Pontins Brean Sands could close to the public so it can be used to provide homes for Hinkley Point C workers.
If the plans go ahead, the park will be used as accommodation for EDF staff for three years from November 2022. The site, which is owned by Britannia Hotels, would then return to being a holiday park.
Hinkley Point C is the first nuclear power station to be built in the UK in more than 20 years. Once complete, it will provide low-carbon electricity for around six million homes.
Now EDF, which is the firm behind the nuclear power station, has applied to Sedgemoor District Council for an environmental impact assessment study to assess whether the change is likely to have significant effects on the environment.
In its planning application, EDF said: "There are no building works proposed as part of the planning application.
"Improvements will be made to the site and the facilities prior to the use by Hinkley Point workers, and as such will seek to create a positive legacy when the holiday park reverts to general tourist use.
“The improvements will comprise of renovation and modernisation of the chalet units, improvements to the electrical supply, installation of Wi-Fi connections and upgrading the infrastructure.”
The holiday park is around 15 miles from the construction site and a bus service will be provided for the workers to travel to the site.
EDF says the plans will have no cost impact on British consumers or taxpayers. The holiday complex regularly comes under fire from guests who complain about dirty and outdated chalets.
Some residents are not impressed by the plans. Justin Jeffries said: "So lots and lots of buses will be running 24/7 right through Burnham as they do around Bridgwater? That will be fun for locals and a further nightmare during the school holidays."
Andrew Cockcroft, EDF’s senior manager for community relations, said: “As Hinkley Point C’s workforce increases we are actively exploring a wide range of options for additional accommodation. We will work closely with the local community around any new accommodation site as our plans develop in the months ahead.”
Feedback about the plans is welcomed by Sedgemoor District Council until 23 August