Major milestone for Sizewell C nuclear project

Construction of the Sizewell C nuclear power station can now get under after the project reached financial close.

Sizewell C is the first nuclear power project to be financed using the UK’s Regulated Asset Base (RAB) model.

A total of 13 banks supported a £5bn debt raise which will sit alongside a £500m working capital facility and a loan from the National Wealth Fund.

The project will eventually supply up to 6 million homes for at least 60 years.

The RAB model aims to lower financing costs by allowing regulated revenues during construction. The Government estimates that using the RAB can save consumers £30 billion, compared to other models, as a result of lower financing costs.

Energy Secretary, Ed Miliband, said: “This is a major milestone in delivering our new golden age of nuclear, with private investment starting to flow into Sizewell C.”