The UK Energy Security Department and Net Zero (DESNZ) has unveiled a new £5.5bn subsidy scheme to support the Sizewell C nuclear power plant (NPP) through to a final investment decision (FID).
The initiative is set to bolster the development of the proposed nuclear facility, ensuring its progression towards operational status.
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The announcement follows a review by the Competition and Markets Authority of the Devex scheme’s adherence to the Subsidy Control Act 2022.
The Devex scheme is a separate entity from the existing SZC Investment Funding Scheme (SC10655), which was established following the government’s initial investment in SZC in November 2022.
The funding, contingent on necessary approvals and including the forthcoming spending review, represents a significant commitment to the UK’s nuclear energy infrastructure.
The proposed Sizewell C plant, comprising two units with a combined capacity of 3.2GW, is expected to be a critical asset for the UK’s net zero and energy security strategy.
Located adjacent to the current Sizewell B and the decommissioned Sizewell A plants in Suffolk, SZC’s design mirrors that of Hinkley Point C, the UK’s only other nuclear plant under construction, utilising EPR [extended producer responsibility] technology tailored for UK requirements.
The plant is anticipated to deliver low-carbon electricity at a low system cost, contributing significantly to the UK’s net zero goals.
In May 2024, the Office for Nuclear Regulation (ONR) granted Sizewell C a licence to install and operate a nuclear power plant.
The licence application, submitted in 2020, was delayed in 2022 due to complications with the shareholders’ agreement and land ownership. The ONR has now confirmed that these issues have been satisfactorily resolved.
