nuclear-news

UK unveils GBP 5.5bn subsidy plan for 3.2 GW nuclear plant

The UK government has approved a GBP 5.5bn subsidy scheme aimed at getting the planned 3.2 GW Sizewell C nuclear power plant in southeast England to a final investment decision (FID) later this year.

Reporting by: Kelly Paul, 30 Aug 2024 ,
https://montelnews.com/news/4f3631b9-b370-4dda-a878-61850539b094/uk-unveils-gbp-55bn-subsidy-plan-for-32-gw-nuclear-plant

The so-called Sizewell C Development Expenditure (Devex) Scheme will enable the government to increase equity injections into the project, giving it greater flexibility to cover development costs up to and including an FID, it said in a statement on Friday.

Funding for the Devex scheme will be subject to the Labour government’s forthcoming spending review.

The UK is targeting 50 GW of nuclear capacity by 2050 as part of its plans for energy security. Currently, the country’s eight nuclear power sites have a total combined capacity of about 6.5 GW.

The government is seeking private investors for Sizewell C via a regulated asset base (RAB) financing mechanism.

Sizewell C received a nuclear site licence from the country’s Office for Nuclear Regulation in May.

White elephant?
However, in the wake of today’s announcement, campaign group Stop Sizewell C questioned where the money was going to come from.

“Sizewell C has already chewed through GBP 2.5bn and now we learn that there is the potential for a staggering GBP 5.5bn more of our taxpayers’ money to be thrown at this white elephant,” it said in a statement. 

“Labour complained about a black hole in the country’s finances, yet now they are proposing to dig still further. Where would this cash come from?”

September 1, 2024 - Posted by Christina Macpherson | business and costs, UK