Energy secretary sees ‘golden age’ for nuclear in UK
The UK government has announced a £14.2bn (€16.85bn, $19.26bn) investment in the Sizewell C nuclear power station on Tuesday (10 June), in a major move to boost the country’s clean energy supply, cut bills, and create thousands of new jobs.
Chancellor of the exchequer Rachel Reeves will confirm the funding later today as part of the upcoming Spending Review*, a multi-year fiscal planning process led by the treasury, ending over a decade of uncertainty surrounding the Suffolk-based project.
A final approval for Sizewell C would mark the end of a 15-year bid by successive governments to secure investment for the planned two 1,630-MW units, to be supplied by France’s state power company EDF, since the site was first earmarked for new nuclear development in 2010.
The government says the investment will create 10,000 jobs, including 1,500 apprenticeships, and support thousands more across the UK supply chain.
"We are creating thousands of jobs, kickstarting economic growth and putting more money in people’s pockets," Reeves said.
The announcement is central to what energy secretary Ed Miliband has described as a “golden age” of nuclear power in the UK, aimed at strengthening the nation’s energy security and cutting reliance on fossil fuel imports.
“We need new nuclear to deliver a golden age of clean energy abundance, because that is the only way to protect family finances, take back control of our energy, and tackle the climate crisis,” said Miliband.
“We will not accept the status quo of failing to invest in the future and energy insecurity for our country.”
The government says it has already signed £330m in contracts with local firms, with about 70% of future work expected to go to 3,500 UK suppliers.
The investment comes alongside broader efforts to revive the UK’s nuclear industry, including support for one of Europe’s first small modular reactor (SMR) programmes and £2.5bn in fusion energy research, said a government statement.
The Sizewell C project, SMRs, and Hinkley Point C are expected to deliver more new nuclear capacity by the 2030s than the past 50 years combined, said the statement.
As part of its wider industrial strategy, the government has also pledged over £6bn for the nuclear submarine industrial base and is exploring private sector-led advanced nuclear projects, including a £300m investment to develop a non-Russian supply of advanced reactor fuel.
The government said it is committed to working with trade unions such as the GMB, Unite, and Prospect, all long-time advocates of nuclear development.
Press reports earlier this month said potential investors in the Sizewell C project include Schroders Greencoat, Equitix, the Canadian pension fund CDPQ, Amber Infrastructure Partners, Brookfield Asset Management, the UK pension fund USS and the insurer Rothesay, backed by the Singaporean infrastructure fund GIC.
Sizewell C, which is expected to cost about £20bn according to the latest available EDF estimates, had already secured £6.4bn of government funding to support its development to date, of which £2.5bn was granted by the Conservative government under former prime minister Rishi Sunak and a further £3.9bn has come from the current Labour administration.
It remains unclear whether the funding already pledged is part of the £14.2bn announced today.
A report by the Financial Times quoting unnamed sources in early January 2025 said the price tag for Sizewell C could go as high £40bn.
The two-unit EPR project at Hinkley Point C which is currently under construction in Somerset is estimated to cost as much as £46bn, but the project got caught up in delays, ownership disputes, and the Covid-19 pandemic.
The UK government said it is securing a stronger commercial and regulatory regime for Sizewell C than for previous projects in order to ensure the project stays to time and budget. This is expected to includes a funding model that incentivises shareholders to keep down costs, with UK energy regulator Ofgem acting as an economic regulator to protect consumer interests.
The government wants to maintain a significant shareholding in the project to drive delivery, a statement said.
*Chancellor Rachel Reeves’ Spending Review is expected to be released on Wednesday 11 June
