If approved, Sizewell C will be one of the UK’s biggest low carbon infrastructure projects.
It is expected to be funded using the Regulated Asset Base (RAB) model which is a tried and tested arrangement for raising low cost finance for infrastructure. RAB will lower costs for consumers and create a unique opportunity for investors such as pension funds, insurers and other institutional investors.
Legislation to apply RAB funding to UK nuclear has been passed in Parliament with strong support from the two main political parties.
An investment in Sizewell C will be:
1) Secure | Long-term regulated returns
Sizewell C will replicate the design of the Hinkley Point C power station in Somerset, which is now five years into construction, reducing build costs and risk.
Through its 10 to 12-year construction period, and for at least 60 years of operation, Sizewell C will deliver index-linked returns for investors. Funding will be raised through a Regulated Asset Base (RAB) model, which has already been used to finance £200bn of infrastructure assets in the UK. Investors share project risk and costs with consumers, while a Government Support Package will protect investors from remote high impact risks.
2) Supported | Strong political backing for nuclear
Nuclear is central to the Government’s plans to decarbonise the UK economy and reach Net Zero emissions by 2050. The Government has committed to bring one large-scale nuclear project to a financial investment decision in this Parliament and £1.7bn in Government funding has been set aside to achieve this. £100m in development funding has also been provided to Sizewell C by the Government.
3) Sustainable | Net Zero investment
An investment in Sizewell C is an investment in clean energy and our Net Zero future. The recently published EU taxonomy says nuclear can help accelerate the shift towards a ‘climate neutral’ future.
Sizewell C has strong ESG credentials. It is a low-carbon project that will drive socioeconomic impact across the UK, supported by robust regulatory structures.