Sizewell C Approved With £38bn Investment Deal Signed

The Government has confirmed the final investment decision for the Sizewell C nuclear power station in Suffolk, with construction costs projected at £38 billion. Energy Secretary Ed Miliband signed off the agreement this week, enabling the project to move into full delivery.

The Department for Energy Security & Net Zero (DESNZ) stated that the Government will become the largest equity investor, holding a 44.9 per cent stake. Other backers include Canadian fund La Caisse (20 per cent), Centrica (15 per cent), Amber Infrastructure (7.6 per cent), and EDF (12.5 per cent), which reduced its share from earlier expectations.

The total investment combines equity and debt finance. The National Wealth Fund is providing up to £36.6 billion in debt, creating a financial structure designed to absorb potential cost overruns and protect delivery.

This final deal brings to an end over a decade of planning since the site was first earmarked in 2010. It also confirms a capital cost nearly double the £20 billion estimate issued by EDF in 2019. The Government noted that Sizewell C is expected to be around 20 per cent cheaper than Hinkley Point C, currently under construction in Somerset.

During the construction phase, an average of £1 per month will be added to household energy bills. Once operational, Sizewell C is forecast to power six million homes and generate savings of up to £2 billion a year across the UK’s low-carbon electricity system. The number of high-quality jobs created is expected to reach 10,000.

Speaking on the investment, Ed Miliband said the project reflects a renewed ambition to deliver large-scale infrastructure and secure domestic energy supply. Chancellor Rachel Reeves emphasised that the investment would reduce reliance on international energy markets and provide a financial return to taxpayers through public ownership.

Centrica chief executive Chris O’Shea described the decision as an investment in energy independence and net zero, highlighting the wider industrial and employment benefits across the UK.