Latest news with #RegulatedAssetBase
ME Construction
24-07-2025
- Business
- ME Construction
Sizewell C nuclear power station receives final investment decision
Energy Sizewell C nuclear power station receives final investment decision By 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.
Cision Canada
22-07-2025
- Business
- Cision Canada
La Caisse commits to invest in Sizewell C, a critical asset for economic growth and energy security in the UK Français
MONTRÉAL and LONDON, July 22, 2025 /CNW/ - Quebec based global investment group, La Caisse (formerly CDPQ), today announces its commitment to invest up to £1.7 billion (CAD 3.2 billion) in Sizewell C, a 3.2GW nuclear power station located in the East of England. The investment, which represents a 20% stake in the project, will leverage La Caisse's proven track record in delivering large scale infrastructure projects globally and support the UK's transition to clean power and progress to net zero. Once complete, Sizewell C will provide over 60 years of clean, reliable power to the UK grid, helping to boost the UK's economy, strengthen energy security and help reduce reliance on hydrocarbon sources, avoiding 9 million tonnes of carbon emissions annually. The investment will be made alongside the UK Government, experienced operator EDF, British multinational energy and services company Centrica and investment partner Amber Infrastructure. The project is structured under the UK Government's Regulated Asset Base (RAB) model which helps fund large-scale projects by offering predictability to investors while ensuring value for consumers over the long term. "Our commitment to invest in Sizewell C reflects La Caisse's constructive capital approach, working to deliver optimal financial performance for our clients alongside broader economic and societal progress. La Caisse has a strong track record of bringing private sector expertise alongside governments and industrial players to invest in complex, regulated infrastructure where value-for-money for consumers is key. Sizewell C is a positive development for UK consumers, as it is expected to provide long-term reliable baseload power and low carbon energy to more than 6 million homes across the UK, while contributing to the creation of 10,000 new jobs at peak construction and thousands more in the nationwide supply chain. We're proud to support the UK Government in delivering this landmark project, advancing the country's energy security and economic growth ambitions. Our investment demonstrates our confidence in the UK market – our largest destination outside North America – and aligns with our commitment to the energy transition and decarbonization, enabled by our long-term capital and active ownership," said Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at La Caisse. "It is time to do big things and build big projects in this country again – and today we announce an investment that will provide clean, homegrown power to millions of homes for generations to come. This government is making the investment needed to deliver a new golden age of nuclear, so we can end delays and free us from the ravages of the global fossil fuel markets to bring bills down for good," said Secretary of State for Energy Security and Net Zero, Ed Miliband. "We're delighted to welcome La Caisse's investment in Sizewell C. Their decision to take a 20% stake in the project reflects growing international backing for UK nuclear and confidence in Sizewell C. As one of the world's leading institutional investors, La Caisse brings significant experience in sustainable infrastructure and in delivering projects that drive economic growth and long-term value creation. Their involvement reinforces our strong financial base and supports our mission to create tens of thousands of high-quality jobs and 1500 apprenticeships across the country. Sizewell C will boost energy security, cut carbon, and drive regional and national growth for decades to come, and we're proud to have La Caisse on board as part of that journey," said Julia Pyke and Nigel Cann, Joint Managing Directors of Sizewell C. La Caisse is the world's second largest institutional infrastructure investor, currently manages over £20 billion in UK investments and has significant experience in delivering projects that drive economic growth and positive change. La Caisse intends to invest around £8 billion in the UK over the next five years, increasing its asset allocation to the British market by nearly 50 percent. La Caisse has acted as a partner of trust and choice to the UK Government and its business partners for many years and has brought benefits to millions of UK consumers through investments in Eurostar, Heathrow Airport, First Hydro Company and London Array, an offshore wind farm generating 630MW of electricity, enough to power 500,000 UK homes. La Caisse is also deeply committed to sustainable investing and investments supporting climate action. The firm has recently committed to have nearly £220 billion (CAD 400 billion) invested globally by the end of the decade in companies committed to decarbonising their operations as well as in climate solutions. These investments align with La Caisse's commitment to its clients: delivering long-term value while managing risk responsibly. ABOUT LA CAISSE At La Caisse, formerly CDPQ, we have invested for 60 years with a dual mandate: generate optimal long-term returns for our 48 depositors, who represent over 6 million Quebecers, and contribute to Québec's economic development. As a global investment group, we are active in the major financial markets, private equity, infrastructure, real estate and private credit. As at December 31, 2024, La Caisse's net assets totalled CAD 473 billion. For more information, visit or consult our LinkedIn or Instagram pages. For more information
