Source: Sharecast
The decision will see the nuclear power plant continue operating until 2055 as part of ongoing moves by the government to cut the UK’s emissions. The Suffolk-based 1.2GW plant provides around 3% of the UK’s total electricity needs with zero carbon.
Under the heads of terms, the government has agreed a guaranteed strike price of £70.50mwh between April 2035 to March 2055 for the electricity Sizewell B produces, based on 2025 prices and indexed to CPI inflation.
Sizewell, which includes the new Sizewell C reactor currently under construction, is owned by French state energy firm EDF and Centrica, which holds a 20% stake.
Chris O’Shea, chief executive of the British Gas owner said: "Sizewell B is critical to delivering the reliable, zero-carbon baseload power that supports Britain’s energy security. We welcome the constructive engagement with government in reaching this agreement, providing the certainty need to support the required investment.
"This further strengthens Centrica’s portfolio of long-term infrastructure assets with predictable earnings, which includes the neighbouring new nuclear power plant station Sizewell C."
Simone Rossi, chief executive of EDF UK, said: "Extending the life of the plants we already have alongside building new ones is central to EDF’s strategy."
Energy secretary Ed Miliband said the extension would "help produce the clean power our country needs".
With the exception of Sizewell B, all of Britain’s ageing nuclear power plants are due to close by spring 2030. Two replacements, Hinkley Point C in Somerset and Sizewell C, are scheduled to come online over the next decade.
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