EDF investment hailed as ‘vote of confidence in UK’, despite reduced stake
The Prime Minister has hailed investment by French energy giant EDF in the Sizewell C nuclear plant as “a vote of confidence in the UK as an investment destination”, though the company appears to be taking a reduced stake in the major project.
The French state-owned electricity company said it had agreed in principle to invest £1.1bn in the power plant on the Suffolk coastline.
Sir Keir Starmer said the 12.5 per cent stake by the French government-owned company takes the project “a step closer to the benefits it will bring to the British people”, though it is down from EDF’s previously stated ownership stake of 16.2 per cent.
The government pointed to EDF’s annual results for 2024, which stated that upon a final investment decision the company expected to take a share of ownership between 10 per cent and 20 per cent of Sizewell C.
EDF is the first shareholder to announce its final stake in the project, which comes alongside a £14.2bn investment from the UK Government announced at the Spending Review in June.
It comes as French President Emmanuel Macron begins his state visit to the UK on Tuesday, where he is being given a ceremonial welcome by the King and will discuss shared political matters with the Prime Minister.
Other private investors could include British Gas’s owner Centrica, and Canadian investment firm the Brookfield Corporation, the Financial Times (FT) newspaper reported.
The FT also reported EDF has reduced its stake as the French state has tasked it with focusing on building new nuclear projects in France and maintaining the country’s existing nuclear plants.
Further investors will be officially announced at the point the final decision, expected later in the summer.
Full details of the cost will then be set out, Downing Street said.
A No 10 spokesman said the Government has always known that EDF was looking to take a minority stake in Sizewell C’s construction and that the decision is “fully consistent with their previously stated commitment”.
No more dithering on Sizewell C, says Starmer
Welcoming EDF’s announcement, Sir Keir said: “I’ve been clear there will be no more dithering and delay on Sizewell C – and this investment takes us a step closer to the benefits it will bring to the British people.
“Lower energy bills, thousands more jobs and apprenticeships, and better energy security – this is not only a vote of confidence in the UK as an investment destination, it is our Plan for Change in action.”
The power station is expected to support some 10,000 jobs at peak construction, as well as thousands more in the supply chain and will create 1,500 apprenticeships, the government said.
Energy Secretary Ed Miliband said: “Thousands of jobs and clean power for millions of homes are one step closer today as we welcome this investment into Sizewell C, delivering a golden age of new nuclear to protect family finances and boost energy security.
“This agreement is a landmark moment in the UK and France’s long-standing partnership in civil nuclear, and a testament to our countries’ strong relationship.”
Press Association