Energy secretary Ed Miliband has today signed the final investment decision for Sizewell C.
The UK government has agreed deals with international investors to finance construction of new nuclear power station at Sizewell in Suffolk.
The UK state will own a 44.9% stake, making it the single biggest equity shareholder but not in total control of the project.
Other shareholders include Canadian investment fund La Caisse with 20%, British energy company Centrica with 15%, French energy company EDF with 12.5% and US investor Amber Infrastructure with 7.6%.
The project will be supported by a £5bn debt guarantee from France’s export credit agency, Bpifrance Assurance Export, to back the company’s commercial bank loans.
The UK National Wealth Fund – the government’s principal investor and policy bank – will provide the majority of the project’s debt finance, working alongside Bpifrance Assurance Export.
The total equity and debt finance made available exceeds the £38bn target construction cost, to safeguard against overruns.
The target construction cost is around £10bn – or 20% – below the costs of the virtual replica Hinkley Point C that is currently under construction in Somerset, billions over budget and years behind schedule.
Sizewell C was projected to cost around £20bn when its planning application was submitted in May 2020.
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.”
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.”
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