EDF reportedly ready to pull out of Sizewell C nuclear project.

Unions have warned that the UK’s nuclear future with EDF will be at risk if the government investment decision for the project is delayed.

EDF is prepared to withdraw from Sizewell C unless the Government makes an investment commitment in the coming weeks.

The French energy giant is growing increasingly frustrated with Whitehall, sources said. It will consider withdrawing if there are delays to finalising a crucial milestone called a government investment decision (GID).

This would be a firm commitment to the UK taking a stake and cement its support for Sizewell C. Sizewell C is the only new large-scale nuclear project ministers have said they want to pursue.

Weeks

It has been reported that EDF’s internal funding for Sizewell C could run out in a matter of weeks.

Some of the UK’s biggest unions sent a letter to the Business Secretary. The letter warns the future of the plant will be in jeopardy if the government delays a GID.

The letter said: “We have been made aware through discussions at the European Works Council that EDF Energy’s commitment to this project will not be sustained in the absence of a prompt GID.

“We sincerely believe that unless this matter is resolved in the next few weeks, the UK’s nuclear future and the jobs and the skills of tens of thousands of nuclear workers will be at risk.”

Advancing

Last week, the government announced it was advancing plans for funding new nuclear projects. That includes consulting on draft reasons for designating the Sizewell C project.

The financing model aims to offer investors greater certainty through a lower and reliable rate of return. This would be during the early stages of the project while lowering the cost of financing.

This decision is expected to provide a clear message that the government fully supports the project. In turn this will enable the French energy giant to approach investors.

Energy Security Strategy

An EDF spokesperson told Energy Live News: “EDF is committed to the Sizewell C project, which is a key part of the government’s British Energy Security Strategy. We are continuing discussions on financing, including potential government investment in the project.

“The project is making strong progress. Government has made important progress on RAB designation, we have appointed an independent chairman and an imminent decision is expected on the Development Consent Order.”

A decision would pave the way for EDF to approach investors and markets to help fund the development of the Suffolk plant, due to start producing energy in the early 2030s.

Although this could be renewed, the cut-off is piling more pressure on the UK. A source said the 'tone is changing' in Paris. The company wants to see a decision made before Parliament's summer recess begins on July 21.

A separate planning decision, which also needs to be cleared before EDF can speak to investors, is due on July 8.

Chinese state nuclear energy group CGN has been developing Sizewell C with EDF. But it is not expected to continue with the project in the next phase.

A government spokesperson said: “We remain in active and constructive negotiations with EDF in relation to Sizewell C.

“Nuclear power has a key role in our transition to cleaner and cheaper energy as set out in our British Energy Security Strategy.

“Only last week we set out further detail on the progress we are making on the new Regulated Asset Base finance model to mobilise private investment into this sector.”

An EDF spokesperson told Energy Live News:

“EDF is committed to the Sizewell C project, which is a key part of the government’s British Energy Security Strategy. We are continuing discussions on financing, including potential government investment in the project. We are optimistic about the outcome.

“The project is making strong progress. The government has made important progress on RAB designation, we have appointed an independent chairman and an imminent decision is expected on the Development Consent Order.”