Nuclear: Small Modular Reactors

Earl Russell Excerpts

Monday 19th May 2025 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

My Lords, I congratulate the noble Lord on living in Suffolk. Only a few weeks ago I had a meeting with Suffolk local authority leaders to discuss these very matters. He is right in the sense that, as I have already said, we are moving rapidly towards final investment decision on Sizewell C. I very much hope we will be able to get that over the line. We have committed £2.7 billion of funding through the Sizewell C devex subsidy scheme to support the project’s development during the current financial year. It consolidates the Government’s position as the majority shareholder in Sizewell C and is laying the foundations for final investment decision and, we very much hope, a 3.2-gigawatt nuclear power station that will power 6 million homes for 60 to 80 years.

[Earl Russell (LD)]

My Lords, this Government are clearly committed to making progress on SMRs, primarily to help power AI. AI will be a great consumer of power but equally has great opportunities to bring huge energy savings and efficiencies. I welcome the recently launched AI Energy Council, but are the Government doing enough to bring about the required AI energy efficiencies? I ask the Government to publish a full AI energy efficiency strategy for making the best use of AI that sets out clear targets for AI to be better than carbon-neutral before 2030.

[Lord Hunt of Kings Heath (Lab)]

My Lords, we are well aware that both AI and data centres will lead to a major increase in electricity demand. We are also aware of experience in the US, and interest in this country, in linking these AI data centres to nuclear development. The EN-7, the siting policy for nuclear sites, which we are debating in your Lordships’ House on Wednesday, gives us a more flexible siting policy as a result. We are well aware of the potential. We are working very hard to consider how we can encourage this development with private sector funding. I take the noble Earl’s point about the need for us to be very clear about where we are going in this area; I very much accept that.