The UK government has agreed terms with EDF to extend the operational life of the Sizewell B nuclear power station by 20 years, allowing the Suffolk facility to continue generating electricity until 2055.
The agreement is intended to strengthen the UK’s long-term energy security, reduce exposure to volatile fossil fuel prices and preserve around 900 skilled jobs at the site, while supporting domestic nuclear supply chains.
Currently supplying around 3% of the UK’s electricity, Sizewell B generates enough low-carbon electricity to power approximately 2.5 million homes. The government said keeping the plant online for an additional two decades will reduce overall energy system costs compared with replacing its output using alternative generation technologies.
The extension forms part of the government’s wider strategy to expand the UK’s nuclear capacity, alongside the development of Sizewell C and the deployment of the country’s first small modular reactors.
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.”
Under the agreement, the government and EDF have agreed terms for a 20-year Contract for Difference (CfD) beginning in 2035, when the plant had originally been scheduled to close. The contract has been agreed at £70.50/MWh in 2025 prices, with support and investment from Centrica.
The government estimates that the agreement would have saved consumers around £2bn had it been in place during the energy price crisis that followed Russia’s invasion of Ukraine.
The extension is also expected to provide long-term certainty for the UK’s nuclear workforce and supply chain. The government said retaining Sizewell B’s operations will help preserve specialist skills and sustain domestic capability across the nuclear sector, which the Nuclear Industry Association estimates supports nearly 100,000 jobs nationwide.
Chancellor Rachel Reeves said: “Sizewell B is a vital part of Britain’s energy future, and this agreement secures clean, homegrown power for millions of homes until 2055.
“It is also a real vote of confidence in the hundreds of skilled workers in Suffolk who will power Britain’s clean energy future, delivering the long-term certainty that businesses and workers need.”
The announcement comes as the government continues to invest in a new generation of nuclear infrastructure, including Sizewell C—which is expected to generate enough electricity for the equivalent of six million homes and support up to 17,000 jobs during peak construction—and the rollout of small modular reactors as part of its wider clean energy ambitions.
Tom Greatrex, Chief Executive of the Nuclear Industry Association, said: “Sizewell B is the cleanest, most productive and most reliable plant in the whole country, so extending its life is one of the best things we can do to build an affordable and reliable clean power system. It will provide the vital baseload we need to stabilise the grid, cut gas imports, and cut bills.
“Nuclear makes a unique and irreplaceable contribution to our energy security, so we should also continue to deploy new nuclear projects, to renew the benefits from clean, secure and reliable electricity for decades to come.”
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