Reeves signs off on £14.2 billion to build new nuclear plant Sizewell C
Rachel Reeves has signed off on £14.2 billion of investment to build the new Sizewell C nuclear plant as part of the spending review.
The Chancellor is set to confirm the funding at the GMB Congress today.
Energy Secretary Ed Miliband said new nuclear power capacity was needed to deliver a ‘golden age of clean energy abundance’.
Trade unions welcomed the move, which the Treasury said would go towards creating 10,000 jobs, including 1,500 apprenticeships.
But the head of a campaign group opposing the plant criticised the decision to commit the funding, saying it is still not clear what the total cost will be.
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.
The last time Britain completed one was in 1987, which was the Sizewell B plant.
Hinkley Point C, in Somerset, is under construction and is expected to produce enough power for about six million homes when it opens, but that may not be until 2031.
The Energy Secretary said: “We need new nuclear to deliver a golden age of clean energy abundance, because that is the only way to protect family finances, take back control of our energy, and tackle the climate crisis.
“This is the Government’s clean energy mission in action – investing in lower bills and good jobs for energy security.”
It will get the UK off the ‘fossil fuel rollercoaster’, he separately told The Guardian.
“We know that we’re going to have to see electricity demand at least double by 2050. All the expert advice says nuclear has a really important role to play in the energy system.
“In any sensible reckoning, this is essential to get to our clean power and net zero ambitions.”
The joint managing directors of Sizewell C, Julia Pyke and Nigel Cann, said: “Today marks the start of an exciting new chapter for Sizewell C, the UK’s first British-owned nuclear power plant in over 30 years.”
At the peak of construction, Sizewell C is expected to provide 10,000 jobs and the company behind the project has already signed £330 million worth of contracts with local businesses.
The plant, which will power the equivalent of six million homes, is planned to be operational in the 2030s.
The Government also confirmed one of Europe’s first small modular reactor programmes and will invest £2.5 billion over five years in fusion energy research as part of plans to boost the UK’s nuclear industry.
Rolls-Royce SMR has been selected as the preferred bidder, with hopes the smaller plants will be quicker to build than traditional nuclear power stations.
Great British Energy – Nuclear will aim to allocate a site for SMRs later this year and connect projects to the grid in the mid-2030s.
Cllr Richard Rout, Suffolk County Council’s cabinet member for devolution, local government reform and NSIPs, said: “This is a step forward for Suffolk and creates more certainty for the future of our communities and residents.
“It is now crucial that we look to maximise the significant economic opportunities that Sizewell C will bring.
“This includes the importance of creating a lasting legacy, so that when construction is over those newly created jobs, skills and businesses are transferable. This cannot be a boom-and-bust scenario.
“We have a very real opportunity to make Suffolk a centre of excellence for operations and maintenance in the nuclear sector.
“We have always put on record our support for guaranteeing the nation’s energy security.
“But regarding Sizewell C, we have also worked hard to ensure that its impacts on communities and the environment are suitably minimised and mitigated.
“As the project progresses, we will continue to hold the developer to account and ensure conditions are adhered to.”
Jess Asato, MP for Lowestoft, said: “I am delighted by today’s announcement of funding from the Labour Government.
“This is good news for our national energy security, good news for Suffolk’s economic growth, and good news for local jobs, especially for people in Lowestoft and across the east coast who have seen our traditional industries decline in recent years.
“Sizewell C’s commitment to Lowestoft and Suffolk is already making a difference, and I was especially proud last year to sign an agreement to bring 500 clean energy jobs to our town.
“Since then, we’ve seen real progress, with 300 people attending our first jobs fair at East Coast College, and local businesses already stepping up to play their part in making this project a success.
“The benefits to our local supply chain are clear too, with investment in skills at East Coast College and support for organisations like Access Community Trust helping to ensure that local people can get the training and support they need to take up these new opportunities.”
The GMB union said giving Sizewell C the go-ahead was ‘momentous’
Regional Secretary Warren Kenny said: “Nuclear power is essential for clean, affordable, and reliable energy – without new nuclear, there can be no net zero.
“Sizewell C will provide thousands of good, skilled, unionised jobs and we look forward to working closely with the Government and Sizewell C to help secure a greener future for this country’s energy sector.”
Mike Clancy, general secretary of Prospect, said: “Delivering this funding for Sizewell C is a vital step forward, this project is critical to securing the future of the nuclear industry in the UK.
“New nuclear is essential to achieving net zero, providing a baseload of clean and secure energy, as well as supporting good, unionised jobs.
“Further investment in SMRs and fusion research shows we are finally serious about developing a 21st-century nuclear industry. All funding must be backed up by a whole-industry plan to ensure we have the workforce and skills we need for these plans to succeed.”
Alison Downes of Stop Sizewell C said ministers had not come clean about the full cost of the project, which the group have previously estimated could be some £40 billion.
“There still appears to be no final investment decision for Sizewell C, but £14.2 billion in taxpayers’ funding, a decision we condemn and firmly believe the government will come to regret.
“Where is the benefit for voters in ploughing more money into Sizewell C that could be spent on other priorities, and when the project will add to consumer bills and is guaranteed to be late and overspent just like Hinkley C?
“Ministers have still not come clean about Sizewell C’s cost and, given negotiations with private investors are incomplete, they have signed away all leverage and will be forced to offer generous deals that undermine value for money. Starmer and Reeves have just signed up to HS2 mark 2.”
Adrian Ramsay, MP for Waveney Valley and co-leader of the Green Party, said: "Nuclear power is hugely expensive and far too slow to come on line.
"The money being spent on this nuclear gamble would be far better spent on insulating and retrofitting millions of homes, bringing down energy bills and keeping people warmer and more comfortable.
“We should also be investing in genuinely green power such as fitting millions of solar panels to roofs and in innovative technologies like tidal power.
“All this would create many more jobs than nuclear ever will."
Cllr Tom Daly, East Suffolk Council’s cabinet member for energy projects, said the authority believed that truly renewable energy, such as offshore and onshore wind and solar, provides a better long-term answer to the energy security and carbon reduction future of the UK.
“However, with this announcement, the Sizewell C project now proceeds with certainty, and we will work closely with Sizewell C Ltd and our technical advisors to ensure that the funding we secured for local communities will genuinely benefit the people we serve,” said Cllr Daly.
“This ‘Deed of Obligation’ includes a commitment by Sizewell C, secured by East Suffolk Council, to provide £30 million in investment for housing, economic development and tourism schemes, as well as a £23 million community fund and £12 million towards the natural environment.
“East Suffolk Council also requests - in parallel with this significant investment in nuclear energy - that similar funding will be provided for community energy and domestic insulation solutions to meet the urgency of the climate crisis and unaffordable energy prices for many.
“Domestic solar PV combined with other appropriate energy saving technologies are a both a realistic and achievable, cost-effective path to meeting our climate commitments, as well as alleviating fuel poverty.”
Cllr Daly said through meetings with ministers and regular engagement, they will continue to lobby the government further to ensure a co-ordinated and strategic approach to energy policy and Nationally Significant Infrastructure Projects which protects the wellbeing of the district.
“As part of this we are urging local residents to get involved in the next stage of the planning process for the proposed Sea Link project, for which a significant amount of onshore infrastructure is proposed, impacting the East Suffolk district,” he added.
The application has been submitted for examination to the Planning Inspectorate, and only those registered will be able to comment during the examination period.
Organisations and individuals wishing to comment must register as an interested party by Monday, June 23 at Sea Link - Project information.
