- Britain will invest £14.2 billion in the Sizewell C nuclear plant to boost energy security, create 10,000 jobs, and power 6 million homes as part of its clean energy push.
- The government adopted a regulated asset base (RAB) model, increased its stake to 83.8%, and seeks new investors as EDF’s share decreases.
On Tuesday, the British government announced a £14.2 billion ($19.25 billion) investment in the Sizewell C nuclear power plant in Suffolk, southeast England. The funding forms part of the country’s broader four-year spending review, setting national priorities through 2029.
The UK is pursuing new nuclear projects to replace its ageing fleet, enhance energy security, and achieve its climate targets. Once operational, Sizewell C should power around 6 million homes and create approximately 10,000 jobs during peak construction.
“We need new nuclear to deliver a golden age of clean energy abundance,” said Energy Minister Ed Miliband. “That is the only way to protect family finances, take back control of our energy, and tackle the climate crisis.”
While the government confirmed its investment, it did not disclose the project’s total cost or completion timeline. Officials also did not mention additional investors, though the project’s developer previously told Reuters that five parties were involved in bidding.
The government plans to use a regulated asset base (RAB) funding model, allowing developers to receive construction payments. Proponents argue that this approach reduces financing risk and lowers borrowing costs, but critics warn it could expose taxpayers to cost overruns and increase energy bills.
EDF UK CEO Simone Rossi welcomed the investment, calling it “a vote of confidence in Hinkley Point C, which has restarted the UK nuclear industry and built the experience and skills that will benefit Sizewell C.”
Originally an EDF-led project, Sizewell C is now majority-owned by the UK government, which held an 83.8% stake at the end of December. EDF retained a 16.2% stake, which should decrease further following the latest announcement.
If completed, Sizewell C will become only the second new nuclear plant built in Britain in over two decades, following Hinkley Point C, also led by France’s EDF. That project has faced multiple delays and cost increases, with current estimates placing the final cost between £31 billion and £34 billion (at 2015 prices) and operations expected to begin in 2029.