UK strikes deal with private investors to build £38bn Sizewell C nuclear power plant
The long-awaited multibillion-pound deal brings together investment from the UK government and Sizewell C's developer, the French energy group EDF, with a consortium of three other investors including the British Gas parent company Centrica.
The UK government's stake in the project stood at 84% at the end of last year compared with EDF's 16% share of the project. Under the final deal, the government will remain the project's largest shareholder, with a 44.9% stake, while the French utility's share shrinks to 12.5%.
Centrica will take a 15% share of the project while Canadian investment group La Caisse will hold 20%, and investment manager Amber Infrastructure will take an initial 7.6%.
The final agreement marks the end of a 15-year journey to secure investment for the nuclear plant since Sizewell C was first earmarked for new nuclear development in 2010.
It should deliver Britain's second nuclear power plant in a generation, capable of powering about 6m UK homes with low-carbon electricity, after EDF's Hinkley Point C nuclear plant, which is under construction in Somerset.
Rachel Reeves, the chancellor, said the multibillion-pound investment was 'a powerful endorsement of the UK as the best place to do business and as a global hub for nuclear energy'.
'Delivering next generation, publicly owned clean power is vital to our energy security and growth, which is why we backed Sizewell C. This investment will create thousands of good quality jobs and boost the local economy as we deliver on our plan for change,' she said.
Ed Miliband, the energy secretary, said last month that the project marked a 'golden age' for Britain's nuclear industry, which was crucial to 'get Britain off the fossil fuel rollercoaster' and meet the country's net zero targets.
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The financial framework designed to support the project has angered anti-nuclear campaigners because it will grant EDF support via energy bills from the start of its construction. This means households could be on the hook for construction delays and cost overruns at Sizewell C, according to campaigners.
The new framework differs from the model used to support the Hinkley Point C project, which will earn revenue for EDF only once the plant begins generating electricity in the early 2030s.
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