The UK government said it would invest 14.2 billion pounds in the construction of the Sizewell C nuclear power plant as it seeks to boost energy security. The amount equals around $19.3 billion.
“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,” energy minister Ed Miliband said in a statement, as quoted by Reuters.
Sizewell C is a 3.2-GW nuclear power facility that is being developed by French EDF. The project was first announced in 2020, with a price tag of around $25 billion. Since then, however, the price has swollen twofold, with the developer citing raw material inflation. The UK government originally agreed to shoulder 40% of the total cost, along with EDF, with the rest coming from private investors. That original government share stood at 6.4 billion pounds or $8.7 billion. Reuters noted that the official statement on the new cash injection did not clarify if the new sum included the original investment.
There are currently two nuclear power plants under construction in the UK. Both, however, have suffered delays and massive cost overruns, drawing strong public criticism. Hinkley Point C, the second project, began construction over 10 years ago and is still several years away from completion. The delay would also increase the final tab for the power plant.
According to EDF, Sizewell C is expected to meet 7% of the UK’s energy needs for at least 60 years, supplying electricity to 6 million homes. Hinkley Point C, also an EDF project, could cover another 7% of Britain’s electricity demand. Its price tag was recently updated to some $58.4 billion, with the start date pushed back by three to four years, to 2031.
By Irina Slav for Oilprice.com
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