Government bill for Sizewell C nuclear power plant passes £1bn mark
Government spending on the proposed nuclear power plant Sizewell C crossed the billion pound threshold today after the government committed more funds to the project.
Ministers today allocated an additional £341m towards the project on top of the government’s £870m stake, taking overall spending commitments to £1.21bn.
The extra money will help prepare the site for construction, such as in procuring key components from the project’s supply chain, and expanding its workforce.
It would see activity ramp up at the Suffolk site, including constructing training facilities for 1500 apprenticeships, further development of the plant’s engineering design, and direct community investments ahead of work starting.
The government hopes the funds will drive Sizewell C’s operator French energy giant EDF towards reaching a final investment decision on the 3.2GW nuclear project by the end of this parliament – with an election widely expected in late 2024.
So far, it has not made any announcements of further private investment in Sizewell C amid reports of snubs from British pension and investment groups.
Downing Street also wants to build momentum future for nuclear projects across the country, following the eventual completion of the much-delayed Hinkley Point C.
Hinkley Point C is set to be operational in 2028 and cost £33bn, coming in five years overdue and £10bn over budget.
The UK’s energy security strategy is targeting a ramp up of nuclear energy generation from 6.9GW to 24GW over the next three decades, raising its role in the electricity mix from 15 to 25 per cent.
The £341m funding pledge for Sizewell C follows a £170m announcement last month, and is the latest spending commitment in a wider collective £1.7bn financial package for nuclear power announced last year.
Julia Pyke, joint managing director for Sizewell C, said: “This is great news and puts us in an even stronger position to start full construction. It will also allow us to implement several community schemes over the next few months.
“We want people living near Sizewell C to see the benefits of the project as soon as possible and we’re looking forward to getting started on a range of proposals which will bring real improvements to the area well before the main construction gets underway.”
Tom Greatrex, chief executive of the Nuclear Industry Association, added: “The station will generate enough clean power for six million homes from a quarter of square mile of land and create thousands of skilled jobs right across the country. It should mark the start of a new era for nuclear energy in the UK as we re-establish ourselves as a major force.”