Government shows confidence in Sizewell C with £100m funding agreement
The Government has announced £100m to support the continued development of Sizewell C and to help it attract private investors.
The funding, in the form of an option fee, will be invested by EDF to help mature the project and bring it to a financial investment decision. EDF has been in discussions with the Government about Sizewell C since last year.
The funding announcement was made as BEIS Secretary of State Kwasi Kwarteng MP visited the Sizewell C site in January and met directors of EDF and some of the workforce at Sizewell B.
Mr Kwarteng, said:
“In light of high global gas prices, we need to ensure Britain’s future energy supply is bolstered by reliable, affordable, low carbon power that is generated in this country. New nuclear is not only an important part of our plans to ensure greater energy independence, but to create high-quality jobs and drive economic growth.
The funding announced today will further support the development of Sizewell C during this important phase of negotiations as we seek to maximise investor confidence in this nationally significant project.”
Simone Rossi, CEO of EDF Energy said:
“We’re very pleased that the Government is showing its confidence in Sizewell C which, if approved, will lower energy costs for consumers and help to insulate the UK from global gas prices. Together with our own investment, these funds will allow us to continue to move the project towards a financial investment decision.
Sizewell C will benefit from being a near replica of Hinkley Point C in Somerset which is more than five years into construction and making great progress in the challenging context of the Covid pandemic.
Sizewell C will provide a huge economic boost to East Suffolk where it already enjoys the support of most local people. It will also bring new opportunities for thousands of nuclear supply chain companies up and down the country.”
Legislation currently going through parliament would allow a wide range of investors to finance new nuclear projects and so bring down costs to consumers. The Nuclear Energy (Financing) Bill has received strong support from MPs who voted in favour of it by a big majority (459 to 53).