The anticipated cost for building the Sizewell C nuclear power station in Suffolk could climb to nearly £40 billion, sources involved in discussions regarding the project revealed. This figure doubles the previous estimate of £20 billion provided by EDF, the developer, and the UK government in 2020, reflecting the rising construction costs and delays seen at the related Hinkley Point C site.
This increased estimate raises critical questions about the government’s plans to revive nuclear power amidst current financial strains and public concerns over the cost of living. Once operational, Sizewell C is expected to generate low-carbon electricity for around six million homes for 60 years, according to EDF.
The Treasury is set to determine whether to proceed with Sizewell C during this year’s multi-year spending review. Initially backed by the UK government and EDF, efforts to attract additional investors have been progressing slower than expected.
Officials from the Department for Energy Security and Net Zero stated that they could not disclose the current estimated cost of the project, citing commercial sensitivity. However, reliable industry sources suggest that by 2025, the total cost for constructing Sizewell C could be approximately £40 billion.
To date, the government has already committed £3.7 billion to the project but has postponed a final investment decision that was expected by the end of 2024 until spring 2025. There are concerns that this timeline could extend further into the year.
Possible investors include Centrica, Schroders Greencoat, Emirates Nuclear Energy Corporation, and Amber Infrastructure Group. Recent reports indicate that negotiations with private investors are ongoing.
Alison Downes, the executive director of Stop Sizewell C, has called for the government to be transparent about the project’s total cost, as households will likely contribute to its funding through energy bill levies. She described the lack of disclosure surrounding Sizewell C as inexcusable.
Dale Vince, founder of the green energy firm Ecotricity, has also expressed concerns, warning that financing Sizewell C could lead to increased bills for consumers even before any electricity is produced. He argues that nuclear power is too costly, slow to develop, and difficult to manage once decommissioned.
Nuclear energy currently accounts for approximately 14% of the UK’s electricity supply, with experts emphasizing its importance in achieving net-zero carbon emissions by 2050. Pressure mounts as most of the country’s aging nuclear plants are slated to close by March 2030, unless life extensions are successfully implemented.
At present, only Hinkley Point C is actively under construction in the UK; however, this project has faced considerable overruns and delays, now projected to generate power in 2029 at the earliest, with costs reaching up to £46 billion, far exceeding its initial forecast.
Sizewell C plans to utilize the same European Pressurized Water reactor technology as Hinkley Point C, with EDF asserting that lessons learned from previous projects will lead to reduced costs for Sizewell C. It is also designed to be financed through a regulated asset base model, enabling developers to receive funding during construction through consumer bills, rather than waiting until the plant is finished.
Despite these plans, there remains skepticism within the government about how much less expensive Sizewell C can be compared to Hinkley Point C. The project has also faced setbacks due to the recent resignation of Rob Holden as chair of Sizewell C Limited for health reasons. A spokesperson from the government department stated that they do not acknowledge the £40 billion estimate as a valid figure, asserting that the project is designed to lower electricity system costs and enhance the supply of reliable, domestically produced power while encouraging substantial nationwide investment.