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The UK government on Tuesday gave new British nuclear power plant Sizewell C the final go-ahead after reaching a deal with investors, aiming to bolster net zero and energy security goals.<\/p>\n
The government, the largest shareholder in the project, said Sizewell C, in eastern England, will cost around \u00a338 billion ($51 billion) to construct.<\/p>\n
The project will also be funded by Canadian pension fund La Caisse, British Gas owner Centrica, Amber Infrastructure and French energy giant EDF.<\/p>\n
\u201cIt is time to do big things and build big projects in this country again,” Energy Secretary Ed Miliband said in a statement.<\/p>\n
“Today we announce an investment that will provide clean, homegrown power to millions of homes for generations to come,” he added.<\/p>\n
The plant, which has been in financial limbo for over a decade, is not expected to start generating electricity until the 2030s.<\/p>\n
The projected construction cost of \u00a338 billion exceeds previous official estimates of \u00a320 to \u00a330 billion — and campaigners have warned that further cost overruns or delays could impact households.<\/p>\n
– Energy security –<\/p>\n
The final investment decision gives the government a 44.9 percent stake in the project.<\/p>\n
Among the new investors in Sizewell C, La Caisse holds a 20 percent stake, Centrica 15 percent and investment manager Amber Infrastructure an “initial” 7.6 percent.<\/p>\n
EDF announced earlier this month that it will take a 12.5 percent stake in the project — down from 16.2 percent ownership the end of 2024.<\/p>\n
The UK has refocused on shoring up nuclear power since the start of the war in Ukraine, in the name of energy security and faced with a fleet of ageing power stations.<\/p>\n
Prime Minister Keir Starmer’s government has also pledged by 2035 to reduce UK greenhouse gas emissions by 81 percent on 1990 levels, under plans to reach net-zero by 2050.<\/p>\n
The use of nuclear energy as an alternative to fossil fuels is highly controversial, however, with many environmental groups warning about safety risks and the disposal of nuclear waste.<\/p>\n
The plans for Sizewell C have been met with anger by some local residents worried about the impact of the new plant on the town of Leiston in Suffolk.<\/p>\n
Once operational, the project will power around six million homes and create around 10,000 jobs, according to the government.<\/p>\n
Near to Sizewell C is the Sizewell B nuclear power station which is due to close in 2035 — and Sizewell A which is in the process of being decommissioned.<\/p>\n
EDF is also building the Hinkley Point C nuclear power plant in southwestern England, although it has been plagued by delays and rising construction costs.<\/p>\n
The government noted that the construction costs of Sizewell C would be around 20 percent cheaper than Hinkley Point\u00a0C.<\/p>\n
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