British energy supplier Centrica is prepared to “walk away” from a planned investment in the Sizewell C nuclear plant, according to its chief executive.
In an exclusive interview with Energy Voice, Centrica chief executive Chris O’Shea said “there are a number of criteria we have to consider to invest in the project”.
“We’ve said that we are part of the Sizewell C process but there are a number of criteria we have to consider to invest in the project,” O’Shea said.
“If these are not met, the right thing to do would be to walk away to protect the business.”
French energy company EDF plans to expand the existing Sizewell nuclear power stations in Suffolk with a third reactor, Sizewell C, which is expected to produce enough electricity to supply six million homes and meet 7% of the UK’s energy needs.
EDF said the project would support up to 70,000 jobs in the UK and 1,500 apprenticeships in East Suffolk.
Earlier this month, Centrica extended the lives of four operational advanced gas-cooled nuclear power stations alongside EDF.
At the time, EDF also said it had installed the UK’s first reactor in over 30 years at Hinkley Point C, as it forged ahead with its nuclear ambitions.
The UK-based supplier owns a 20% stake in the nuclear power stations, amounting to a 9 terawatt-hour capacity out of a total of 45 TWh.
“When the conditions are right, we’ve seen how good investing in nuclear can be for Centrica,” said O’Shea.
He added that access to that nuclear power capacity “will be very valuable to the company and to the UK’s energy system”.
“New nuclear will play a crucial role in the future energy system, however we will only invest if the risks-and-rewards balance is right for us,” he said.
“If it is not right for us, we will not invest.”
Chancellor Rachel Reeves confirmed £2.7 billion of funding for the development of Sizewell C in October’s Autumn Budget.
Energy Secretary Ed Miliband also recently said that a final investment decision on whether to proceed will be taken at the government’s spending review, which is expected in June 2025.
“There are obviously already hundreds of workers on the Sizewell site,” he said, while speaking at a nuclear energy event in London. “The equity and debt raise process will shortly move to its final stages.”
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