nuclear-news

Sizewell C nuclear: Uncertainty surrounds final investment decision as parliamentary session shortened

New Civil Engineer 24 MAY, 2024 BY TOM PASHBY

The final investment decision (FID) for Sizewell C has been thrown into limbo by the early dissolution of parliament, with prime minister Rishi Sunak having called an election for 4 July.

Conservative politicians were caught off guard by the announcement, made at around 5pm on 22 May. This means Parliament will dissolve on Thursday 30 May.

Earlier in the day of the General Election announcement, the energy secretary Claire Coutinho issued a written statement about the proposed nuclear power station at Wylfa in north Wales where she also commented on the in-development Suffolk nuclear station, saying: “We intend to take a final investment decision on Sizewell C before the end of this Parliament.”

It can be assumed that Coutinho was unaware that the end date of the current parliament was due to be brought forward by the calling of the general election.

Nuclear minister Andrew Bowie also said earlier this month that an FID would be announced by end of this Parliament.

With Parliament now to dissolve next Thursday, the period known as ‘wash-up’ is underway where the government tries to pass a selection of remaining pieces of legislation.

The government has to date invested £2.5bn in the project in numerous tranches but intends to find private investors to cover the majority.

The government commenced the search for investment partners in the circa £20bn project last September. It said it is seeking companies with “substantial experience in the delivery of major infrastructure projects” and added “ministers will be looking for private investors who can add value to the project and will only accept private investment if it provides value for money, while bolstering energy security”.

Potential investors were required to register their interest by early October 2023 but there has been little news in the more than half a year since.

The shortening of the current parliamentary period means there is now uncertainty about whether the government will have time to make an FID.

A government source confirmed to NCE that progress continues towards FID.

The source said the government would continue to fund the project in the pre-election period using investment funds which had already been made available and said operations at the site would be business as usual in the lead-up to polling day.

If the current government does not make an FID for Sizewell C, it will fall to the next government due to be elected on 4 July to do so. If there is a hung Parliament, there may be a further delay to the formation of a new government.

A Sizewell C spokesperson said: “We are continuing to engage with investors and prepare for FID and we are moving ahead as planned on our construction site.”

However, campaign group Stop Sizewell C believes it is now impossible for a FID to be made before the General Election.

A spokesperson for the group said that this “lets the Conservatives off the hook for signing away another HS2”.

They continued: “It also presents a likely Labour government, looking to drive down bills and reach net zero by 2030, an opportunity to focus on more cost effective renewable projects.

“We are going to do everything in our power to ensure that this election signals the death knell for slow, expensive, risky Sizewell C.”

The money invested in the Sizewell C project will look to be recouped through a regulated asset base (RAB) model for funding, which would see the investors money returned through a surcharge on consumer energy bills…………………….  https://www.newcivilengineer.com/latest/sizewell-c-uncertainty-surrounds-final-investment-decision-as-parliamentary-session-shortened-24-05-2024/

May 25, 2024 - Posted by Christina Macpherson | business and costs, politics, UK