LONDON: Centrica plc has announced a £1.3 billion investment for a 15% equity stake in Sizewell C, a new nuclear power station in Suffolk expected to power six million UK homes. The acquisition positions Centrica alongside HM Government, La Caisse, EDF, and Amber Infrastructure Group, marking one of the largest clean energy investments in a generation.
The deal leverages the Regulated Asset Base (RAB) model, offering inflation-protected returns with a 10.8% allowed equity return during construction. Centrica forecasts an IRR exceeding 12%, with its equity value projected to reach £3 billion at commercial operations. An initial 20-year offtake agreement will also grant Centrica access to power from the facility, reinforcing its route-to-market strategy.
Revenue Commencement is expected in Q4 of this year, following final procedural steps and governmental approval. The £38 billion project will be regulated by Ofgem post-construction and aligns with Centrica’s £4 billion green investment strategy.
“This is not just an investment in a power station—but in Britain’s energy independence and net-zero journey,” said CEO Chris O’Shea.
Chancellor Rachel Reeves praised the investment as “a powerful endorsement of the UK as a global hub for nuclear energy,” while Sizewell C directors called it “the biggest investment in clean, homegrown energy in a generation.”