Sizewell C has today been given its Final Investment Decision by the British Government, unlocking the biggest investment in clean, homegrown energy in a generation and marking a major step in delivering secure, cheaper, low-carbon electricity for the UK.
No new nuclear plant has opened in the UK since 1995, with all of the existing fleet except Sizewell B likely to be phased out by the early 2030s. In a world-first for the industry, today’s decision also unlocks financing for British nuclear energy by adopting the Regulated Asset Base model, which uses both public investment and private capital.
Once online, Sizewell C will supply electricity to the equivalent of six million homes for at least 60 years and is to deliver electricity system savings of £2 billion a year on average once operational.
The project will be delivered at a capital cost of around £38 billion (2024 prices). Under the deal, investors, contractors, and project managers are incentivised to deliver the project early and at the lowest cost possible. The figure also includes contingencies and excludes potential cost offsets from asset sales or other opportunities. Sizewell C also benefits from the experience of its sister plant, Hinkley Point C, where construction of elements of the second unit have been running 50% faster than the first. The lessons from Hinkley will be applied directly to Sizewell C.
The government has confirmed it will take an initial 44.9 per cent stake to become the single biggest equity shareholder in the project – meaning the British people will benefit from the government’s investment. The new Sizewell C shareholders include La Caisse with 20 per cent, Centrica with 15 per cent, and Amber Infrastructure with an initial 7.6 per cent. This comes alongside EDF taking a 12.5 per cent take in the project announced earlier this month.
Julia Pyke, Joint Managing Director of Sizewell C, said “Sizewell C will cost consumers around £1 per month as an average over the duration of construction. Once operational, the project could lead to savings of £2bn a year across the electricity system. Our plan is to deliver Sizewell C at a capital cost of around £38bn. Our estimate is the result of very detailed scrutiny of costs at Hinkley Point C and long negotiations with our suppliers. It has been subject to third-party peer review and has been scrutinised by investors and lenders and has been subject to extensive due diligence as part of the financing process. A capital cost of £38bn represents around 20% saving compared with Hinkley Point C and demonstrates the value of the UK’s fleet approach.”
Nigel Cann, Joint Managing Director of Sizewell C, added: Any infrastructure project of this scale will face risks and potentially disruptive events outside of its control, as well as opportunities to reduce costs. Our supply chain is strongly incentivised to keep costs down and our investors will lose potential revenue if there are overruns.”
Construction is already underway on the site in Suffolk, with over £330 million in contracts signed with local businesses. At its peak, the project will directly support 10,000 jobs with up to 60,000 more in the supply chain, and it will create 1,500 apprenticeships. Around 70% of the project’s spend is expected to go to UK companies.
Sizewell C marks a significant step in building a fleet of large and small nuclear plants across the country, and complements Britain’s growing portfolio of renewables and clean energy technologies.
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