New investor plans to enter the UK's Sizewell C nuclear project

British energy group Centrica is preparing to return to nuclear power. According to information published by British media, it is in talks to buy up to a 15% stake in the planned Sizewell C nuclear power plant on England's east coast. The investment could reach approximately 2 billion pounds, and official confirmation is expected in the coming days. 

The Sizewell C project is one of the key components of the UK's efforts to secure low-carbon, stable electricity generation and reduce its dependence on fossil fuels. Once operational, the plant is expected to cover approximately 10 % of the UK's electricity consumption, marking a significant step forward in decarbonisation and strengthening energy security. Construction is facing rising costs, which could exceed 30–40 billion pounds.

However, according to media reports, the government has offered generous terms to attract investors. According to the British energy news website Energy Live News, several sources said the deal had been structured very attractively to secure investment from major institutional investors. Without fully secured financing, Sizewell C remains more an ambitious, high-stakes vision than a project ready to move straight into construction.

Centrica is no newcomer to nuclear power. It previously held stakes in British reactors operated by EDF, but withdrew from nuclear power in 2013 over concerns about rising investment costs. Its return today has been made possible by a different investment model, which the British government chose specifically because of high barriers to entry: the so-called regulated asset base (RAB) model. This model guarantees investors a return (at least around 4-5 % a year) and transfers some of the risk to consumers through charges levied during both construction and operation.

Decision expected by the end of summer

Centrica, best known as the owner and operator of British Gas, has judged this opportunity to be attractive. If the investment is confirmed, the company will once again join the key players in the British nuclear sector, alongside state-backed EDF, which will retain a stake of around 12.5 % in Sizewell C. Another major investor is Canadian group Brookfield, which is reportedly in talks for a stake of more than 20%.

For countries pursuing nuclear power, including the Czech Republic, this move may also be an interesting signal of a wider European trend: after years of stagnation and investors pulling out, nuclear power is returning to the scene, but with a new financing model. The RAB model is also being discussed in the EU, including in Czechia, where the government is exploring ways to reduce risk for private partners building new units at Dukovany or Temelín. Transferring some costs to consumers through charges could be similar to the approach Britain is introducing for Sizewell C.

The British government plans to provide up to 14.2 billion pounds in direct funding or guarantees to get the project off the ground. According to the British newspaper Financial Times, the Final Investment Decision (FID) could be made as soon as this summer, and no later than before Parliament's summer recess. The timing is probably no coincidence. French President Emmanuel Macron attended the Anglo-French summit in London this week.