The estimated cost of building the Sizewell C nuclear power plant has seen a substantial increase, with recent reports suggesting figures between £38 billion and £40 billion, effectively doubling the original £20 billion estimate from 2020. This escalation is attributed to rising construction charges and cost overruns experienced by EDF's Hinkley Point C project.
Several entities are involved in funding Sizewell C. The UK government's stake has notably increased, with some reports indicating an 83.8% ownership by the end of 2024, up from 76.1%. Other investors include La Caisse (20%), Centrica (15%), EDF (12.5%), and Amber Infrastructure (7.6%). The project will be funded through a mix of equity and debt, with £8.8 billion in equity from investors and £36.6 billion in debt from the National Wealth Fund, bringing the total financial commitment to over £45 billion, including a contingency buffer.
The rising costs and shifting ownership structure have raised concerns among critics. Stop Sizewell C executive director Alison Downes highlighted that the project relies heavily on public funds, with taxpayers bearing the brunt of potential cost overruns. An estimated £1 per month levy on household energy bills for a decade is expected to help fund interest payments during the construction phase. EDF's stake has decreased, and there are questions about its continued financial commitment to the project, especially given its decision not to build similar reactor designs in France.
Despite the significant financial commitments and concerns, the project is moving forward. Contracts worth £2.5 billion have already been signed for construction-related costs, even though main construction has yet to commence. The Final Investment Decision (FID) has been delayed multiple times, with the latest expectation for it to be announced during an Anglo-French summit. The plant, once operational in the mid-to-late 2030s, is projected to generate 3.2 GW of electricity, sufficient for 6 million homes, and could potentially reduce home energy bills by £2 billion.
