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Nuclear Regulated Asset Base Model

The Department for Energy Security and Net Zero (formerly BEIS) is implementing the Regulated Asset Base (RAB) model for nuclear power station financing, which allows private developers to recover investment costs through regulated returns over the asset's lifetime. Current work includes modifying the Sizewell C RAB licence, developing industry codes, and conducting post-implementation reviews of related regulations. This is an active energy infrastructure financing initiative.

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31 Jul 2023 | Committee report linked

Given the demonstrated unwillingness of private investors to take on all of the construction risk of gigawatt scale nuclear plants through the CfD model, it is inevitable that a public-private risk sharing model should be contemplated if new gigawatt-scale plants are to be constructed. The Regulated Asset Base (RAB) model— which has been given Royal Assent in the Nuclear Energy (Financing) Act is one such. However, the model entails significant uncertainties and downsides. Chief among these i...

Given the demonstrated unwillingness of private investors to take on all of the construction risk of gigawatt scale nuclear plants through the CfD model, it is inevitable that a public-private risk sharing model should be contemplated if new gigawatt-scale plants …

▤ View document · ↗ GOV.UK
3 May 2023 | Committee report linked

The introduction of the Regulated Asset Base (RAB) model is welcomed as a better alternative to the Contracts for Difference (CfD) scheme for nuclear developments. However, financing new nuclear projects is not straightforward and there will still be challenges under the RAB model. For a development to progress at Wylfa, important issues still remain regarding financial commitment. (Paragraph 47) Nuclear energy in Wales 27

The introduction of the Regulated Asset Base (RAB) model is welcomed as a better alternative to the Contracts for Difference (CfD) scheme for nuclear developments. However, financing new nuclear projects is not straightforward and there will still be challenges under …

▤ View document · ↗ GOV.UK
3 May 2023 | Committee report linked

We recognise the high cost of construction of nuclear energy plants and the large upfront investment needed to get a project to final investment decision. We hope that the Regulated Asset Base (RAB) model will help overcome these investment challenges. However, there are valid concerns about the risk to consumers, which needs to be closely monitored in order to be better understood as the RAB model is used for the first time for a nuclear project at Sizewell C. The Government should explain t...

We recognise the high cost of construction of nuclear energy plants and the large upfront investment needed to get a project to final investment decision. We hope that the Regulated Asset Base (RAB) model will help overcome these investment challenges. …

▤ View document · ↗ GOV.UK
20 May 2022 | Committee report linked

Nuclear power contributed around 16% of the UK’s electricity in 2020. As at January 2022, five of the seven AGR stations and the Pressurised Water Reactor at Sizewell B are the only nuclear power stations in the UK currently generating electricity; two of the AGRs, Dungeness B and Hunterston B, closed in June 2021 and January 2022 respectively. A further station is expected to close in 2022, two more in 2024 and the remaining two in 2028. All of the AGR stations will close by 2028, with only ...

Nuclear power contributed around 16% of the UK’s electricity in 2020. As at January 2022, five of the seven AGR stations and the Pressurised Water Reactor at Sizewell B are the only nuclear power stations in the UK currently generating …

▤ View document · ↗ GOV.UK