Caisse de Dépôt Commits £1.7 Billion to Sizewell C Nuclear Project in UK

Sizewell C

Prime Highlights

  • Canada’s pension fund Caisse de Dépôt et Placement du Québec (CDPQ) will invest a maximum of £1.7 billion in 20% equity for the UK’s Sizewell C nuclear power plant.
  • The £38 billion project will generate 3.2 GW of low-carbon electricity and enhance UK energy security.

Key Facts

  • Sizewell C will supply six million homes and provide up to 10,000 jobs during construction.
  • The project will be funded by the UK government and private investors in a partnership using the Regulated Asset Base (RAB) model.

Key Background

Sizewell C nuclear power facility in Suffolk was approved by the UK government backed by the majority by CDPQ, with a 20% equity stake for up to £1.7 billion. The project is worth up to £38 billion. The remaining majority stakeholders are the UK government with 44.9%, Centrica with 15%, EDF with 12.5%, and Amber Infrastructure with 7.6%.

Sizewell C will generate 3.2 gigawatts of low-carbon electricity, enough to power almost six million homes. Construction on the site will provide around 10,000 jobs and will be the largest ever energy infrastructure project in the UK. The completed plant will cut £2 billion annually off the nation’s energy bills and will be a major stepping stone towards enabling the nation to meet its net-zero carbon ambitions.

The project funding is through the Regulated Asset Base (RAB) model in which buyers repay some of the price when in the construction stage. The model keeps the investor’s financial risk to a minimum but was the one that worried over loading prices on houses in the long term because energy prices would rise moderately while in the construction stage. But the UK government insists the long-term benefits of low-carbon, secure power are more than worth the short-term expense.

CDPQ’s investment in Sizewell C forms part of its long-term strategy of investing in green infrastructure schemes. It is one of the largest Canadian pension fund investments in British energy infrastructure and a confidence booster for Britain’s nuclear power scheme. The power station will be developed on the EPR reactor model, as with Hinkley Point C, but with cost saving estimation and improved planning of development.

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