Growing momentum in the nuclear sector: developments from 2025 and what to expect in 2026

At the beginning of 2025 we explored the UK Government's plans to revitalise the nuclear energy industry and in the summer we welcomed an investment package which granted additional capital to the Sizewell C project and pledged funds towards the development of Small Modular Reactors ("SMRs") in the UK.

Further announcements followed during the second half of 2025 which have continued to build on the growing momentum surrounding the UK's nuclear energy industry. A number of further developments are anticipated in 2026, which will work towards maintaining this positive momentum.

Sizewell C Financial Close

Likely the most significant development in H2 2025 was the Final Investment Decision (FID) for the Sizewell C project, which was formally approved by the government in July. The government took a 44.9% equity stake, becoming the largest shareholder in the project. The project is expected to move into full construction execution in 2026, which will accelerate site works and increase contract activity across the project's supply chain.

Crucially, Sizewell C is the UK’s first nuclear energy project to proceed under the Regulated Asset Base ("RAB") funding model, enabling project revenues to be recovered from consumers during the construction phase rather than solely after commissioning. In 2026, the revenue mechanisms of RAB will likely be implemented, which will reveal how effective the RAB model is in operation.

Hinkley Point C

Hinkley Point C entered the next phase of its lifecycle with the second reactor dome being successfully installed in July and major components such as steam generators being lowered into place. In January 2026, the project's second nuclear reactor was delivered to the site.

US-UK Energy Deal

In September, the governments of the UK and USA signed the Atlantic Partnership for Advanced Nuclear Energy to stimulate the inception and execution of nuclear energy projects in both jurisdictions. The deal aims to cut the time it takes for projects to acquire licenses (from around four years to two years) and to boost the reliability of supply chains (including a commitment to eliminate any dependencies on Russian nuclear material by 2028).

Rolls Royce SMRs at Wylfa and Pipeline Projects

In November, Wylfa on Anglesey was selected as the site of the UK's first planned SMR following the government's choice of Rolls Royce SMR as its preferred bidder to deliver SMRs in the UK. During "Nuclear Week in Parliament (NWiP)" in January 2026, the US nuclear services group Amentum was selected as the programme delivery partner for the Rolls Royce SMR projects, which is a clear and immediate case in point as to Anglo-American collaboration in the nuclear energy sector.

By the Autumn of 2026, Great British Energy – Nuclear is expected to have identified additional sites for future large-scale and SMR projects. Ground investigations are currently underway at a site near Oldbury, Gloucestershire for the deployment of an SMR project.

Nuclear Regulatory Review and Decommissioning

As mentioned in our first article of 2025, a Nuclear Regulatory Taskforce was established to review the regulatory framework for nuclear energy projects in the UK. In November 2025, the taskforce published its final report (Nuclear Regulatory Review 2025 - GOV.UK) which was received favourably by the government who will now look to implement the vast majority of recommendations. The government claims to be in the final stages of designating a National Policy Statement for Nuclear Energy Generation to set out a nuclear planning framework for projects beyond 2025. In 2026, we will likely see the first practical effects of the recommendations and calls for industry engagement in regards to streamlining and correcting the regulatory regime.

At the forefront of the agenda for NWiP '26 was the role that the Nuclear Decommissioning Authority (NDA) plays in the winding down of nuclear energy projects and the key role it has in ensuring that projects reach the end of their life-cycle safely, securely and sustainably. December 2025 marked the first example of the processing of plutonium into a form suitable for disposal. In January 2026, the NDA and EDF received ONR confirmation that Hinkley Point B has been defueled successfully, on time and on budget, the second AGR to achieve that milestone and a testament to the NDA's expertise and resources and to the UK's wider nuclear decommissioning supply chain. In April 2026 it is expected that Hunterston B will continue its de-commissioning journey by being transferred from EDF to the NDA, which will be the largest expansion of the work performed by the NDA since its inception in 2005.

Final thoughts

These developments go beyond injecting capital into specific projects. We now have more clear examples of nuclear energy projects materially progressing along their project timelines, pipelines for prospective nuclear energy projects domestically and with international collaboration, and tangible objectives for reforming the nuclear energy regulatory regime. We expect that these developments will continue to stimulate the wider nuclear energy industry as well as the supply-chain and connected industries.

Our full-service, multi-disciplinary team of nuclear energy lawyers advises and supports clients with achieving their aims across the full lifecycle of projects in the nuclear industry. Our specialist nuclear practice is built on the expertise and quality of our lawyers coupled with our sector knowledge, which really sets us apart. Please do get in touch if you would like to discuss how our energy law team can support your business in this sector.