Sizewell C | Government restarts talks on funding £20bn nuclear plant

EDF needs to prove it has learnt lessons from the Hinkley Point C project and that Sizewell C would offer the public value for money.

The negotiations are to take place despite concerns that China General Nuclear Power (CGN) – which has a 20% stake in Sizewell – is planning to pull out of the project, as reported by the Daily Mail. This would increase the need for new investors.

The government has said it is considering a new deal to help EDF finance the scheme, which may include taking a direct stake and making taxpayers liable for any cost overruns.

It comes as the government sets out its future plans for UK energy production in the form of the long-awaited Energy White Paper, published today.

A statement from the Department for Business, Energy and Industrial Strategy said it would consider a greater role in the Sizewell project provided there was “clear value for money for consumers and taxpayers”.

Nuclear Industry Association chief executive Tom Greatrex said: “Any credible analysis of reaching net-zero shows you need lots of zero-carbon, including that which is not reliant on the weather.

“Nuclear construction isn’t expensive — financing nuclear projects is. Using a better model than at Hinkley would significantly reduce the cost for consumers.”

Sizewell C is now the only project in line for government investment after Japanese company Hitachi cancelled plans for the Wylfa Newydd power plant on Anglesey in September.

EDF's DCO application to build Sizewell has also been hit by delays this year due to Covid-19 restrictions and legal challenges, although plans received a major boost in October after a High Court decision to uphold planning permission for preparatory works at the site.

Last month, Energy and Climate Intelligence Unit head of analysis Jonathan Marshall warned that the development, which developer EDF has said could power 6M homes, may not represent value for money.

Commenting on the news of talks restarting, Marshall again urged caution.

"While it is likely that some new nuclear will be needed to reach net zero, putting billpayers on the hook for delays and cost overruns is a very risky move," he said.

"There is little evidence to suggest Sizewell will not be blighted by the same issues that have struck other European nuclear projects, which under the expected funding models would see Brits footing the bill for Sizewell many years before it starts generating power."

He emphasised that the government has been advised to "hold fire on new nuclear power stations beyond Sizewell" as the cost of renewables continues to fall. He said that it is clear offshore wind will "form the backbone of our power system, with nuclear playing a supporting role", and that the key is to "get the balance right".

Along with confirming the negotiations for Sizewell C, today's white paper sets out the government’s investment priorities for creating new energy streams as well as decarbonising energy production.

It has been welcomed by engineering and construction firms, and backs an increase in offshore windfarms, further development of carbon capture and storage and the roll out of electric vehicle charging infrastructure.

Like what you've read? To receive New Civil Engineer's daily and weekly newsletters click here.