platform for long-term economic growth," he said.
The UK government's strategic push to develop SMRs reflects a broader commitment to achieving net-zero emissions while enhancing energy security and economic resilience. By investing heavily in modular nuclear technology, Britain aims to position itself as a global leader in next-generation clean energy solutions, creating a legacy of sustainable power and industrial innovation for decades to come.
