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The UK government is set to hold a minority stake in the Sizewell C nuclear power project as ministers close in on a final deal to secure private investment into the multibillion pound development.
The government’s stake is expected to be diluted to around 47.5 per cent, with Canadian investor Brookfield Asset Management, British energy supplier Centrica and French energy giant EDF holding the remainder, according to people with knowledge of the ongoing negotiations.
Brookfield is likely to take a 25 per cent stake, with Centrica buying 15 per cent, the people said.
EDF, which is leading the development of the site, said on Tuesday it would reduce its holdings to 12.5 per cent. The announcement came as part of French President Emmanuel Macron’s state visit to the UK this week.
The Suffolk project is part of a push by the UK government to use nuclear power to ease Britain’s transition away from fossil fuels such as gas in electricity generation.
UK energy secretary Ed Miliband said last month that Sizewell would be the beginning of a “golden age” for nuclear in Britain. He also said the project would be “majority public funded”. The government has committed £14.2bn.
The final cost of Sizewell could be close to £40bn, according to industry estimates that the government and Sizewell have not accepted. The British government currently owns about 84 per cent of the project.
Electricity consumers will be charged a fee on their bills to help fund Sizewell’s construction, reducing the risk for investors.
Brookfield and Centrica declined to comment. The Department for Energy Security and Net Zero said the government would remain a “significant” shareholder. EDF declined to comment.
EDF yesterday said its total investment would be a maximum of £1.1bn. The company has already invested around £600mn. Bpifrance, the country’s export credit agency, is also providing a £5bn debt guarantee.
Additional reporting by Ian Johnston
