The government has given the green light to build the Sizewell C nuclear power plant after signing off a multi-billion pound final investment decision (FID).  

Energy secretary Ed Miliband today (22 July) signed the FID for the plant, estimated to cost around £38bn, which will deliver clean power for the equivalent of six million homes and support 10,000 jobs once operational.

Sizewell C will deliver electricity system savings of £2bn a year on average once operational, with the project being built for around 20% less than Hinkley Point C - demonstrating the value of building a virtual replica project. 

The government has confirmed it will take an initial 44.9% stake to become the single biggest equity shareholder in the project.

Other shareholders include La Caisse with 20%, Centrica with 15%, and Amber Infrastructure with an initial 7.6%. This comes alongside French energy giant EDF taking a 12.5% in the project, set out earlier this month, as well as a proposed £5bn debt guarantee from France’s export credit agency, Bpifrance Assurance Export, to back the company’s commercial bank loans.  

The National Wealth Fund - the government’s principal investor and policy bank - is making its first investment in nuclear energy. It will provide the majority of the project’s debt finance, working alongside Bpifrance Assurance Export, to help support the building of the power plant. 

The total equity and debt finance made available exceeds the target construction cost of around £38bn, acting as a safeguard for taxpayers in case of overruns and is standard for a project of this size and complexity.

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 project will also help to kick-start economic growth. Thousands of jobs will be supported in the nationwide supply chain, as well as the project creating 1,500 apprenticeships. Around 70% of the value of construction is set to be awarded to British businesses - Sizewell C Ltd anticipates it will have 3,500 UK companies in its supply chain across the entire country.   

Julia Pyke and Nigel Cann, joint managing directors of Sizewell C, said: “We’re delighted to welcome new investors alongside government and EDF who, like our suppliers, have strong incentives to keep costs under control and ensure we deliver Sizewell C successfully for consumers and taxpayers

“By investing in Sizewell C, they are laying the foundations for a more secure, cleaner and more affordable energy system. Because 70% of our construction spend will be in the UK, with a £4.4bn commitment to the east of England, they will also help to create thousands of great jobs and new opportunities for people and businesses up and down the country. 

“We are determined to deliver this major infrastructure differently, and to make sure this is a project Britain can be proud of.”

Simone Rossi, CEO of EDF in the UK, said: “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.”

Emmanuel Jaclot, executive vice-president and head of infrastructure at La Caisse, added: “We’re proud to support the UK government in delivering this landmark project, advancing the country’s energy security and economic growth ambitions. Our investment demonstrates our confidence in the UK market – our largest destination outside North America – and aligns with our commitment to the energy transition and decarbonization, enabled by our long-term capital and active ownership.”

The news has been welcomed by industry. Marie-Claude Hemming, director of policy at ACE Group, said: “Sizewell C not only plays a vital role in driving cleaner energy and green growth but also helps secure the UK’s homegrown energy supply. For too long the construction of large energy infrastructure projects have been delayed, negatively impacting both investor and public confidence.

“This decision marks a step change in the delivery of the world class infrastructure we all need to thrive. The government intends that new power station will be 20% cheaper than its replica at Hinkley Point C. It is clear that lessons have been learned. Now the starting gun has sounded for the green energy revolution.”