Britain’s nuclear fleet has been given a major boost after the Government agreed terms to keep Sizewell B generating until 2055.
Centrica has confirmed that Heads of Terms have been signed for a 20-year regulated Contract for Difference, extending the life of the 1.2GW Suffolk power station from its current planned closure date in 2035.
The deal means Sizewell B, which generates around 3% of the UK’s electricity, could remain on the system for another three decades.
From April 2035 to March 2055, the plant will receive a guaranteed strike price of £70.50/MWh, based on 2025 prices and linked to CPI inflation.
The agreement removes Sizewell B’s exposure to volatile wholesale electricity prices and gives Centrica and EDF Energy the long-term revenue certainty needed to justify the investment required to keep the station operating.
Around £800 million is expected to be spent on the life extension programme.
Centrica said its share of that investment will be funded through operating cash flow from its existing nuclear partnership with EDF Energy over the next 15 years, with no need for additional equity to be injected.
The final contract with the Government is expected to be completed later this year. Sizewell B is the UK’s only Pressurised Water Reactor and one of five nuclear power stations still operating across the country.
It provides enough zero-carbon electricity for around 2.5 million homes each year and remains an important source of constant power when wind and solar output is low.
The deal also protects a major source of skilled employment and gives the UK more breathing space as it tries to build the next generation of nuclear stations.
Chris O’Shea, Chief Executive of Centrica, said: “I’m delighted that Sizewell B 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.”
He added: “We welcome the constructive engagement with Government in reaching this agreement, providing the certainty needed to support the required investment. The agreement gives Sizewell B a clear, regulated framework through to the 2050s.”
Centrica owns 20% of the UK’s operating nuclear fleet and is also increasing its position in new nuclear.
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