The UK government has given the go-ahead for the £38 billion Sizewell C nuclear power station in Suffolk, marking a major milestone in the country’s long-term energy strategy.

Energy Secretary Ed Miliband confirmed the final investment decision today, describing the project as a bold step towards building a low-carbon, energy-secure future. While the government will retain a 44.9% stake—making it the largest single shareholder—it will not hold a controlling interest.

Other investors include Canada’s La Caisse (20%), Centrica (15%), France’s EDF (12.5%) and US-based Amber Infrastructure (7.6%). The project will be underpinned by a £5 billion loan guarantee from France’s Bpifrance Assurance Export, alongside debt financing led by the UK’s National Wealth Fund.

Sizewell C will use the Regulated Asset Base (RAB) model, allowing investors to begin receiving returns during construction through levies on UK households and some businesses. This approach shifts financial risk from investors to consumers—a point that has attracted criticism in the past, but one the government views as key to unlocking large-scale infrastructure investment.

The project’s estimated capital cost of £38 billion is around 20% lower than that of its sister project, Hinkley Point C, which is running significantly over budget and behind schedule. Sizewell C’s costings have undergone extensive due diligence and peer review, with officials confident that lessons learned from Hinkley will drive efficiency.

Early works are already under way on site, with no confirmed date for the start of main construction. At peak, the project is expected to support 10,000 direct jobs and tens of thousands more through its supply chain.

Major contractors from Hinkley Point C—including Bouygues-Laing O’Rourke JV (Bylor) and Balfour Beatty—are set to continue their roles at Sizewell C.

Building, Design & Construction Magazine | The Choice of Industry Professionals