The United Kingdom government has given the final investment decision for the Sizewell C nuclear power plant.
Britain's energy secretary Ed Miliband has signed off the multibillion-pound deal for the nuclear power plant that aims to deliver clean energy to about six million homes for decades.
The UK government will be the largest shareholder of the £38bn project. Other shareholders include France-based EDF, Centrica, La Caisse, and Amber Infrastructure. The UK government will hold a 44.9% stake in the project initially, as it emerges as the single biggest equity shareholder in the project.
The next biggest shareholder in the nuclear power plant will be the Canadian investment fund La Caisse, which has a 20% stake.
The investment deal for the Sizewell C project
The UK government says that the project will see Sizewell deliver electricity system savings of £2bn a year on average once operational.
A press release by the UK government states that it is a significant step forward in the delivery of a new ‘golden age’ of nuclear under the government’s Plan for Change.
The signing ends a long list of delays to give Sizewell C the green light. The government hopes that it will help secure Britain’s home-grown nuclear supply far beyond 2030.
The project has the potential to substantially cut the country’s dependence on fossil fuels for at least six decades. Moreover, Sizewell C will support 10,000 jobs directly employed in the project, and many more in the nationwide supply chain.
The project will see 3,500 UK-based companies as part of the supply chain, and the government aims to award 70% of the value of the construction to British businesses.
“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, home-grown power to millions of homes for generations to come,” said Miliband.
“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.”
The nuclear power plant project
The UK government says that it has learnt from the funding model employed in the construction of Hinkley Point C to spread the cost of building Sizewell C between consumers, taxpayers, and private investors.
This is the first time that the British people will be co-owners of a nuclear power plant alongside experienced private sector partners – with consumers to benefit from the government’s investment.
“This will ensure the impact on consumer bills is limited to an average of around £1 per month over the duration of Sizewell C’s construction, with the nuclear plant to deliver cheaper clean power for decades to come once operational,” the release stated.
No new nuclear power plant has opened in the UK since 1995, and Sizewell C – alongside Hinkley Point C and other small modular reactors (SMRs) – aims to change that for the better.
The project claims to provide clean energy for more than 60 years, with nine million tons of carbon dioxide emissions avoided each year of operation.
The plan is for a 3.2 gigawatt power station that will be built next to Sizewell B. The Sizewell C project will replicate the design and operation of the Hinkley Point C nuclear power plant.
Quite recently, the world’s largest land crane, named Big Carl, had placed the giant dome onto Hinkley Point C’s second nuclear reactor building.