Government plans to take stake in Sizewell C plant in nuclear push
The government plans to snap up a 20 per cent stake in a major new nuclear plant in Suffolk as it scrambles to boost the country’s energy security amid soaring energy prices and war in Ukraine.
French energy giant EDF is also expected to take a 20 per cent chunk of the £20bn plant and ministers are hoping that remaining 60 per cent will tempt in infrastructure investors and pension funds, the BBC reported.
New legislation allowing construction and financing costs for Sizewell C to be added to customer bills are due for a second reading in the House of Commons next month.
The bill for construction is also set to rise as global inflationary pressures affect prices of the raw materials and energy required for the project.
Nuclear industry insiders have predicted that recent changes to EU-era Solvency II legislation could provide the project with a boost however, as insurance giants will soon be able to pump cash into long-term infrastructure projects after the rules were scrapped.
The plans from the Government come as it looks to rapidly bolster the country’s nuclear energy capabilities after Russia’s invasion of Ukraine and western sanctions caused energy prices to surge on top of an already looming cost-of-living crisis.
Boris Johnson is expected to publish his energy security strategy this week, with the Sizewell C plant set to play a key part alongside solar and wind power and plans to stimulate investment into UK oil and gas fields.
Sizewell C has been hit with delays however, after Business secretary Kwasi Kwarteng pushed back a deadline for a decision on a new nuclear reactor after illness in the team tasked with assessing the plans set back the timelines.
The plans from government to fund the plant have also drawn the ire of some campaigners.
Campaign group Stop Sizewell C said: “We are appalled the government plans to throw billions of pounds in taxpayers’ money at Sizewell C and hit households with a nuclear tax on their bills when renewable solutions, insulation, efficiency and energy storage will achieve energy security faster, more cheaply and with much less risk.”