By Noor Nanji, Business Reporter, BBC News
Prime Minister Boris Johnson has pledged £700m for a new nuclear power plant on the Suffolk coast, with a call to “go nuclear and go large and go with Sizewell C”.
In a speech at Sizewell, the PM said he is “confident” the plant will go ahead. The project, which is being developed by French energy company EDF, is estimated to cost about £20bn overall.
The government gave the go-ahead for the plant in July with negotiations on raising funds continuing.
Mr Johnson said the war in Ukraine, which has pushed up gas prices, had demonstrated the need for new nuclear generation capacity in the UK.
In his final major policy speech before he leaves office, Mr Johnson argued the reluctance of previous governments to back nuclear energy had helped drive up bills.
He described the problem as “myopia”, adding: “It is called short-termism. It is a chronic case of politicians not being able to see beyond the political cycle.”
“Let’s think about the future, let’s think about our kids and our grandchildren, about the next generation,” he said.
“And so I say to you, with the prophetic candour and clarity of one who is about to hand over the torch of office, I say go nuclear and go large and go with Sizewell C.”
The Sizewell C project is expected to generate about 7% of the UK’s electricity needs and operate for 60 years.
IMAGE SOURCE, SIZEWELL C It would be built next to the existing Sizewell B, which is still generating electricity, and Sizewell A, which has been decommissioned.EDF has said the plant could generate 3.2 gigawatts of electricity, enough for about six million homes.
“We need to pull our national finger out and get on with Sizewell C,” the outgoing PM said.
“That’s why we’re putting £700m into the deal, just part of the £1.7bn of government funding available for developing a large-scale nuclear project to final investment stage in this parliament.
“In the course of the next few weeks I am absolutely confident that it will get over the line.”
NEWS ANALYSIS
Today’s speech from Boris Johnson would have been significant had he been able to announce the deal to build a new nuclear power station had been sealed.
But he can’t, and the £700m he is pledging is considered to be too small a sum to guarantee the participation of private investors and EDF.
So why do it? The £700m comes from a £1.7bn fund for nuclear already agreed by the cabinet – so he can’t be accused of entering into new financial arrangements which would bind the hands of his successor.
Whether the project goes ahead will be up to the new occupant of No 10.
But he was issuing a statement of intent – and making it more difficult, should his successor wish, to back out.
While his speech largely blamed Labour for “myopia” on energy, it seemed to contain a coded message to the next PM not to put new domestic projects on hold while dealing with the short term, but severe, challenge of soaring bills.
Both candidates are committed to new nuclear.
But if they are tempted to delay, Boris Johnson can make it clear that is one thing that he can’t be blamed for.
