The National Wealth Fund, the government’s principal investor and policy bank, will provide a term loan of up to £36.6bn to finance the construction of Sizewell C nuclear power station, strengthening the UK’s energy security through the provision of reliable, low carbon energy to households across the country.1

HM Treasury is providing the NWF with additional financial capacity to facilitate its lending to Sizewell C, ensuring that its existing £27.8bn capacity will continue to be invested in sectors across its mandate to support the government's growth and clean energy missions.

The loan provided by the NWF to Sizewell C Co. will sit alongside £5bn of proposed lending guaranteed by the French export credit agency, Bpifrance Assurance Export. Taken together, this will form the majority of Sizewell C’s debt funding requirement during the construction of the project to the point operations commence. By acting as lender, the Government is benefiting from the NWF’s operationally independent infrastructure finance expertise.

This comes alongside confirmation from the Government today that it will take an initial 44.9% stake to become the single biggest equity shareholder in the project alongside EDF, Centrica, Amber Infrastructure Group and La Caisse.

Sizewell C will see the construction and operation of a new twin reactor nuclear power facility close to the existing Sizewell B facility on the Suffolk coast, deploying two European Pressurised Reactors (EPRs) with total planned 3.2GW capacity. The project’s construction will benefit from efficiencies gained through replicating many aspects of Hinkley Point C’s design and can draw on the existing common supply chain and expertise shared with its sister site.

Sizewell C is a key element of UK Government’s Clean Power 2030 ambitions, with new nuclear power playing an important role in helping the UK achieve greater energy security. Once complete, Sizewell C will produce enough electricity to power around six million homes, providing low-cost, low-carbon electricity that will strengthen the UK’s domestic energy production and provide greater energy system stability that complements the wider renewable energy rollout.

The construction of Sizewell C will also deliver significant regional economic benefits to the area, supporting an estimated 10,000 jobs during the peak construction phase and thousands more in the nationwide supply chain. 

Chancellor of the Exchequer, Rachel Reeves, said:

La Caisse, Centrica and Amber’s multi-billion pound investment is a powerful endorsement of the UK as the best place to do business and as a global hub for nuclear energy. Delivering next generation, publicly-owned clean power is vital to our energy security and growth, which is why we backed Sizewell C. This investment will create thousands of good quality jobs and boost the local economy as we deliver on our Plan for Change.

Energy Secretary Ed Miliband said: 

It is time to do big things and build big projects in this country again- and today we announce an investment that will provide clean, homegrown power to millions of homes for generations to come.

This government is making the investment needed to deliver a new golden age of nuclear, so we can end delays and free us from the ravages of the global fossil fuel markets to bring bills down for good.

John Flint, National Wealth Fund CEO, said: 

Nuclear energy is a key component on the path to deliver the Government’s growth and clean energy missions, and our financing for Sizewell C will help provide decades of clean, reliable electricity for millions of homes across the country. We have a critical role to play in solving financing problems across a broad waterfront of relevant sectors and Treasury has recognised that today by providing the NWF with additional capital required to enable our lending to Sizewell C. As the government’s flagship investor and policy bank, it is a privilege to be able to play such a significant role in a project of such national importance.

Julia Pyke and Nigel Cann, Joint Managing Directors of Sizewell C, said: 

We're delighted to welcome new investors alongside Government and EDF who, like our suppliers, have strong incentives to keep costs under control and ensure we deliver Sizewell C successfully for consumers and taxpayers.

By investing in Sizewell C, they are laying the foundations for a more secure, cleaner and more affordable energy system. Because 70% of our construction spend will be in the UK, with a £4.4bn commitment to the east of England, they will also help to create thousands of great jobs and new opportunities for people and businesses up and down the country.

We are determined to deliver this major infrastructure differently, and to make sure this is a project Britain can be proud of.

END

Notes to editors:

  • 1NWF lending is subject to contract and the successful completion of final due diligence.
  • The National Wealth Fund will act as the provider of the HMG loan for this project, representing one component part of a funding model that spreads the estimated total cost of the project between consumers, taxpayers and private investors.
  • The NWF’s term loan of up to £36.6bn relates solely to the debt financing for construction and is based on its maximum envisaged debt exposure under the Higher Regulatory Threshold (HRT) - effectively, the most it is expected to lend at current prices.
  • It is likely that NWF would not be exposed to the full amount of its provision under the HRT, meaning its total debt exposure is likely to be less than the nominal maximum that it has provided for.
  • Further information on the wider financing package can be found through the Government’s announcement here: https://www.gov.uk/government/news/sizewell-c-gets-green-light-with-final-investment-decision 

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