2 days ago
UK Invests £14 Billion in Nuclear Revival
A decisive £14.2 billion funding package has been confirmed to propel the construction of the Sizewell C nuclear power station and to seed the development of the country's first small modular reactor fleet. The government asserts this marks a pivotal moment in reshaping the national energy landscape, targeting energy security, net‑zero goals, and economic growth through job creation and industrial benefits.
Energy secretary Ed Miliband described the commitment as heralding a 'golden age of nuclear', driven by the need to break free from volatile fossil‑fuel dependencies and rapidly rising electricity demand projected for mid‑century. The financing will facilitate two French-designed EPR reactors at Sizewell C in Suffolk—expected to supply electricity for approximately six million households—and support a pioneering SMR programme by Rolls‑Royce SMR, designed to generate up to 1.5 GW across multiple sites.
The Sizewell C project has been under consideration since 2010, and the latest capital injection resolves enduring uncertainties surrounding its fate. State funding of £14.2 billion, alongside previous public commitments, brings total taxpayer investment to nearly £17.8 billion. EDF holds a 16.2% share in the project, with government ownership at 83.8% as of December—which is likely to shift over time.
ADVERTISEMENT
At the height of construction, Sizewell C is expected to employ around 10,000 people and create 1,500 apprenticeship roles. Contracts totalling £330 million have already been awarded locally, with forecasts indicating up to 70% of future contracts going to UK‑based suppliers, encompassing over 3,500 domestic firms.
The SMR competition concluded with Rolls‑Royce SMR chosen as the preferred builder after two years of evaluation against rivals Holtec and GE Hitachi. HM Treasury has pledged £2.5 billion for SMR development over five years, and government agency Great British Nuclear anticipates deploying three Rolls‑Royce reactors, generating around 3 GW and supporting 3,000 jobs at peak construction.
Rolls‑Royce SMR emphasises its reactors will be factory‑built pressurised water designs intended to reduce cost, complexity, and delivery times, with grid connection anticipated in the mid‑2030s. Chief executive Chris Cholerton hailed the decision as 'a milestone achievement' for domestic growth and high‑skilled jobs.
Critics caution that such megaprojects often encounter cost overruns and delays—Hinkley Point C being cited as a cautionary precedent. Detractors warn that the Sizewell C cost may escalate to £40 billion and that consumer electricity bills may increase by approximately £1 monthly to fund the investment recovery. Alison Downes of Stop Sizewell C questioned whether full costs have been disclosed and argued the project risks burdening taxpayers and households.
The government contends it has learned from Hinkley by establishing a new regulatory and commercial framework intended to align shareholder incentives with schedule and budget adherence. Ofgem will act as economic regulator to safeguard consumer interests.
Complementary investments include £2.5 billion in fusion energy research over five years; £6 billion towards the submarine industrial base, and subsequent investments in advanced fuel infrastructure aimed at reducing reliance on non‑domestic nuclear fuel sources.
EDF's UK CEO Simone Rossi welcomed the funding decision as an affirmation of Hinkley Point C's role in revitalising Britain's nuclear expertise and capacity. Industry leaders such as Tom Greatrex of the Nuclear Industry Association view the integrated Sizewell C and SMR strategy as a crucial industrial and export opportunity for British nuclear manufacturing.
