A competition is to be held to boost the possibilities of small-scale nuclear power use in the UK.
Chancellor George Osborne said at today’s spending review that details of a contest to identify the best value small modular reactor for the UK would be set out early next year.
He said the competition would pave the way to building such a reactor in the UK next decade.
Small modular reactor developer NuScale Power last month said it wanted to establish its reactors, which are less than 3m in diameter, in this country as the global market for the technology grows.
Documents released alongside the spending review added that the government would commit up to 10% of shale gas tax revenues to a Shale Wealth Fund, which could deliver up to £1bn of investment in local communities hosting shale gas developments.
“We’re supporting the creation of the shale gas industry by ensuring that communities benefit from a Shale Wealth Fund, which could be worth up to £1bn,” said Osborne.
Ministers will also give the Oil and Gas Authority additional powers to scrutinise companies’ offshore decommissioning plans and take action to ensure they represent value for money.
Osborne added that support for low-carbon electricity and renewables would more than double during this parliament.
The Department of Energy and Climate Change’s day-to-day resource budget will fall by 22% over that time.