In a milestone moment for Britain’s energy strategy, the UK Government has formally approved its final investment decision for the construction of the Sizewell C nuclear power plant in Suffolk.
The multi-billion-pound deal is set to deliver cleaner, cheaper electricity for millions of households and kickstart a new era for nuclear energy in the UK.
Once operational, Sizewell C will provide low-carbon power for the equivalent of six million homes, reinforcing energy security while supporting economic growth and employment across the country.
Commenting on the landmark deal, UK Energy Secretary Ed 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.”
Sizewell C: A Major step forward for UK energy independence
This final investment decision ends years of uncertainty surrounding the project. It represents the most significant public investment in domestic clean energy in a generation, ensuring Britain’s homegrown nuclear supply is secure well beyond 2030.
Sizewell C is expected to generate clean electricity for at least 60 years, helping to reduce reliance on fossil fuels and imported energy. Government analysis shows the plant could save up to £2bn a year across the future low-carbon electricity system.
Creating jobs and supporting UK businesses
At the height of construction, Sizewell C will support 10,000 jobs directly, with thousands more created throughout the wider UK supply chain.
The project also includes 1,500 apprenticeships, providing valuable training opportunities for the next generation of workers.
70% of the construction value is expected to be awarded to British businesses, with Sizewell C Ltd estimating that 3,500 UK companies will be involved across the country. This will deliver a significant boost to local and national economic development.
British public becomes the largest shareholder
Under the deal, the UK Government will take an initial 44.9% equity stake in Sizewell C, making it the project’s largest single investor. This means the British public will share directly in the benefits of this critical infrastructure.
Additional shareholders include La Caisse (20%), Centrica (15%), Amber Infrastructure (7.6%), and EDF, the French energy company, with 12.5%.
France’s export credit agency, Bpifrance Assurance Export, has proposed a £5bn debt guarantee to support the company’s commercial bank loans.
The UK’s National Wealth Fund will make its first-ever investment in nuclear energy by providing the majority of the debt financing for Sizewell C.
This will be done in partnership with Bpifrance Assurance Export, helping to ensure the project receives the funding it needs to proceed.
Smarter financing model based on Hinkley Point C
The investment model for Sizewell C is informed by lessons learned from the development of Hinkley Point C.
The revised structure spreads the project’s £38bn cost between taxpayers, energy consumers, and private investors.
This approach is expected to reduce the overall cost by around 20% compared with Hinkley Point C, thanks to the efficiencies of building a virtual replica.
For consumers, the financial impact is expected to be limited to an average of £1 per month on energy bills during the construction period. Once completed, the project will provide stable, affordable energy for generations.
Reviving the UK’s nuclear ambitions
Although the UK led the world in nuclear energy in the 1950s, no new nuclear plant has opened since 1995.
Sizewell C, identified as a priority site in 2009, has taken over a decade to reach full funding and final approval.
The government now has its most ambitious nuclear programme in decades. Alongside Sizewell C and Hinkley Point C, future plans include the rollout of small modular reactors (SMRs).
Rolls-Royce SMR was recently selected to build the UK’s first SMRs, and a new agreement with the Czech Republic will support international cooperation in this field.
With the Sizewell C investment confirmed, the UK is officially entering a new golden age of nuclear power.
The project promises not only cheaper, cleaner electricity, but also a vital boost to economic growth, energy independence, and job creation, marking a turning point in how Britain powers its homes and its future.
