British Gas is preparing to take a significant multibillion pound stake in Sizewell C, a nuclear power plant championed by Energy Secretary Ed Miliband.
The deal, led by British Gas’s parent company Centrica, is expected to be announced within weeks and will see the company acquire a 15% stake in the project.
Centrica’s investment will match the stake held by French state-owned energy giant EDF, giving a major boost to Sizewell C after extended delays and financing hurdles. The move comes shortly after the Government confirmed it would inject an additional £14 billion into the project by 2029 bringing the total public investment to £17 billion.
The Government’s backing of Sizewell C is part of a broader strategy to revitalise the UK’s nuclear energy sector. Once operational, the plant is projected to supply electricity to six million homes. Ed Miliband has defended the heavy investment, calling it “the right choice for bills, the right choice for jobs and the right choice for growth.”
Sizewell C has long been plagued by delays and spiralling costs. Initially scheduled to open in 2020, the plant is now not expected to become operational until after 2030. The total cost has also ballooned to £40 billion double the original estimate.
Despite the cost increase, officials have stood by the project, arguing that lessons learned from EDF’s Hinkley Point C development will lead to faster and more efficient construction at Sizewell. A government spokesperson noted that EDF’s second Hinkley unit is being built 25% faster than the first, and said Sizewell C would benefit from this replication.
In addition to Centrica and EDF, several major investors including Amber Infrastructure Partners, Brookfield Asset Management, and Canadian pension fund CDPQ are reportedly considering stakes in the project.
Centrica and EDF have been contacted for comment.
