The UK government has officially confirmed its commitment to the £38 billion Sizewell C nuclear power station, with significant investment backing from key players including Centrica, EDF, and Canadian fund La Caisse, marking a major milestone in Britain’s drive for energy security and carbon neutrality.
Announced on Tuesday, the government will take a 44.9% stake in the Suffolk-based project, while private investors such as Centrica (owner of British Gas), La Caisse, EDF, and Amber Infrastructure will hold the remaining shares. The long-delayed plant is projected to begin operations by the mid to late 2030s.
Joint Managing Director of Sizewell C, Julia Pyke, acknowledged that previous estimates of £20bn did not account for inflation or project risk, leading to a nearly doubled cost. Still, she emphasized that the plant would ultimately lower household energy bills by an estimated £2 billion per year once operational.
“During the construction phase, it will cost consumers about £1 a month,” Pyke added, describing the additional burden as a “small annual charge” in exchange for long-term savings.
Sizewell C is expected to generate enough electricity to power six million homes and create 10,000 direct jobs, alongside many more in related industries. The government sees the plant as a crucial pillar in its goal to secure clean, homegrown energy and reduce dependency on volatile fossil fuel imports.
Energy Secretary Ed Miliband praised the investment as a return to bold infrastructure development. “It is time to do big things and build big projects in this country again,” he said. “This investment will provide clean power to millions for generations.”
Chancellor Rachel Reeves echoed that sentiment, calling the involvement of global investors a “powerful endorsement” of the UK’s standing as a global hub for nuclear development.
The investment also marks the first nuclear energy project backed by the newly created National Wealth Fund, the UK’s principal investor and policy bank.
Despite the positive outlook, the project faces strong opposition. Alison Downes, director of the campaign group Stop Sizewell C, criticised the funding model, warning that public funds will likely bear the brunt of any cost overruns. “It is astounding that only now, as contracts are being signed, the government has confessed that the cost has nearly doubled,” she said.
Nonetheless, supporters argue that the long-term benefits outweigh the risks. Tom Greatrex, head of the Nuclear Industry Association, called it “money well spent” and highlighted the employment and energy security benefits.
Sizewell C was first identified as a potential site for new nuclear development back in 2009. After over a decade of delays, changing governments, and funding challenges, the plant is now firmly moving ahead as a flagship of Britain’s renewed nuclear ambitions.
