Linklaters has advised the UK Government in connection with its acquisition of a 50% equity interest in the Sizewell C nuclear project in Suffolk.
The UK government's £679 million investment in Sizewell C will support the project's continued development. EDF will also provide additional investment to match the government's stake in the project. The government will work with the Sizewell C project company to seek to attract new third-party investment to help finance the project's construction and operation.
The move is the first direct government investment in a new nuclear power project since Sizewell B, the last nuclear power station to be built in the UK, was approved for construction in 1987.
The Sizewell C project will be the first project to use the newly established Regulated Asset Base (RAB) funding model for nuclear, which Linklaters advised the UK Government on developing. The RAB funding model has already been used for other major infrastructure, such as the Thames Tideway Tunnel and London Heathrow Terminal 5. Using the RAB model is expected to further reduce the costs of electricity to consumers, by cutting the cost of new nuclear project finance, which is the biggest driver of nuclear project costs.
Linklaters partner, Maryam Adamji said:
"The transaction is a landmark moment for the UK nuclear sector and a key part in meeting the UK's long-term energy security and net zero ambitions. The Government's investment decision, which follows the passing of legislation enacting the new nuclear RAB model, is a significant milestone in the project's development and its path to raising capital for its construction and operation."
The Linklaters team was co-led by Energy & Infrastructure partners Maryam Adamji and Charlotte Morgan, assisted by associates Lavanya Chawla, Isabella Sullivan and Ho-Yin Lam.
Linklaters' global Energy & Infrastructure practice specialises in large scale, award winning and market-leading energy and infrastructure transactions across the world - covering renewables, nuclear, hydrogen and other decarbonisation/energy transition technologies, infrastructure, batteries, smart meters and storage, water and transport.