LONDON, July 22 — The UK government has granted final investment approval for the £38 billion Sizewell C nuclear power station, located on England’s Suffolk coast, in a landmark decision aimed at strengthening the nation’s low‑carbon energy supply and boosting energy security.
Under the agreement, the government will hold a 44.9% stake in the project. Other key investors include a Canadian pension fund (20%), Centrica (15%), Amber Infrastructure (7.6%), and EDF, which retains a 12.5% share. Centrica has already committed £1.3 billion to the construction phase.
Sizewell C, based on the European pressurised water reactor design, will generate approximately 3.2 GW of clean electricity—enough to power around six million homes. Once operational, it is expected to contribute an estimated £2 billion annually in system cost savings.
The project will utilise a regulated asset base (RAB) financing model, with about 25% funded through equity and the remainder through debt, mainly sourced from the National Wealth Fund. During the construction period, household energy bills are expected to rise slightly, by around £1 per month. The agreement includes cost-control mechanisms: if project costs exceed £47 billion, the government will cover the excess, while any savings below £40 billion will be shared as bonuses to investors.
Construction is scheduled to begin later this year, with completion targeted for around 2035. It will be the first new nuclear power plant built in the UK since Sizewell B in 1995. At its peak, the project is expected to create approximately 10,000 construction jobs and 1,500 apprenticeship opportunities, with 70% of procurement anticipated to come from UK-based suppliers.
Energy Secretary Ed Miliband described Sizewell C as a critical investment that will usher in a “new golden age of nuclear,” reinforcing the government’s long-term strategy to grow the clean energy sector, drive economic development, and strengthen energy resilience.
With private sector participation and public backing, Sizewell C is seen as a cornerstone in the UK’s effort to replace its ageing nuclear fleet, meet future electricity demand, and advance its net-zero emissions goals—while maintaining investor confidence and protecting consumers in the long run.
