The UK Government has confirmed a “historic” £700 million stake in the Sizewell C nuclear project to boost its energy security.
Being developed by EDF Energy, the 3.2GW nuclear plant situated in Suffolk has been touted as a crucial asset in supporting the UK’s goal of securing energy independence. This has been amplified in light of the Ukraine-Russia conflict.
The government stated this historic investment in a nuclear project marks the “first state backing of a nuclear project in over 30 years in the UK”. With this, Sizewell C will be positioned at the “heart of the new blueprint to Britain’s energy sovereignty” with goals to establish 24GW nuclear generation by 2050.
The government’s stance on the Sizewell C project had been called into question recently with the BBC having reported a “government official disclosed that every major project was under review including Sizewell C”.
At the time, a government spokesperson told Current± that its position on the Sizewell C project “had not changed” and the confirmation of this £700 million stake in the nuclear project reaffirms its commitment in developing nuclear projects.
This funding also builds on the £100 million financial aid provided to Sizewell C by the government in January 2022.
“Global gas prices are at record highs, caused by Putin’s illegal march on Ukraine. We need more clean, affordable power generated within our borders – British energy for British homes” said Grant Shapps, Business and Energy Secretary for the UK Government.
“Today’s historic deal giving government backing to Sizewell C’s development is crucial to this, moving us towards greater energy independence and away from the risks that a reliance on volatile global energy markets for our supply comes with.
“This is at the heart of a package of measures that – together with the new Great British Nuclear and powers of the Energy Security Bill – will ensure secure supply for now, and for generations to come.”
Nuclear energy could be a crucial generation source which could help the UK gain energy independence. Despite its controversy, it can produce vast quantities of low carbon energy and thus is a vital technology to enrich the UK energy system.
Despite its promising aspects, nuclear plants take years to develop and thus many indicate that the benefits from investing in the creation of nuclear plants will not be of benefit to the short-term future.
“Today’s investment in Sizewell C represents the biggest step on our journey to energy independence – the first state backing for a nuclear project in over 30 years. Once complete, this mega project will power millions of homes with clean, affordable, home-grown energy for decades to come,” said Chancellor of the Exchequer Jeremy Hunt.
“Together with our drive to improve the nation’s energy efficiency, this package will help to permanently bring down energy bills and stop Britain being at the mercy of global gas prices beyond our control.”
There is only one new nuclear plant in the UK currently under construction, EDF’s Hinkley Point C. At the site in Somerset, the French energy giant is constructing two reactors that will have a capacity of 3,260MWe when complete. It has been hit by numerous delays and cost increases however, with COVID-19 having strained the project.
Chris Lewis, leader of EY Global’s infrastructure team believes that there is now an opportunity for the UK Government to develop further nuclear sites in the UK with the “Sizewell C project offering real value for money amid the energy crisis”.
“While today’s announcement is extremely positive news for the UK’s energy sector, the government should capitalise on this momentum to accelerate the build of more new nuclear plants following the recent closures of the advanced gas cooled reactors at Dungeness B, Hinkley Point B and Hunterston,” Lewis said.
“The new nuclear regulated asset base provides new nuclear companies with stable income, which will attract low cost private finance and reduce the costs of nuclear power. This is a start of a new era for nuclear energy in the UK.”
