At a milestone moment in the UK’s energy strategy, the UK government officially approved the final investment decision on the construction of the Sizewell C nuclear power plant in Suffolk.
The multi-billion pound deal is set to provide clean, inexpensive electricity to millions of households and kickstart the new era of UK nuclear energy.
When in operation, Sizewell C will provide 6 million homes worth of low-carbon electricity, strengthening energy security while supporting economic growth and employment across the country.
Commenting on the groundbreaking deal, UK Energy Secretary Ed Miliband said, “It’s time for us to do big things again and build big projects in this country. Today, we announce investments that will provide clean, homemade power to millions of homes coming.
“This government is making the necessary investments to deliver a new golden age of nuclear, so we can end the delays and free us from the destruction of the global fossil fuel market.
Size Well C: Great Advances for UK Energy Independence
This final investment decision ends years of uncertainty surrounding the project. This represents the most important public investment in domestic clean energy in a generation, ensuring that the UK’s own nuclear supply is much safer in 2030.
Sizewell C is expected to generate clean electricity for at least 60 years, helping to reduce its dependence on fossil fuels and imported energy. Government analysis shows that factories can save up to £2 billion a year across future low-carbon electricity systems.
Create jobs and support UK businesses
At the height of construction, Sizewell C directly supports 10,000 jobs, creating thousands more across the UK supply chain.
The project also includes 1,500 apprentices, providing valuable training opportunities for the next generation of workers.
It is expected that 70% of the construction value will be awarded to British companies, with Sizewell C Ltd estimated that 3,500 UK companies will be involved nationwide. This will greatly improve regional and national economic development.
British citizens become the largest shareholder
Under this agreement, the UK government will acquire the first 44.9% stake in Sizewell C, becoming the largest single investor in the project. This means that UK citizens will directly share the benefits of this important infrastructure.
Additional shareholders include La Caisse (20%), Centrica (15%), Amber Infrastructure (7.6%) and French Energy Company EDFs, with 12.5%.
BPIFRANCE ASSURINCE EXPORT, the French export credit agency, proposes a £5 billion debt guarantee to support the company’s commercial bank loans.
The UK National Asset Fund is planning to make its first investment in nuclear power by providing a large portion of Sizewell C’s debt funds.
This will be done in collaboration with BPifrance Assurance Export to ensure that the project receives the funds needed to proceed.
A smarter fundraising model based on Hinkley Point c
Sizewell C’s investment model is informed by lessons learned from the development of Hinkley Point C.
The revised structure spreads the project’s £38 billion cost among taxpayers, energy consumers and private investors.
This approach is expected to reduce overall costs by around 20% compared to Hinkley Point C, thanks to the efficiency of building virtual replicas.
For consumers, the financial impact is expected to be limited to £1 a month on energy bills during construction. Once completed, the project will provide a stable and affordable energy for generations.
Reviving British nuclear ambitions
The UK led the world of nuclear energy in the 1950s, but no new nuclear power plants have been opened since 1995.
Identified as a priority site in 2009, Sizewell C took over a decade to get full funding and final approval.
The government currently has the most ambitious nuclear program of decades. In addition to Sizewell C and Hinkley Point C, future plans include the deployment of small modular reactors (SMRs).
The Rolls-Royce SMR was recently selected to build the UK’s first SMR, and a new agreement with the Czech Republic will support international cooperation in this area.
With the confirmation of Sizewell C Investment, the UK is officially entering a golden age of new nuclear power generation.
The project also promises not only cheaper and cleaner electricity, but also significantly boosts economic growth, energy independence and job creation, marking a turning point in the way the UK moves its home and its future.
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