Sizewell C has officially been given the government’s final stamp of approval, who will become the £38bn project’s primary funder.
Energy Secretary Ed Miliband put pen to paper on a deal with private investors La Caisse, Centrica, EDF and Amber Infrastructure to grant the project the final green light.
It is anticipated the project will support 10,000 jobs during construction, alongside 1,500 apprenticeships. Thousands more jobs will benefit through the national supply chain.
A total of 70% of the value of construction is set to be awarded to British businesses, or around 3,500 UK companies. More than £4bn of its construction spend has been committed to the East of England alone.
More than £330million in contracts have already been signed with local businesses, including Suffolk-based concrete contractor Eastern Concrete Ltd.
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.”
The power station, on the Suffolk coast, will supply around six million homes with clean energy.
Ownership of the project will be split between:
- UK government: 44.9%
- La Caisse: 20%
- Centrica: 15%
- EDF: 12.5%
- Amber Infrastructure: 7.6%
Chancellor of the Exchequer Rachel Reeves said: “La Caisse, Centrica and Amber’s multi-billion-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.
“This investment will create thousands of good quality jobs and boost the local economy as we deliver on our Plan for Change.”
It had previously been projected that the power plant would cost around £20bn – although Julia Pyke, Joint Managing Director of Sizewell C, said the new figure still represents a saving of around 20% compared to Hinkley Point C.
Ms Pyke added: “Sizewell C will cost consumers around £1 per month as an average over the duration of construction. Once operational, the project could lead to savings of £2bn a year across the electricity system.
“Our plan is to deliver Sizewell C at a capital cost of around £38bn. Our estimate is the result of very detailed scrutiny of costs at Hinkley Point C and long negotiations with our suppliers.
“It has been subject to third-party peer review and has been scrutinised by investors and lenders and has been subject to extensive due diligence as part of the financing process.
“A capital cost of £38bn represents around 20% saving compared with Hinkley Point C and demonstrates the value of the UK’s fleet approach.”
Sizewell C is expected to come online in the mid to late 2030s.