The UK Energy Secretary has signed the final investment decision for Sizewell C, marking a pivotal moment in Britain’s pursuit of clean energy independence.
With an initial 44.9% stake, the government becomes the project’s single largest equity shareholder.
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This decision will propel the UK towards its goal of securing home-grown nuclear supply well beyond 2030 and support thousands of jobs nationwide.
Sizewell C is poised to provide power for 6 million homes and create 10,000 jobs once operational.
It will generate 1,500 apprenticeships, with 70% of construction contracts going to British businesses.
Energy Secretary Ed Miliband stated: “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.
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By GlobalData“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.”
This development propels forward the nation’s mission to become a clean energy superpower by reducing reliance on fossil fuels.
The plant promises cheaper, clean electricity for at least 60 years, potentially saving the UK’s electricity system £2bn annually.
The project investors include La Caisse with 20%, Centrica with 15%, Amber Infrastructure with 7.6% and EDF with 12.5% ownership.
The National Wealth Fund makes its debut in nuclear financing by providing most of the debt finance.
This is supported by a proposed £5bn debt guarantee from Bpifrance Assurance Export, France’s export credit agency.
The government will fund Sizewell C using a regulated asset base (RAB) model, which promises regulated, risk-adjusted returns.
The investment agreement leverages insights gained from the construction of Hinkley Point C to establish a funding model that distributes the £38bn cost of constructing Sizewell C among consumers, taxpayers and private investors, with a 20% cost-saving strategy.
International Public Partnerships (INPP) has committed £250m ($336m) total equity to the regulated entity managing Sizewell C, securing a 3% equity stake.
INPP plans to invest £50m annually up to 2030.
