The government becomes an equal partner of Electricité de France (EDF) in the project, allowing the exit of the Chinese public company China General Nuclear (CGN).
EDF will also provide an additional investment to match the government’s participation in the project. The government will work with the project company to seek to attract further third-party investment to help fund the project’s estimated £20 billion construction cost.
Sizewell C has been named as the first UK project to use the new Regulated Asset Base (RAB) funding model for nuclear – the same model for the Thames Tideway Tunnel and London Heathrow Terminal 5.
This lower cost method of financing is expected to result in savings of at least £30bn over the life of Suffolk Power Station compared to existing contracts for the difference system which was used to fudding Hickley Point C , currently under construction by a joint venture of Bouygues and Lang O’Rourke (Bylor) in Somerset.
The government is also considering setting up Great British Nuclear, an independent body (ALB) which will develop a pipeline of nuclear power stations, beyond Sizewell C.
The investment also enables the exit of China General Nuclear (CGN) from the project, including takeover costs, possible taxes due and commercial arrangements.
Chancellor of the Exchequer Jeremy Hunt said: “Today’s investment in Sizewell C represents the biggest step on our road to energy independence – the first state backing of a nuclear project in addition to 30 years old. When complete, this mega project will power millions of homes with clean, affordable, home-grown energy for decades to come.
“Along with our drive to improve the country’s energy efficiency, this package will help permanently reduce energy bills and prevent Britain from being at the mercy of global gas prices beyond our control. “
Simone Rossi, Chief Executive of EDF Energy, said: “This is a great vote of confidence in Sizewell C and we are very pleased that the government is partnering with us to make the project ready for further investment. Sizewell C will build on the achievements of Hinkley Point C and replicating its design will provide more certainty on schedule and cost. It will give a boost to jobs and skills in the nuclear industry and provide huge new opportunities for Suffolk communities. The new nuclear will shield Britain from the volatility of global gas markets and help control bills for homes and businesses across the country.
“Better energy efficiency will strengthen Britain’s energy independence and reduce household bills permanently, and we welcome the government’s action. We are prepared to increase our installation rates to help more households benefit from lower bills. »