The Government has announced the construction of the Sizewell C nuclear power plant in Suffolk will cost around £38 billion, as it struck a deal with a group of investors.
The Department for Energy Security & Net Zero (DESNZ) said Energy Secretary Ed Miliband had signed the final investment decision for the development.
The Government will become the biggest equity shareholder in the project with a 44.9% stake.
New Sizewell C investors include La Caisse with 20%, Centrica with 15%, and Amber Infrastructure with an initial 7.6%.
It comes alongside French energy giant EDF announcing earlier this month it was taking a 12.5% stake – lower than its previously stated 16.2% ownership.
The final deal clinches the investment needed to deliver the long-awaited nuclear plant since it was first earmarked for development in 2010.
It also confirms the cost of Sizewell C’s construction, which was forecast to be about £20 billion by developer EDF five years ago.
DESNZ said the cost is about 20% cheaper than the development of the Hinkley Point C nuclear power station in Somerset.
Sizewell C will power the equivalent of six million homes and create some 10,000 jobs once it is operational, which is expected to be in the 2030s.
Mr Miliband said: “It is time to do big things and build big projects in this country again – and today we announce an investment that will provide clean, homegrown power to millions of homes for generations to come.
“This government is making the investment needed to deliver a new golden age of nuclear, so we can end delays and free us from the ravages of the global fossil fuel markets to bring bills down for good.”
Chancellor Rachel Reeves said: “La Caisse, Centrica and Amber’s multibillion-pound investment is a powerful endorsement of the UK as the best place to do business and as a global hub for nuclear energy.
“Delivering next generation, publicly owned clean power is vital to our energy security and growth, which is why we backed Sizewell C.”
Chris O’Shea, Centrica’s chief executive, said Sizewell C was a “compelling investment for our shareholders and the country as a whole”.
“This isn’t just an investment in a new power station – it’s an investment in Britain’s energy independence, our net zero journey, and thousands of high-quality jobs across the country,” he added.
