UK Allocates $19 billion to Sizewell C Nuclear Project

After allocating $7.44 billion on top of $3.38 billion for the 3.2 GW Sizewell C Nuclear Power Project in September last year, the UK Government on Tuesday announced that it was allocating another $19.21 billion for the project.

A formal announcement providing more details will be announced by the UK’s Chancellor of the Exchequer Rachel Reeves, who will be presenting her Spending Review on Wednesday (June 11).

“Today we are investing in Britian’s renewal, with the biggest nuclear building programme in a generation. We are creating thousands of jobs, kickstarting economic growth and putting more money people’s pockets,” Rachel reeves said in a post on X on Tuesday.

Sizewell C will create 10,000 direct jobs, thousands more in firms supplying the plant and generate enough energy to power six million homes, the UK Treasury said.

Energy Secretary Ed Miliband said that the investment was necessary to usher in a golden age of clean energy. The investment was the only way to take back control of our energy, and tackle the climate crisis, he said.

Sizewell C Is one of eight sites identified in 2009 by former Energy Secretary Ed Miliband as a potential site for new nuclear. It is now not set to enter operation at full capacity until the mid-2030s.

Focus on Renewables

The Starmer-led Labour Government is aiming for nuclear, energy-from-waste, biomass and renewables to collectively account for 95% of the UK’s electricity generation mix by the end of the decade, under its Clean Power 2030 vision. The remainder will be accounted for by gas-fired power plants.

In nuclear, the Ministers are supporting a mix of large projects like Sizewell C and next-generation small modular reactors (SMRs). SMRs could, in theory, be delivered more rapidly and at lower cost, with less of an impact on local communities and ecosystems.

The Government granted Sizewell C a nuclear site licence last month after environmental impact assessments were updated.

Private Investment?

Sizewell C’s developer, EDF, initially estimated the project’s upfront cost at around $27.05 billion and refuted reports that the costs are now likely to be closer to $54 billion, accounting for challenges like supply chain inflation, and maintained that the project’s business case has only improved amid the gas price crisis.

The UK Government has said that it was securing a stronger commercial and regulatory regime than with previous large nuclear projects, in a bid to keep Sizewell C on time and to budget. Energy regulator Ofgem will act as the economic regulator for the project, advocating for the interests of taxpayers and energy consumers.

No private investors have been formally confirmed, but media reports have detailed interest from the likes of Brookfield Asset Management, Centrica, Schroders Greencoat and Amber Infrastructure Group. The UK Government has blocked China General Nuclear from investing despite its initial interest.