Expert Finance Working Group on Small Reactors
The Expert Finance Working Group on Small Reactors ('the Group') was set up to advise on how small nuclear reactor projects could raise investment in the UK.
Market Framework for Financing Small Nuclear
Richard Harrington announced, as part of his speech to the Nuclear Industries Association Conference, the creation of an Expert Finance Working Group on Small Reactors (‘the Group’) to advise on how small nuclear reactor projects could raise investment in the UK.
The Group was established in January 2018 and disbanded in June on completion of its work. The Group Chair formally presented its final report to Richard Harrington on 18 July 2018:
Market Framework for Financing Small Nuclear
The Chair and Membership
Fiona Reilly chaired the Group. She is currently an Executive Partner at Atlantic SuperConnection (a Disruptive Capital group company) and a Director of the Nuclear Industry Association.
The Group’s membership included representatives from corporate finance, academia, the investor community and the supply chain.
Its members were:
- Amjad Ghori (Ex Credit-Agricole)
- Dougald Middleton (EY)
- Giorgio Locatelli (University of Leeds)
- Greg Pearce (Commonwealth Bank of Australia)
- Larry Henry (KBR)
- Michael Redican (MAR Consult)
- Richard Abadie (PwC)
Government members:
- Craig Lester (BEIS)
- Joshua Buckland (HMT)
- Helen Lister / David Clayton (IPA)
- Andrew Howarth (NIRO)
The Secretariat was provided by BEIS and the Nuclear Innovation & Research Office (NIRO).
Terms of Reference
The Group was set up to advise government on the potential for small nuclear reactor projects to raise private investment in the UK that could enable their future commercial deployment.
The characteristics and mechanisms (i.e. factory build, modular construction, reduced lead times and claimed low capital costs) for building nuclear power stations using smaller scale reactor units suggest that there are opportunities to finance these types of nuclear power stations differently to large scale nuclear, with the potential to realise reductions in the Cost of Capital (CoC).
If achievable, reduced and/or more affordable financing costs could allow for competitive, private sector-led small reactor power stations to be brought to market. The goal of the Expert Group is to test this hypothesis with a view to informing policy development.
Process and timings
The Group met 7 times between January and May 2018. It collated information from technology developers and consortia through an open Request for Information process and held oral presentations throughout March and April in London. The Group developed its recommendations and report in May and June and was disbanded on conclusion of its work.