Sizewell C becomes the first nuclear project in the world financed through private investors under the UK’s Regulated Asset Base model — the same structure used to fund Heathrow Terminal 5 and the Thames Tideway Tunnel.
Construction is estimated to be around 20% cheaper than the near-identical Hinkley Point C project.
The savings will come from using the Hinkley C supply chain and efficiency gains from lessons learned on the delivery.
Construction will now ramp up on the two-reactor plant, which will supply low-carbon power to six million homes for at least 60 years.
Over 10,000 people will work on the project, with 70% of contract value expected to go to UK businesses and 1,500 apprenticeships created.
The RAB model allows regulated revenues during construction, cutting financing costs and consumer bills. Government estimates suggest it will save bill payers £30bn over the project’s life compared with traditional funding models.
Funding deal
The National Wealth Fund will shoulder most of the project’s debt finance, alongside backing from France’s Bpifrance Assurance Export.
The debt raise through the BpifranceAE export credit facility, is backed by 13 banks, alongside a £500m working capital facility.
A separate equity raise in the summer saw the Government take a 44.9% stake, making it the single largest shareholder.
Other backers include Centrica, which is investing £1.3bn for a 15% share, alongside La Caisse (20%), EDF (12.5%) and Amber Infrastructure (7.6%).
The total equity and debt finance made available exceeds the target construction cost to help safeguard taxpayers in case of overruns.
Banks involved: ABN Amro Bank; Banco Bilbao Vizcaya Argentaria (BBVA); Santander CIB; BNP Paribas; Crédit Agricole Corporate and Investment Bank; CaixaBank; Citibank; Crédit Industriel et Commercial (CIC); HSBC Bank; Lloyds Bank; National Westminster Bank; Natixis; Societe Generale
