Britain announces $19 bn nuclear project

LONDON: On Tuesday, the government announced that Britain will allocate 14.2 billion pounds ($19.25 billion) for the construction of the Sizewell C nuclear facility in southeast England, as part of a broader spending review that will outline its priorities for the upcoming four years. Britain aims to construct new nuclear facilities to replace its outdated units, enhancing its energy security and achieving climate objectives. The Sizewell C facility in Suffolk is anticipated to generate approximately 10,000 jobs at the height of construction and provide sufficient electricity to supply roughly 6 million residences once completed.

"According to Britain's energy minister Ed Miliband, new nuclear power is essential for achieving a golden age of clean energy abundance, as it is the only means to safeguard household finances, regain control over our energy, and address the climate crisis." Britain has been attempting to attract new investors for the project, yet Tuesday's announcement made no reference to any additional parties. The government has not disclosed the total expected cost of the project or provided a completion date. Sizewell is anticipated to adopt a regulated-asset-base (RAB) funding model, which means that firms constructing new plants will receive payment during the building stage, reducing their development risk and enabling them to obtain more affordable financing. 

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Opponents of RAB argue it will make taxpayers responsible for any construction cost overruns and delays, thereby increasing energy bills when numerous individuals are already facing difficulties. It would be merely the second new nuclear facility constructed in Britain in over twenty years, following the French state-owned EDF's Hinkley Point C, which has encountered multiple delays and budget overruns and is now projected to begin operations in 2029, with a cost estimated between 31 and 34 billion pounds at 2015 values.

Simone Rossi, the CEO of EDF in the UK, praised the British government's move to proceed with Sizewell C, stating: "This also reflects a vote of confidence in Hinkley Point C, which has revitalised the UK nuclear sector and developed the expertise and skills that will aid Sizewell C." Sizewell C started as an EDF initiative but is now primarily owned by the British government, with EDF holding a minority stake. At the end of December, the UK government's ownership was 83.8 per cent while EDF's was 16.2 per cent, as indicated by EDF's financial results in February, with a decrease in EDF's stake anticipated after Tuesday's announcement. In December, the project's developer informed Reuters that five investors participated in the bidding process. 

($1 = 0.7378 GBP)