The UK government announced a £14.2 billion investment to build the Sizewell C nuclear power station in Suffolk, according to Government official statement. Energy Secretary Ed Miliband confirmed the funding as part of the government's spending review on June 10, 2025. The project will create 10,000 jobs during peak construction and generate electricity for six million homes when operational.

Chancellor Rachel Reeves described the commitment as "the biggest nuclear building programme in a generation." The Sizewell C facility will feature two European Pressurised Water Reactors with 3,200 megawatt capacity. Construction is expected to begin in 2025, with operations starting in the 2030s. The UK government now holds an 83.8% stake in the project, while French energy company EDF maintains 16.2% ownership.

Historic Shift After Decades Of Nuclear Stagnation

No new nuclear plant has opened in the UK since 1995, despite Britain opening the world's first commercial nuclear power station in the 1950s. All existing nuclear reactors except Sizewell B face retirement by the early 2030s. Carbon Brief reports that Miliband called this a "golden age" of nuclear investment, essential for net-zero goals and increased electricity demand.

The announcement follows February 2025 planning reforms that removed regulatory barriers for nuclear construction. Reuters notes the project represents only the second new nuclear plant built in Britain in over two decades, following the delayed Hinkley Point C facility.

Sizewell C was originally identified in 2009 as a potential nuclear site. However, the project remained unfunded for 14 years under previous governments. The Chinese General Nuclear Power Group initially held a 20% stake before the UK government bought out their position in 2022 amid security concerns.

Economic Impact And Industry Response

The investment will generate 1,500 apprenticeships and support thousands of additional jobs across UK supply chains. Construction Management reported the project has already signed £330 million in contracts with local companies. Approximately 70% of contracts are expected to benefit 3,500 British suppliers.

Major financial institutions have expressed growing support for nuclear expansion. World Nuclear Association documented that 14 global banks, including Bank of America, Barclays, and Goldman Sachs, pledged support to triple nuclear capacity by 2050 during September 2024 meetings in New York.

Opposition group Stop Sizewell C criticized the project as "too slow and expensive" to address climate risks. The organization questioned transparency around total project costs, which some estimates place near £40 billion. The government has not disclosed completion dates or final cost projections.

Nuclear Renaissance Amid Energy Security Concerns

The Sizewell C approval forms part of Britain's broader nuclear strategy targeting 24 gigawatts of capacity by 2050. Nuclear Business Platform analysis shows global nuclear generation is expected to grow 3% annually through 2026, driven by increased output across multiple markets.

Government officials emphasized energy security motivations, particularly reducing dependence on fossil fuel markets. The announcement coincides with plans for small modular reactor programs and £2.5 billion in fusion energy research over five years.

Market Response And Future Implications

The nuclear industry's economic contribution has grown 25% in three years, driven by high-profile projects like Hinkley Point C and Sizewell C. Morgan Stanley research projects nuclear power could attract $1.5 trillion in global investments through 2050, potentially generating 17% of worldwide electricity by that date.

Traditional financial institutions increasingly view nuclear energy as compatible with sustainable financing frameworks. The government's commitment provides market confidence for private investment, though five additional investors remain in the bidding process for Sizewell C participation.

The project represents a fundamental shift in UK energy policy after decades of nuclear decline. However, successful delivery depends on resolving supply chain constraints, maintaining construction schedules, and managing costs that have historically exceeded projections in major nuclear projects.

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