Who will fund Sizewell C nuclear plant and when will it be built?
Boris Johnson is poised to sign off as prime minister by giving the green light for a new nuclear reactor costing up to £30bn.
The decision to offer funding for the Sizewell C in Suffolk, in his final week in Downing Street, is expected to unlock significant private funding for the project after years bogged down in planning approvals. However, it would come after Johnson promised not to make any major spending decisions before leaving office. Here is the state of play.
The power station is planned to sit alongside the existing Sizewell B nuclear reactor on the Suffolk coast. When complete, it is estimated the 3.2 gigawatt plant will be capable of generating electricity for 6m homes for up to 60 years. Sizewell C is expected to plug a gap in Britain’s nuclear capabilities – most UK plants will be shut by 2030. Sizewell B is due to close in 2035, although its lifetime may be extended.
The plans were originally developed by France’s EDF, which holds an 80% stake in the project, and the Chinese state-backed nuclear power company CGN, which has a 20% holding. However, ministers are keen to avoid further Chinese involvement in UK nuclear sites amid worsening relations between Britain and China. CGN holds a stake in Hinkley Point C – the delayed and over-budget Somerset plant upon which plans for Sizewell are based. The UK government and EDF are expected to each take a 20% stake, while bankers at Barclays have been tasked by officials with finding investors for the remainder. Pension and infrastructure specialist funds are seen as the most probable candidates to invest.
Estimates have crept up from £20bn to a current range of £20bn to £30bn. The government will make a final decision on how much taxpayer funds will be put in –
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