Millions of households and businesses will continue benefitting from homegrown, clean power as the government backs a 20-year lifetime extension of Sizewell B nuclear power station, supporting 900 skilled jobs as part of a new ‘golden age’ of nuclear.
Consumers are set to benefit for decades to come, as the extended operation will reduce the costs of Britain’s energy system compared to building alternative generation, protecting billpayers and strengthening our energy security.
Currently, Sizewell B provides approximately 3% of the UK’s total electricity needs. The extension of the plant will maintain a vital source of energy for Britain, powering 2.5 million homes and protecting billpayers from exposure to volatile fossil fuel markets through secure, reliable, clean power.
Alongside the extension of Sizewell B, the government is continuing to back nuclear projects across the UK, including Britain’s first small modular reactors in Anglesey, and the construction of Sizewell C, set to produce clean power for the equivalent of 6 million homes and support 17,000 jobs at peak construction.
Energy Secretary Ed Miliband said:
Nuclear power is vital for our energy security, and this extension will help produce the clean power our country needs.
Chancellor of the Exchequer, Rachel Reeves, said:
Sizewell B is a vital part of Britain’s energy future, and this agreement secures clean, homegrown power for millions of homes until 2055
It is also a real vote of confidence in the hundreds of skilled workers in Suffolk who will power Britain’s clean energy future, delivering the long-term certainty that businesses and workers need.
Minister for Science, Innovation, Research and Nuclear Lord Vallance said:
This deal protects billpayers and boosts the country’s energy security by continuing to provide clean, secure power for millions of households.
By backing Sizewell B, we are delivering a golden age of nuclear and maintaining 900 skilled jobs in Suffolk.
The government and EDF have agreed terms for a 20-year Contract for Difference at £70.50 per megawatt hour in 2025 prices starting from 2035, the original closure date, with support and investment from Centrica.
Skilled workers in nuclear will be retained through the continued operation of Sizewell B, helping to sustain Britain’s expertise and strengthening homegrown supply chains. The Nuclear Industry Association estimates that nearly 100,000 people are employed in nuclear jobs across the country.
New estimates suggest that had Sizewell B been operating under this agreement during the energy price crisis following Russia’s invasion of Ukraine, consumers would have saved around £2 billion.
Simone Rossi, CEO of EDF UK, said:
Global events demonstrate time and again how vital it is for the UK to secure long term, low-carbon, homegrown electricity which protects British households and businesses from market volatility. Extending the life of the plants we already have alongside building new ones is central to EDF’s strategy.
Chris O’Shea, Chief Executive of Centrica said:
I’m delighted that Sizewell B, in which Centrica owns a 20% share, will continue to play a key role in the UK’s energy system for decades to come. Generating around 3% of the UK’s electricity, Sizewell B is critical to delivering the reliable, zero-carbon baseload power that supports Britain’s energy security, protects skilled jobs and underpins a more resilient economy. We welcome the constructive engagement with government in reaching this agreement, providing the certainty needed to support the required investment.
