Ministers are reportedly poised to give the go-ahead to the Sizewell C nuclear power plant in Suffolk within weeks, marking the end of a 15-year search for investment. The final approval is expected from Prime Minister Keir Starmer and French President Emmanuel Macron at a Franco-British summit in London on 8-10 July.
The government is in the final stages of securing billions of pounds in private investment for the project, which will be backed by a mix of taxpayer funding and energy bill contributions. The UK's spending review on 11 June is expected to outline the government's financial commitment. Currently, the UK holds an 84% stake in Sizewell C, with French developer EDF holding 16%, though EDF is reportedly keen to reduce its share further.
Potential investors include Schroders Greencoat, Equitix, Canadian pension fund CDPQ, Amber Infrastructure Partners, Brookfield Asset Management, UK pension fund USS, and insurer Rothesay, backed by Singaporean fund GIC. The project has already received £6.4bn in government funding, with £2.5bn from the previous Conservative government and £3.9bn from the current Labour administration.
The financial framework for Sizewell C has drawn criticism from anti-nuclear campaigners. Unlike the model for Hinkley Point C, which pays EDF only after electricity generation begins, the new model would allow EDF to receive support via energy bills from the start of construction. Campaigners warn that this could leave billpayers exposed to cost overruns and delays.
Alison Downes of Stop Sizewell C said: “We’ll all pay for the £40bn folly that is Sizewell C. By starting construction and ploughing £6.4bn of taxpayers’ money so far into the project the government has undermined its negotiating position and essentially written private investors a blank cheque. Any that came onboard at the 11th hour will have been bribed by generous terms at the expense of consumers, who will be forced to pay a nuclear tax on household energy bills for many years until a single lightbulb is lit.”
