Investors have been signed up for Sizewell C as the government admits the cost of building the nuclear plant has almost doubled.
Energy Secretary Ed Miliband said the plant will deliver clean power for the equivalent of six million homes and support 10,000 jobs once operational.
However, the cost of the project, revealed today, is now £38bn compared with an initial estimate of £20bn.
The government says it will be built for around 20% less than virtual replica Hinkley Point C and it deliver electricity system savings of £2 billion a year on average once operational.
Alongside private investors, the National Wealth Fund – the government’s principal investor and policy bank – is making its first investment in nuclear energy. It will provide the majority of the project’s debt finance, working alongside Bpifrance Assurance Export, to help support the building of the power plant.
Mr Miliband said: “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.
“This government is making the investment needed to deliver a new golden age of nuclear, so we can end delays and free us from the ravages of the global fossil fuel markets to bring bills down for good.”
Other shareholders are the Government (44.9%), La Caisse (20%), Centrica (15%), Électricité de France (12.5%) and Amber Infrastructure Group (7.6%).
The latter has an option to acquire a further 2.4% from the Government exercisable within 24 months of revenue being generated.
Chris O’Shea, group chief executive at Centrica, said: “The UK needs more reliable, affordable, zero carbon electricity, and Sizewell C will be critical to supporting the country’s energy system for many decades to come.
“That’s why I’m delighted to be announcing this milestone investment which will see Centrica commit £1.3 billion for a 15% equity stake in the project, and deepens our long-standing involvement in the UK nuclear industry.
“This isn’t just an investment in a new power station – it’s an investment in Britain’s energy independence, our net zero journey, and thousands of high-quality jobs across the country.
“Sizewell C is a compelling investment for our shareholders and the country as a whole, and I look forward to working with our world-class partners, EDF, La Caisse, Amber Infrastructure Group and the UK government, to make the project a great success.”
Chancellor Rachel Reeves said: “La Caisse, Centrica and Amber’s multi-billion pound investment is 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.”
Dr Douglas Parr, policy firector for Greenpeace UK, said: “The UK’s unswerving loyalty to the one energy source that consistently increases in price remains undimmed by our cost of living crisis.
At a time when much cheaper renewables and storage, grid improvements and a decoupling from gas would do so much more to reduce energy costs, this announcement is testament to both the lobbying skills of the nuclear industry, and a blind optimism from the government when it comes to building atomic infrastructure that actual experience seems incapable of shifting.
“The only significant difference between the slowly unfolding economic blunder of Hinkley C and the forthcoming economic disaster of Sizewell C is that Hinkley’s predictable construction problems, delays and cost overruns were borne by EDF.
“EDF know they can’t afford to make that mistake again, and so this time those costs will be borne by you, the British public.”
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