Sizewell C has officially reached financial close after securing a further £5.5bn in funding – paving the way for the nuclear power plant’s full-scale construction.
The new financial package is made up of £5bn in debts, secured through the BpifranceAE export credit facility, alongside £500m sourced via a working capital facility and a National Wealth Fund term loan.
That debt raise has been supported by 13 banks, including Lloyds, Citibank, HSBC and BNP Paribas.
The package means the plant will be the first nuclear project in the world to have attracted independent financial investment.
Sizewell C’s Joint-Managing Directors, Julia Pyke and Nigel Cann, said: “Sizewell C is a transformative project for Britain’s energy future, delivering reliable low-carbon power, tens of thousands of jobs, and a major boost to the UK economy.
“In Sizewell C the UK has pioneered a model for financing new build nuclear which works for both consumers and private investors and has attracted considerable interest from other countries with nuclear power development plans.”
The latest funding package has been achieved through what’s known as the UK’s Regulated Asset Base (RAB) model.
It has previously been used to finance projects including Heathrow Terminal 5 and the Thames Tideway Tunnel.
Sizewell C’s owners have estimated the RAB model could save as much as £30bn compared to other models.
Energy Secretary, Ed Miliband MP, said: “This is a major milestone in delivering our new golden age of nuclear, with private investment starting to flow into Sizewell C.
“By backing nuclear, we are creating thousands of high-quality jobs across the country, supporting British supply chains and keeping the lights on with homegrown energy for generations to come.”
Construction of the £38bn power plant is expected to be completed in the mid-to-late 2030s.