How will Sizewell C be funded?
Sizewell C will be a near replica of Hinkley Point C and this means we can lower construction costs and explore new ways of raising finance.
One option being considered is the Regulated Asset Base (RAB) model which is already widely used for UK infrastructure. If applied to Sizewell C, it would lead to lower financing costs and significant savings for consumers.
The Government consulted on the use of RAB financing for nuclear projects in 2019. Formal negotiations with the Government on financing Sizewell C began in December 2020 and are continuing. The Government announced legislation on financing new nuclear power plants through the RAB model in October 2021.
The Government's recently published Net Zero Strategy said the RAB funding model would be established to fund nuclear projects at a low cost of capital, saving consumers money.
Why the UK needs Sizewell C
The UK has made a binding commitment to reach net-zero carbon emissions by 2050. That means our electricity system won’t be able to rely on polluting fossil fuels as it does today. At the same time, electricity demand is expected to rise as we move to battery-powered transport and adopt cleaner ways to heat our homes. The Committee on Climate Change (CCC) says that to get to net zero the supply of low-carbon electricity needs to quadruple between now and 2050.
While the growing demand for low-carbon electricity will mostly be met by renewables like wind and solar, nuclear electricity will also be a vital component of our future energy mix. The CCC reckons the UK needs around 40% of the low-carbon electricity to be reliable (or “firm”) rather than intermittent. Today, the only proven “firm” and large-scale, low-carbon technology is nuclear.
Sizewell C is the next new nuclear power station being proposed for the UK. Together with Hinkley Point C in Somerset, their 6.4GW of baseload electricity will help provide our homes and businesses with reliable energy for decades to come.
The Regulated Asset Base (RAB)
The Regulated Asset Base (RAB) is not new for Sizewell C and has already been successfully used to finance large infrastructure in the UK like the Thames Tideway Tunnel – London’s “super-sewer” – as well as electricity, gas, telecoms and transport infrastructure.
Read the Government’s consultation on the Regulated Asset Base financing model here
Our own articles on RAB are below
A new way of funding energy projects can lower costs for consumers, says EDF Energy
Politics Home, 24 July 2019
Needed but not at any price – how to lower the cost of nuclear
Politics Home, 28 January 2019
Funding the UK’s low carbon energy future
LinkedIn, 15 October 2019
Here’s the one-sentence case for nuclear power: It’s the only carbon-free energy source that can reliably deliver power day and night, through every season, almost anywhere on earth, that has been proven to work on a large scale.
Green taxonomy and Environmental, Social and Governance (ESG)
We believe nuclear scores highly when it comes to ESG considerations and Sizewell C is arguing for nuclear to be included in the Government’s forthcoming taxonomy on green investments. Our ESG credentials:
In 2021, the European Commission’s Joint Research Council which advises on the EU taxonomy concluded that, “There is no science-based evidence that nuclear energy does more harm to human health or to the environment than other electricity production technologies already included in the EU Taxonomy as activities supporting climate change mitigation." Full report here
See how we are supporting jobs and apprenticeships and supporting the environment
Building on experience from Hinkley Point C
Sizewell C is a near replica of Hinkley Point C which means we’re able to easily take all of the learnings and innovation from that project to build this new power station at a lower cost.
Throughout the construction process at Hinkley Point C we’ve also been able to implement big improvements on the plans even as work continues. Those same improvements have been incorporated into Sizewell C to ensure the end product is even better.
EDF Energy will provide design, technical and engineering support throughout construction and operation. All of these elements combined mean that Sizewell C can be delivered with a high degree of cost certainty and substantial reduction in delivery risk.
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Contact Sizewell C
- Call: FREEPHONE 0800 197 6102 (Weekdays: 9.30am - 5pm. Saturdays: 9am - 12pm)
- Write: FREEPOST SZC CONSULTATION (No stamp or further address required)
- Visit: Sizewell C Information Office, 48-50 High Street, Leiston IP16 4EW (By appointment. Weekdays: 10am - 4pm)
- General query: info@sizewellc.co.uk
- Media team: media@edfenergy.com