UK greenlights $51 billion Sizewell C nuclear project to power millions

The UK has made a final investment decision to proceed with the Sizewell C nuclear power plant, a £38 billion ($51 billion) project considered vital to the nation’s energy security and climate objectives.

According to foreign media, the British government will maintain a minority ownership of approximately 45%, with other investors including French state-owned Electricité de France (EDF), Caisse de Dépôt et Placement du Québec, Centrica Plc, and Amber Infrastructure Group Ltd. 

The strong involvement of private investors is viewed by the government as a significant achievement in its efforts to stimulate investment and economic growth.

“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,” UK Energy Minister Ed Miliband said in a statement on July 22.

This decision marks a major milestone for Prime Minister Keir Starmer’s administration as it seeks to expand low-carbon electricity production to reduce emissions and boost the economy. EDF has stated that the two reactors planned for Suffolk, on England’s east coast, will generate electricity for around six million households over an estimated lifespan of 60 years.

The development plans for Sizewell C date back over a decade. Previous UK governments faced challenges in securing financing for the project, ultimately settling on a hybrid funding model combining public and private capital. Meanwhile, costs for new nuclear projects in the UK have sharply increased.

Sizewell C is designed as a replica of the Hinkley Point C plant currently under construction in Somerset. Hinkley Point C has experienced repeated delays, partly due to disruptions caused by the Covid-19 pandemic, and may not be completed until after 2030. Its costs have more than doubled, now exceeding £40 billion.

Developers of Sizewell C argue that the project can be completed faster and more cost-effectively than Hinkley Point C due to efficiencies gained from repeating the design and construction process.

By Tamilla Hasanova