Government signs off £38 billion nuclear plant

The Government has signed off on the UK’s biggest nuclear power project in a generation, confirming the final investment decision for Sizewell C on the Suffolk coast.

Backed by a £38 billion deal between the Government and private investors, the plant is expected to generate low-carbon electricity for six million homes and support 10,000 jobs at peak construction. 

It will begin supplying power in the mid-to-late 2030s and operate for at least 60 years.

Announcing the deal, energy secretary Ed Miliband said: “It is time to do big things and build big projects in this country again – and today we announce an investment that will provide clean, homegrown power to millions of homes for generations to come. 

“This Government is making the investment needed to deliver a new golden age of nuclear, so we can end delays and free us from the ravages of the global fossil fuel markets to bring bills down for good.” 

The plant’s approval comes 15 years after it was first earmarked for development and marks a milestone in the UK’s ambition to become a “clean energy superpower”. 

Despite criticism from anti-nuclear campaigners over the funding model, the deal ensures investors are protected from cost overruns and delays.

The Government will remain the largest shareholder, with a 44.9 per cent stake.

Other investors include the French state-owned energy group EDF (12.5 per cent), British Gas parent company Centrica (15 per cent), Canadian group La Caisse (20 per cent) and Amber Infrastructure (7.6 per cent). 

The National Wealth Fund and France’s Bpifrance will provide debt financing.

Households will also contribute to the cost via energy bills, paying about £1 per month until the project is complete. 

Simone Rossi, chief executive of EDF in the UK, added: “EDF welcomes the Government’s announcement that it has delivered on its commitment to take a final investment decision on the Sizewell C project.    

“Alongside Hinkley Point C, the project will help drive economic growth, strengthen energy security and lower bills over the long term. 

“The confirmation of the private investment is very positive and reflects the growing attraction of the role of nuclear power in the energy transition. 

“It could also pave the way for the financing of future large nuclear projects in the UK.” 

The Government expects Sizewell C to save the UK electricity system £2 billion annually once operational, with energy prices estimated between £60–£70 per megawatt-hour – lower than current market rates.

Rachel Reeves, the chancellor, said the multi-billion-pound investment was “a powerful endorsement of the UK as the best place to do business and as a global hub for nuclear energy”.

She added: “Delivering next generation, publicly owned clean power is vital to our energy security and growth, which is why we backed Sizewell C. 

“This investment will create thousands of good quality jobs and boost the local economy as we deliver on our plan for change.”

Built as a near replica of Hinkley Point C, in Somerset, Sizewell C will be around 20 per cent cheaper and aims to avoid the delays and cost overruns seen in the Somerset project. 

Around 70 per cent of construction value is set to go to British businesses, with 1500 apprenticeships also promised.

Sizewell C is part of a wider nuclear push that includes small modular reactors, aiming to bolster energy security and reduce reliance on fossil fuels.

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