Bosses at Sizewell C have said the major nuclear project is “on budget and on schedule” after securing its necessary financing.
The planned nuclear power plant reached financial close on Tuesday, indicating that all necessary funding will now be able to flow into the major infrastructure project.
Sizewell C concluded an equity raise this summer and has now confirmed it has secured a further £5.5 billion through debt and loan arrangements.
In July, the Government said the construction of the power plant would cost around £38 billion.
The Government-backed development, based in Suffolk, started building work in January last year but had been in talks to secure the full funding package needed.
On Tuesday, it confirmed it has raised £5 billion of debt through the BpifranceAE export credit facility, with the backing of 13 banks, as well as a £500 million working capital facility.
These will be in addition to a loan from the National Wealth Fund.
The Government was confirmed as the development’s biggest equity shareholder in the summer, with a 44.9% stake.
Other investors include Canadian investment fund La Caisse with 20%, British Gas owner Centrica with 15%, and Amber Infrastructure with an initial 7.6%.
Julia Pyke, joint managing director of Sizewell C, told the PA news agency that it has reached a “key milestone” as it pushes ahead with the mammoth building project.
“We spent a long time in discussions over capital, in ensuring the process was right to make sure it was best funded, so this a really positive moment,” she said.
“There had been plenty of chatter over whether it would be undersubscribed but it was in fact oversubscribed, which gives a positive message about investment demand with projects like this.”
She said there are already 1,500 workers on site after it started building last year and has “remained on budget and on schedule”, amid a target to complete the site in the 2030s.
Nuclear plants are seen as increasingly important electricity sources as the Government tries to decarbonise Britain’s grid by 2030, replacing fossil fuels with green power.
However, the last time Britain completed one was in 1987, which was the Sizewell B plant.
The Sizewell B site is expected to stop generating energy in 2035 but operator EDF has said it is planning a “life extension” which could take it to 2055.
Energy Secretary Ed Miliband said: “This is a major milestone in delivering our new golden age of nuclear, with private investment starting to flow into Sizewell C.
“By backing nuclear, we are creating thousands of high-quality jobs across the country, supporting British supply chains and keeping the lights on with homegrown energy for generations to come.”
