UK Government Supports Development of Nuclear Project With GBP100 Million
January 26 2022 - 7:30PM
Dow Jones News
By Jaime Llinares Taboada
The U.K. government said Thursday that it will provide 100
million pounds ($135.1 million) of funding for a project to build a
new nuclear plant in Suffolk, in the east of England, which is
being developed by Electricite de France SA.
The Department for Business, Energy and Industrial Strategy said
the funds will be used to continue the development of Sizewell C,
attracting further financing from private investors and potentially
the U.K. government.
EDF said the money will help it move the project to a final
investment decision.
The aim is to bring the project into maturity, attract investors
and advance to the next phase in negotiations. In return for the
funding, the government is taking rights over the Sizewell C land
and shares in the project's holding company. The British government
said the money will be returned to taxpayers whether the project
proceeds or not.
"The funding announced today will further support the
development of Sizewell C during this important phase of
negotiations as we seek to maximize investor confidence in this
nationally significant project," Business and Energy Secretary
Kwasi Kwarteng said.
Prime Minister Boris Johnson committed in 2020 to bring at least
one large-scale nuclear project to a final investment decision.
The proposed Sizewell C project would see the construction of a
nuclear power station with a generation capacity of 3.2
gigawatts--enough to power the equivalent of around 6 million
homes--next to the existing 1.2-gigawatt Sizewell B plant.
The U.K.'s current nuclear capacity in operation is around 6.8
gigawatts, generating around 20% of the country's total electricity
output, according to the World Nuclear Association.
"In light of high global gas prices, we need to ensure Britain's
future energy supply is bolstered by reliable, affordable,
low-carbon power that is generated in this country," Mr. Kwarteng
said.
One of the biggest concerns regarding Sizewell C is about
funding, since its construction is expected to cost around GBP20
billion. The British government has proposed a nuclear financing
bill to enable a Regulated Asset Base funding model for these
projects, which allows the developer to charge a regulated price to
consumers. The government says this model would lower capital costs
and reduce reliance on overseas developers for finance.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
January 26, 2022 19:15 ET (00:15 GMT)
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