UK Sizewell C Nuclear Investment Decision Risks Dragging to 2025

(Bloomberg) -- A final investment decision in Britain’s next large-scale nuclear power plant, Sizewell C, risks getting pushed into next year as negotiations with private investors are taking longer than anticipated following the UK election.

Most Read from Bloomberg

• Manchester Is Giving London a Run for Its Money

• Boston’s Broke and Broken Transit System Hurts Downtown Recovery

• A Floating Island in Baltimore Raises Hope for a Waterfront Revival

• A Warehouse Store Promises Housing for South LA, in Bulk

• The Cross-Continental Race Using Only Public Transit

The developer of the government-backed project had previously expected to get funding lined up by the end of this year, but with negotiations moving slowly, it’s increasingly likely that the plant might not get the go-ahead until 2025, according to people familiar with the matter who asked not to be named because the talks are private.

New nuclear is critical to the government’s plans to cut emissions and reach 2050 net zero goals. The technology is seen by policymakers as a key source of stable, low carbon electricity but building needs to accelerate. Currently the only station under construction is Hinkley Point C, which has been repeatedly delayed and is expected to cost as much as £47.9 billion ($61.8 billion).

The government said it’s committed to Sizewell C and is still aiming for a final investment decision before the end of the year, a spokesperson for the Department for Energy Security and Net Zero said.

A spokesperson for Sizewell C declined to comment.

The Sizewell C design is a copy of Hinkley, and the developer expects this will mean it costs significantly less. Prime Minister Keir Starmer’s Labour Party expressed support for the project in its manifesto ahead of the election but the change in government in July put the process temporarily on hold, one of the people said. It has since restarted.

Negotiations with private investors including Centrica Plc, Emirates Nuclear Energy Corporation, Amber Infrastructure Group Ltd and Schroders Greencoat LLP, are ongoing.

Centrica has said it’s considering investing in Sizewell C, potentially making it a key stakeholder in the British government-led project.

“An investment decision this year would be dependent upon how the government and the Sizewell company want to move,” Chief Executive Officer Chris O’Shea said on a call with reporters last month. “We are able to move as quickly as the other parties, but I think we should be realistic that the government have been in office less than three weeks and they need to figure out what they want to do.”

Centrica declined to comment for this story.

Equity is one critical part of the funding mix. Banks have also offered to lend as much as £12.5 billion to help finance the plant.

--With assistance from Vinicy Chan.

Most Read from Bloomberg Businessweek

• Inside Worldcoin’s Orb Factory, Audacious and Absurd Defender of Humanity

• Surgeons Cut a Giant Tumor Out of My Head. Is There a Better Way?

• Singapore's Wooden Building of the Future Has a Mold Problem

• New Breed of EV Promises 700 Miles per Charge (Just Add Gas)

• There’s a Gender Split in How US College Grads Are Tackling a More Difficult Job Market

©2024 Bloomberg L.P.