The UK Government is planning to acquire a 20% stake in the £20bn ($26bn) Sizewell C nuclear power station, according to a BBC report.
French multinational electric utility company EDF will also purchase an equal stake in the nuclear facility.
The UK Government anticipates that the two investments in the nuclear facility could encourage more investments from private investors and pension funds to acquire the remaining 60% stake in the Sizewell C power station.
The nuclear plant is part of the UK’s energy strategy, on which a decision is expected this week.
A final decision on the 2.7GW Wylfa Newydd nuclear power plant is expected to be taken in the future.
Earlier this year, the UK Government agreed to provide £100m to develop the Sizewell C nuclear facility.
By acquiring a 20% stake in the nuclear facility, the government’s investment in the project is expected to increase by between £1.5bn and £2bn.
In addition, the government plans to include solar and wind power generating facilities in its energy strategy.
Hinkley Point C is currently the UK’s only nuclear facility under construction and is expected to come online in 2026.
Nuclear power plants provided around 16% of the UK’s electricity in 2020, according to government records.
Once operational, the nuclear power plant will have the capacity to produce 7% of the country’s current power requirements.
In addition to the nuclear power facilities, the UK Government is also focusing on expediting the development of smaller reactors.
Prime Minister Boris Johnson has said that investing in domestic nuclear and renewable power will play a key role in ending the UK’s dependence on fossil fuels and establishing an independent energy policy as the country seeks to divest from Russian oil and gas supplies following the Russian invasion of Ukraine.