Financial support for nuclear lifetime extensions

Having considered the views submitted, we confirm our intention to proceed with the proposed amendment to enable existing nuclear generating stations to become eligible for CfD support for lifetime-extension activities.

A summary of responses and the government’s position are set out in the government response.

The government will lay regulations before Parliament to incorporate the consultation policy proposal into national legislation, subject to Parliamentary approval.

Following the legislative process, any award of a CfD for a nuclear lifetime extension project will be subject to robust value-for-money and subsidy-control assessments.

We received 13 responses to the consultation from a broad range of energy sector stakeholders, including:

• electricity generators
• investors
• supply-chain organisations
• statutory consultees

General feedback included:

• broad support for enabling CfD eligibility for nuclear lifetime extensions, with many respondents emphasising the value-for-money, energy-security, and decarbonisation benefits of extending existing nuclear assets
• concerns from a minority about potential market distortions and requests for evidence of the need for intervention, including risks to wholesale and capacity markets, increased costs to consumers, and the need for full impact assessment and transparency before proceeding
• requests for assurance that any CfD for a lifetime-extension project would not affect funding available for renewables, and that the absence of a competitive auction would be addressed through value-for-money and evidence requirements.