The UK Energy Security Department and Net Zero (DESNZ) have announced a new £5.5 billion subsidy scheme to support the Sizewell C nuclear power plant (NPP) through to its final investment decision (FID).
The announcement comes after a review by the Competition and Markets Authority to ensure the Devex scheme’s compliance with the Subsidy Control Act 2022. This new scheme operates independently from the existing SZC Investment Funding Scheme, which was launched following the government’s initial investment in Sizewell C in November 2022.
The funding, subject to necessary approvals and a future spending review, represents a significant investment in the UK’s nuclear energy infrastructure. The Sizewell C plant, featuring two units with a combined capacity of 3.2 GW, is positioned to be a key component of the UK’s net zero and energy security strategy. It will be located next to the current Sizewell B and the decommissioned Sizewell A plants in Suffolk, and its design mirrors the Hinkley Point C plant, employing EPR technology tailored for UK needs.
In May 2024, the Office for Nuclear Regulation (ONR) granted Sizewell C a licence to install and operate a nuclear power plant, resolving earlier issues related to the shareholders’ agreement and land ownership. The plant is expected to provide low-carbon electricity at a low system cost, significantly contributing to the UK’s net zero objectives.