Sizewell C nuclear power station receives final investment decision

ME Construction

24-07-2025

Energy Sizewell C nuclear power station receives final investment decision
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Some 70% of the value of the construction project is expected to be awarded to British business, according to the Department for Energy Security and Net Zero
Sizewell C, a new nuclear power station under development on the Suffolk coast in England, has received its final investment decision from the British government. The move is said to mark a significant milestone in the UK's energy sector. The decision unlocks the investment in clean, homegrown energy in a generation, paving the way for the delivery of secure, affordable, and low-carbon electricity to the nation.
The UK has not had a new nuclear plant since 1995, and all existing nuclear plants, except for Sizewell B, are expected to be phased out by the early 2030s. This decision is a world-first for the industry, as it also enables financing for British nuclear energy by adopting the Regulated Asset Base model. This model combines public investment and private capital to support the project, said a report.
Once operational, Sizewell C will provide electricity to six million homes for at least 60 years. It is projected to generate electricity system savings of US $2.70bn annually once operational. The project's capital cost is estimated to be around $51.38bn (2024 prices). Around 70% of the project's spend is expected to go to UK companies.
The agreement includes incentives for investors, contractors, and project managers to deliver the project on time and at the lowest possible cost. The figure includes contingencies and excludes potential cost offsets from asset sales or other opportunities. Sizewell C also benefits from the experience gained from its sister plant, Hinkley Point C, where construction of elements of the second unit has been running 50% faster than the first. The lessons learned from Hinkley will be directly applied to Sizewell C.
The government has confirmed its commitment to becoming the single largest equity shareholder in the project, taking an initial 44.9% stake. This means the British people will directly benefit from the government's investment in Sizewell C. The new shareholders include La Caisse with 20%, Centrica with 15%, and Amber Infrastructure with an initial 7.6%. EDF has taken a 12.5% stake in the project, as announced earlier this month.
Julia Pyke, Joint Managing Director of Sizewell C said, 'Sizewell C will cost consumers around $1.35 per month as an average over the duration of construction. Once operational, the project could lead to savings of $2.70bn a year across the electricity system. Our plan is to deliver Sizewell C at a capital cost of around $51.50bn. Our estimate is the result of very detailed scrutiny of costs at Hinkley Point C and long negotiations with our suppliers. It has been subject to third-party peer review and has been scrutinised by investors and lenders and has been subject to extensive due diligence as part of the financing process. A capital cost of $51.50bn represents around 20% saving compared with Hinkley Point C and demonstrates the value of the UK's fleet approach.'
Nigel Cann, Joint Managing Director of Sizewell C added, 'Any infrastructure project of this scale will face risks and potentially disruptive events outside of its control, as well as opportunities to reduce costs. Our supply chain is strongly incentivised to keep costs down and our investors will lose potential revenue if there are overruns.'
Construction is already underway on the site in Suffolk, with over $446mn in contracts signed with local businesses. At its peak, the project will directly support 10,000 jobs with up to 60,000 more in the supply chain, and it will create 1,500 apprenticeships. Sizewell C marks a significant step in building a fleet of large and small nuclear plants across the country, and complements Britain's growing portfolio of renewables and clean energy technologies.