The Sizewell C Development Expenditure (Devex) Subsidy Scheme has been launched, aiming to support development of Sizewell C up to the point of a final investment decision (FID).
The Department for Energy Security and Net Zero (DESNZ) published the details of the new subsidy scheme on 30 August. The Devex Scheme will provide the government with more flexibility to cover development expenditure costs and allow up to £5.5 billion in support.
The government has already spent £2.5 billion on the 3.2GW nuclear power project, dubbed SZC, which is being developed with the UK subsidiary of French state-owned energy company EDF.
This scheme is in addition to, and separate from, the existing SZC Investment Funding Scheme which was created when the government first invested in the project: in late 2022, the UK government confirmed a £700 million stake in the plant, the “first state backing of a nuclear project in over 30 years in the UK”.
SZC is set to be located on the east coast of Suffolk, adjacent to the existing Sizewell B plant and decommissioned Sizewell A. The plant’s design is a near replica of the UK’s only under construction nuclear plant, EDF’s Hinkley Point C, deploying the EPR design adapted for the UK.
The nuclear plant has had a strong start to 2024, entering the construction phase after securing a development consent order (DCO) on 15 January, which triggered a £250 million funding package for local community and environment initiatives.
On 23 January, the UK government announced another investment of £1.3 billion into the project, securing its status as majority shareholder in the project, which was a flagship site in the Conservative government’s plans for energy security.
The Office for Nuclear Regulation (ONR) granted the 3.8GW Sizewell C project a nuclear site licence to install and operate a nuclear power station on 8 May, though the licence does not permit the start of nuclear-related construction on the site.
Nuclear energy in the UK
Nuclear energy became a point of contention during the recent election. The Conservative government had pushed the technology during its time in power, establishing Great British Nuclear, a trade body focused on the development of small modular reactors (SMRs).
Labour’s manifesto accused the Conservatives of “dithering” on nuclear power, citing project delays, and promised to ensure the security of the sector getting Hinkley Point C over the line and acknowledging the importance of Sizewell C.
Revelations made so far pertaining to Labour’s Great British Energy company have included a commitment to work with GB Nuclear, raising some eyebrows. Alethea Warrington, senior campaigner at climate charity Possible, called it “worrying”, suggesting that the focus should be on technologies that we know have the capability to deliver clean power – solar and wind.
The Green Party manifesto echoed the idea that efforts should be diverted away from nuclear until more progress has been made towards net zero. Indeed, the amounts earmarked for clean energy generation projects over the course of parliament, £8.2 million, pales in significance when compared to spending on Sizewell C.
SMRs have also experienced an uptick in recent months. SMRs are nuclear reactors with a capacity of up to 300MW per modular unit (about a third of the generating capacity of a traditional nuclear reactor).
The technology answers some of the criticism levelled against the nuclear power sector, being faster and cheaper to get up and generating. The modular units mean systems can be factory-assembled and transported as a unit to where they are to be installed.
