UK government invests another billion in Sizewell C nuclear power project

The United Kingdom has announced a financial contribution of £1.3 billion (approximately CZK 37.7 billion) to the Sizewell C nuclear power plant project. The sum will be spent on essential infrastructure work, including the construction of roads and rail lines. Government support will allow construction work to continue until a final investment decision is made.

The Department for Energy Security and Net Zero said that "an additional contribution at this stage of the project will help keep it on schedule and reduce overall costs". The decision follows the granting of development consent, which approved the start of construction and will provide GBP 250 million (CZK 7.3 billion) in funding for local community development and environmental support.

A test of public confidence in the successful delivery of British nuclear projects

EDF, the project’s lead company, plans for Sizewell C to have two EPR reactors with a total installed capacity of 3200 MW. Together, they will be able to meet the electricity needs of approximately six million households. The plant will follow Hinkley Point C (also an EPR-1600 design), which is currently under construction in Somerset.

Julia Pyke and Nigel Cann, directors of the Sizewell C project, stressed the importance of the investment for Britain and for public confidence in the project’s successful delivery. They also said that Sizewell C will be key to developing British nuclear expertise and training workers. According to Minister for Nuclear Andrew Bowie, government support sends investors a signal that the country is pursuing a low-carbon energy path based on British nuclear power plants.

The British government’s entry into the Sizewell C project

EDF agreed with China General Nuclear (CGN) in October 2016 to develop the Sizewell C project to the point where a final investment decision could be made. EDF held an 80% stake and CGN owned a 20% stake. In recent years, however, the so-called “golden era” of British-Chinese relations has come to an end, as the British government reassessed and blocked Chinese investment in local infrastructure over security concerns.

In November 2022, the United Kingdom announced that it would invest GBP 679 million (CZK 19.8 billion) in the project, becoming EDF’s 50% partner in the Sizewell C nuclear power plant project. The state provided a further GBP 511 million (CZK 14.9 billion) in the summer of 2023, with the funding intended to take the project to a final investment decision. At the end of 2022, EDF announced that it planned to retain only a 20% stake in the project and make the remainder available to other investors.

The British government has now set out its plan to quadruple the current installed capacity of nuclear power plants by 2050 and is seeking additional investors for Sizewell C. In September, it launched a preliminary assessment of potential investors as the first stage of the capital-raising process.

Parliament has also passed legislative changes allowing a new way to finance major infrastructure projects. The regulated asset base (RAB) financing model allows consumers to contribute to the costs of new nuclear power plants while they are being built. Under the previous Contracts for Difference system, developers finance the project and begin receiving revenue only once the plant starts generating electricity.