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The new Sizewell C nuclear power plant is expected to win the final go-ahead during the Anglo-France summit in London next month. The UK minister is heading to secure billions of investments from the private sector.
The UK government, which owns the Sizewell C project alongside the French state energy company EDF, wants to begin construction at the Suffolk site.
Finance Minister Darren Jones told the Financial Times earlier this year that Sizewell C’s final investment decision, which shareholders will officially commit to investments, will be a “expense review” on June 11th.
Ministers are expected to reaffirm the government’s intention to invest in Sizewell during or around spending reviews, according to people close to the situation, and details about how much they will be allocated in the support of taxpayers on the project.
However, those close to the UK-France consultations say the final go-ahead is not expected until the announcement was made by Kiel Prime Minister Stage and French President Emmanuel Macron during the Franco-British Summit in London from July 8th to July 10th.
By then, the government and the EDF will be able to take final bids from several private investors who have been given a deadline in late June and proceed with a formal final investment decision.
Groups that will bid on Sizewell’s stock include Rothesay, an insurance company that is supported by people close to The Calks, including Singapore Infrastructure Fund GIC, Canada Pension Fund CDPQ, Amber Infrastructure Partners, Brookfield Asset Management, Pension Fund USS, Schroeders Greencote and Equitics.
British Gas owner Centrica has also confirmed that investing in the project is in discussion.
Chris O’Shea, CEO of Centrica, told FT last week, “We want to get a sensible cash injection profile that will likely cost money in terms of reasonable returns, overruns in terms of costs and schedules, and we want to get a smart cash injection profile that will likely cost you money over time.
Potential investors said the terms were “generous.” Another potential investor who refused to be appointed said the government “got a long way to make it attractive.”
However, the project is controversial given that it will be paid by a higher energy bill under construction.
“Private investors who boarded the 11th hour would have earned the bribe on generous terms at the expense of consumers,” said Alison Downes of the Stop Sizewell C campaign.
Sizewell’s management rejected the industry’s claim that the final cost could ultimately be close to £400 billion, but refused to provide its own estimate.
Sizewell C is set to be the only newer nuclear power plant built in the UK generation, following Hinkley Point C, which is built in Somerset but is significantly behind and far beyond the budget.
EDF has been trying to remove the Sizewell C from the ground for years. The efforts were even more complicated when the UK government expelled China Soto Nuclear Co., Ltd. in November 2022 for security reasons.
Sizewell C was intended to obtain an investment sign-off in the second half of 2024, but the project’s timescale was slipped. In 2022, the UK stated that it would directly co-invest with the EDF in the project, steadily increasing its ownership of the project.
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As of December 31, the UK government’s interest was 84% compared to 16% of the EDF. Those familiar with the situation said the EDF had further down the stock.
Schroders Greencoat, Brookfield, GIC, Amber, Rothesay, CDPQ, and Equitix declined to comment. A government spokesman said he had not commented on the speculation.
EDF declined to comment. USS did not respond to requests for response at the time of publication.
