The sector failed to attract sufficient investment under its old model, which required developers to finance the entire construction, meaning they would only start receiving revenue when the station started generating electricity. This led to the collapse of potential projects, including Hitachi’s project at Wylfa Newydd in Wales and Toshiba’s at Moorside in Cumbria. The government hopes its new plan, a so-called regulated asset-based (RAB) financing model it is currently consulting on, will attract a wider pool of investors to fund nuclear power projects. Under the new model, companies building new units will be paid during the construction phase, limiting their development risk and allowing them to secure cheaper financing for the projects. Ministers have also hired Barclays to lead the hunt for private investors to finance the remaining 60% of Sizewell C. But many institutional investors remain unconvinced. A City insurer chief executive says he has regular talks with the government about backing nuclear projects, adding that while he is open to the idea, the investment case remains hard to justify. Lockwood says the RAB is a “smart idea” as it will help reduce the cost of capital, but only by about 10%. “I don’t think it will be the silver bullet the government is looking for,” he adds. Whether or not Sizewell C eventually gets the go-ahead, it won’t be a solution to the looming energy crisis this winter. Sharples says: “You can put it in the long-term strategic basket rather than the short-term winter basket.” But the government is determined to make nuclear power central to its long-term energy security plan, with Liz Truss mentioning it in her first appearance in Parliament as prime minister. In February, Macron said: “It’s time for a nuclear renaissance.” This may be the case in France, but if EDF cools off over Sizewell C, then the UK’s nuclear revival will struggle to get off the ground.
