This is an important moment for the future of small modular reactors (SMRs) as we set out in Chapter 3. Following the £500 million Government and investor funded development of an SMR concept through to the beginning stages of regulatory approval. Clarity is needed on the Government’s plans to deploy the technology if it completes the generic design assessment. This includes deciding on what financing model will be made available should the policy be to deploy SMRs in supplying power to the grid. The Contracts for Difference (CfD) model has proved successful in financing and driving down the costs of clean energy. Key to the success of CfDs for renewables to date has been competition between potential operators which has driven down the price paid for electricity generation.