Millions of working people will benefit from cheaper clean power, as the government agrees a landmark, multi-billion-pound deal to build Sizewell C – a major step forward in the delivery of a new ‘golden age’ of nuclear under the government’s Plan for Change.
The Energy Secretary has signed the final investment decision for Sizewell C, which will deliver clean power for the equivalent of 6 million homes and support 10,000 jobs once operational. The deal represents the country’s most significant public investment in clean, homegrown energy this century - in a major boost for energy security, jobs and economic growth.
The deal ends an era of dithering and delay to give Sizewell C the go-ahead, that will help secure Britain’s home-grown nuclear supply far beyond 2030. It marks a major step in the government’s clean energy superpower mission, which is about replacing the UK’s dependence on fossil fuel markets with clean homegrown power that the country controls, to bring down bills for good and protect family finances.
The plant will deliver cheaper clean electricity for generations of families for at least 6 decades. Analysis shows the project could create savings of £2 billion a year across the future low-carbon electricity system once operational - leading to cheaper power for consumers.
The project will also help to kick-start economic growth and get Britain building. At peak construction, Sizewell C will support 10,000 jobs directly employed in the project, and thousands more in the nationwide supply chain, as well as creating 1,500 apprenticeships. Seventy per cent 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.
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 government has confirmed it will take an initial 44.9% 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%, Centrica with 15%, and Amber Infrastructure with an initial 7.6%. This comes alongside French energy giant EDF taking a 12.5% take in the project, set out earlier this month, as well as a proposed £5 billion debt guarantee from France’s export credit agency, Bpifrance Assurance Export, to back the company’s commercial bank loans.
Alongside this investment, 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.
Chancellor of the Exchequer Rachel Reeves said: “La Caisse, Centrica and Amber’s multi-billion pound investment is a powerful endorsement of the UK as the best place to do business and as a global hub for nuclear energy.
“Delivering next generation, publicly-owned clean power is vital to our energy security and growth, which is why we backed Sizewell C. This investment will create thousands of good quality jobs and boost the local economy as we deliver on our Plan for Change.”
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 £4.4 billion 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.”
