Sizewell C reaches financial close, clearing way for construction

The Sizewell C nuclear project reached financial close yesterday, paving the way for construction work to begin.

The government signed a final investment decision on £38bn scheme in July, with energy secretary Ed Miliband agreeing a deal with a group of private investors which gave the government a 44.9% stake.

Sizewell C is the first nuclear project to be financed using the regulated asset base model, which funds large public infrastructure projects by allowing investors to earn a guaranteed return on their investment over the life of the asset.

The company responsible for the scheme, which is part-owned by the UK government, has confirmed £5bn of debt has been raised through the BpifranceAE export credit facility and a £500m Working Capital Facility, alongside the National Wealth Fund’s term loan. 

The plant, which will use the same design as Hinkley Point C, is expected to be up and running by the mid to late 2030s and will supply energy to six million homes.

Once operational, the nuclear plant in East Suffolk will provide 3.2 GW of clean electricity and provide around 7% of the UK’s electricity needs for the next 60 years.

The Civil Works Alliance (CWA), which includes Bouygues, Laing O’Rourke and Balfour Beatty, has been appointed to deliver the main civil works.

This includes enabling works and earthworks, marine and tunnelling works, including three 3km tunnels, the construction of the nuclear island, conventional island and pumping stations, as well as ancillary buildings and roads.

The scope of works will be carried out through a delivery of 40 work orders which will be progressively agreed between the client and the CWA.