A new nuclear power plant costing £38billion will be built in Suffolk, the Government has announced. The Department for Energy Security and Net Zero (DESNZ) said on Tuesday (July 22) that Energy Secretary Ed Miliband has signed off the final investment decision for the development.
The Government will become the biggest equity shareholder in the project with a 44.9% stake. Investors in the new Sizewell C include La Caisse with 20%, Centrica with 15% and Amber Infrastructure with an initial 7.6%. French energy giant EDF announced earlier this month it is taking a 12.5% stake – lower than the previously stated 16.2%.
In a statement, 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.”
When built, Sizewell C will provide more than 60 years of power to the grid and power the equivalent of six million homes. It is expected to create some 10,000 jobs once it is operational. This is expected to be in the 2030s.
Its backers hail the scheme as helping to boost the economy, strengthen energy security and help reduce reliance on fossil fuels.
The new nuclear plant was first earmarked for development in 2010. The cost of Sizewell C’s construction is almost double the £20bn estimated by developer EDF five years ago.
DESNZ insisted the price tag is about 20% cheaper than the development of the Hinkley Point C nuclear power station in Somerset.
Quebec-based La Caisse is the world’s second largest institutional infrastructure investor and currently manages over £20bn in UK investments
Chancellor Rachel Reeves said: “La Caisse, Centrica and Amber’s multibillion-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.”
Chris O’Shea, Centrica’s chief executive, said Sizewell C was a “compelling investment” for the company’s shareholders and the country as a whole.
He added: “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.”