The developer of Sizewell C has said construction work can now formally begin after the company triggered its Development Consent Order for the new nuclear plant in Suffolk.
Sizewell C said it has satisfied all of the conditions imposed when it was granted planning permission in July 2022.
The conditions, set out in a Deed of Obligation signed with East Suffolk Council and Suffolk County Council, included undertaking road surveys and establishing governance groups.
Julia Pyke and Nigel Cann, joint managing directors at Sizewell C, said: “This is a significant moment for our project in Suffolk and a big step for British energy security. We’ve had a really successful year of pre-commencement works on site, and we’ve been working hard with local partners and organisations to ensure we’re ready to take this next step for the project.
“While Sizewell C will be a linchpin of Britain’s energy system, it’s much more than a power station, especially for this region. Entering the construction phase will be a game-changer for the area, helping to boost employment and skills, enhancing the local environment, and developing new clean technologies.”
The site was due to be visited on Monday (12 January) by nuclear minister Andrew Bowie, who said: “This is a major milestone for Sizewell C and our ambition to deliver up to 24GW of low-carbon nuclear power by 2050.
“It comes after we announced the biggest expansion of nuclear power for 70 years which will help to bring down bills and bolster our energy security.”
The campaign groups Stop Sizewell C and Together Against Sizewell C said they would be holding a demonstration at the site during the minister’s visit.
Alison Downes from Stop Sizewell C said: “We are shocked that the government has let loose the bulldozers at Sizewell C, when the finance for this deeply flawed project is, by their own admission, still months away. It is also telling that the enormous cost is being kept secret.
“Significant environmental destruction has already taken place, yet there is still so much unknown, including whether the necessary billions of pounds can actually be raised, and from whom. It is touch-and-go whether – in these politically uncertain times – this slow, expensive and damaging project can stumble over the line before the election.”
Sizewell C was granted a Development Consent Order in July 2022. The decision by the energy secretary at the time Kwasi Kwarteng went against the recommendations of the Planning Inspectorate’s Examining Authority, which raised concerns over the environmental impacts of the plant and the lack of clarity over its future water supplies.
Together Against Sizewell C subsequently mounted a legal challenge in an attempt to overturn the decision. However, its claims were dismissed by the Court of Appeal in December.
EDF is the lead investor in Sizewell C, which will be a close replica of its sister project Hinkley Point C, currently under construction in Somerset. EDF recently announced it had lifted into place the dome for the first of its two reactor buildings.
Hinkley Point C is receiving financial support through the Contracts for Difference scheme, which only allows investors to begin receiving payments once the power station is up and running.
Sizewell C will be the UK’s first nuclear project to be funded under the Regulated Asset Base model during the construction phase.
The mechanism was introduced by the government to cut financing costs for new nuclear plants by allowing investors to begin receiving revenues before they start generating power. The payments will be collected from energy bills via suppliers.
Sizewell C is also the first nuclear project in a generation to receive direct investment from the government, which agreed to acquire a 50% stake in November 2022. The government said it would pump £679 million into the project to help get it over the line and buy out the Chinese firm CGN. It reportedly agreed to pay the company £100 million to acquire its 20% stake.
The first £170 million tranche of investment was released in July last year to enable preparatory works at the site. A second tranche of £341 million was released in August to help build up the supply chain for the project.
In September, the government and EDF launched an equity raise process to attract more private investors to the project, and last week announced their intention to raise £20 billion of total investment by the end of this year. Sizewell C said the commencement of construction work is not dependent on a final investment decision.
Sizewell C said the project will provide 1,500 apprenticeships and support thousands of jobs during construction, with the onsite workforce peaking at 7,900.
Charlotte Childs, national officer at the GMB union, said: “Today’s announcement is long overdue, but is great news for both nuclear workers and energy workers in the UK.
“We all know there can be no net zero without new nuclear – which provides reliable, carbon free power.
“It’s time to stop dithering and get spades in the ground so we can meet our environmental responsibilities whilst still keeping the lights on.”
Tom Greatrex, chief executive of the Nuclear Industry Association, said: “Construction at Sizewell C means tens of thousands of jobs on site and across the country and potentially billions in investment for the region.
“The project will drive much needed work into British industry and sustain the skills we need for a new nuclear programme. Sizewell lays that foundation for jobs, clean power and energy security for the rest of this century.”
Last week, the government announced plans to relax planning rules to allow nuclear power stations to be built on more sites than are currently permitted as part of a roadmap for the development of the sector. It said greater freedom over siting will be necessary to support the rollout of small and advanced modular reactors.