Milestone moment for Sizewell B life extension agreement
EDF and the UK Government have signed the Heads of Terms for a Contract for Difference (CfD) agreement which will extend the life of Sizewell B in Suffolk, likely to secure safe and clean power generation and 900 jobs for longer.
Since its commissioning in 1995 the station has produced more than 270 Terrawatt hours (TWh) of low carbon electricity - that’s enough to meet the needs of every household in Suffolk and Norfolk for more than 100 years - but it had been due to stop generating in 2035. Now Heads of Terms have been signed on a CfD to extend the lifetime out to 2055, with EDF funding a major refurbishment of the nuclear power station during planned outages over the next fifteen years, costing around £800 million.
The proposal covers the period from 2035 to 2055 and includes a strike price of £70.50/MWh (2025 prices). Sizewell B produces baseload power, available 24/7 in all weather conditions. Extending the operational life of the station is a cost-effective way to increase the UK’s sovereign clean energy generation. UK Government and EDF are expected to finalise this CfD later this year.
EDF UK CEO Simone Rossi said: “Global events demonstrate time and again how vital it is for the UK to secure long term, low-carbon, homegrown electricity which protects British households and businesses from market volatility. Extending the life of the plants we already have alongside building new ones is central to EDF’s strategy.”
Energy Secretary Ed Miliband said: “Nuclear power is vital for our energy security, and this extension will help produce the clean power our country needs.”
Minister for Science, Innovation, Research and Nuclear Lord Vallance said: “This deal protects billpayers and boosts the country’s energy security by continuing to provide clean, secure power for millions of households. By backing Sizewell B, we are delivering a golden age of nuclear and maintaining 900 skilled jobs in Suffolk.”
