Sizewell C triggers Development Consent Order, marking formal start of construction

It comes after completion of pre-construction work and satisfaction of its planning requirements as set out in its Deed of Obligation.

The project was granted permission to build in July 2022, and preparatory works have taken place, but certain conditions needed to be met before it could commence full construction under its DCO.

The plant, which is co-owned by the UK Government and EDF Energy, has now unlocked a £250M fund for local benefits, including £23M for community projects, £100M for the environment, £12M to support local tourism, and a £12M housing fund to boost private housing and tourist accommodation in the region.

The private investment process to fund the construction of the plant is ongoing, with the government having commenced the hunt in September. The nuclear plant on the Suffolk coast that is projected to cost £20bn and take between 13 and 17 years to construct, though estimates of cost and timescale vary.

The project will be funded through a regulated asset base (RAB) model, like those used on Tideway and Heathrow Terminal 5. This sees the investors pay a large upfront contribution that is recouped through a surcharge on taxes, with the amount being set by an independent regulator, in this case Ofgem. While it means a small increase in taxes, the government estimates it will save consumers at least £30bn on the project.

The RAB model means the risk is shared between investors and taxpayers and in theory incentivises the investors to push the project through to completion on schedule.

The news about Sizewell C triggering its DCO comes days after the UK Government launched its Civil nuclear: roadmap to 2050 which set out the ambition to build 24GW of new nuclear.

In a statement, Sizewell C said the project would “invest in local skills” to “build and operate Sizewell C” and to “support the UK’s future nuclear ambitions.”

Sizewell C joint managing directors Julia Pyke and Nigel Cann said: “This is a significant moment for our project in Suffolk and a big step for British energy security.

“We’ve had a really successful year of pre-commencement works on site, and we’ve been working hard with local partners and organisations to ensure we’re ready to take this next step for the project.

“While Sizewell C will be a linchpin of Britain’s energy system, it’s much more than a power station, especially for this region.

“Entering the construction phase will be a game-changer for the area, helping to boost employment and skills, enhancing the local environment, and developing new clean technologies.”

Reacting to the commencement of formal construction at Sizewell C, Nuclear Industry Association chief executive Tom Greatrex said: “Today's commencement of formal construction is good news for Britain. Construction at Sizewell C means tens of thousands of jobs on site and across the country and billions in investment for the region.

“The project will drive much needed work into British industry and sustain the skills we need for a new nuclear programme. Sizewell lays that foundation for jobs, clean power and energy security for the rest of this century.”

Mark Burrows, regional commercial director of Suffolk-based Breheny Civil Engineering, one of the largest family-owned civil engineering companies in the UK, said: “This vast nationally strategic project offers us within Suffolk the chance to showcase our extensive talent and resources and will provide work opportunities for many years.

“We’re already participating in projects on the Sizewell complex, and we look forward to working on many more opportunities.

“Our 330+ people and their families live and work in the geographical area affected by Sizewell and are looking forward to the social, environmental, and economic benefits the project will provide our community.”

It said it expected to create 1,500 apprenticeships and to have one-third of its peak construction workforce of 7,900 coming from the local area.

GMB national officer Charlotte Childs said: “Today’s announcement is long overdue, but is great news for both nuclear workers and energy workers in the UK.

“We all know there can be no net zero without new nuclear - which provides reliable, carbon-free power.

“It’s time to stop dithering and get spades in the ground so we can meet our environmental responsibilities whilst still keeping the lights on.”

Suffolk County Council deputy leader and cabinet member for finance and environment Richard Rout said: “Despite a number of concerns during the planning process, this council has worked hard to ensure that should Sizewell C go ahead, Suffolk will be suitably compensated.

“Now that the project is officially underway, we will hold Sizewell C to account and make sure it meets its commitments to support local communities, mitigates its impact on them, and listens to ongoing concerns and issues from residents and businesses.

“We are looking forward to making the most of the economic opportunities for Suffolk which will come from this project, in particular our role coordinating skills and education to create opportunities locally.

“We have always put on record our support for guaranteeing the nation’s energy security, and a future of low carbon energy.”

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