UK, EDF agree Sizewell B life extension

The UK government and EDF have agreed heads of terms to keep the Sizewell B nuclear power station operating for an additional 20 years, extending its life to 2055. The agreement is intended to secure continued operation of the plant beyond its original closure date while maintaining its role in the national power system.

Sizewell B is currently responsible for roughly 3% of the United Kingdom’s electricity supply, which is described as enough to power about 2.5 million homes. Keeping the station online for longer is therefore positioned as significant for maintaining a large source of low-carbon, always-on electricity.

A central element of the agreement is a 20-year Contract for Difference (CfD) for Sizewell B. The CfD is set at £70.50 per megawatt-hour in 2025 prices, with price support scheduled to commence from 2035, which aligns with the plant’s original planned closure date.

The CfD structure is intended to provide long-term revenue certainty for the plant by guaranteeing a fixed price level for electricity output over the duration of the contract. This framework underpins the economic case for the investment needed to operate the reactor through to 2055.

Centrica, which holds a 20% equity stake in Sizewell B, has agreed to provide the support and investment required for the station to continue running to 2055. This commitment aligns the interests of the minority shareholder with the long-term operating plan for the site.

With Centrica’s involvement confirmed alongside EDF, the ownership group is positioned to fund the life-extension programme that will be necessary to keep the reactor compliant with safety and performance requirements over the extended period.

The extension plan is expected to support around 900 skilled nuclear jobs at the Sizewell B site. Maintaining this workforce underpins ongoing operations, maintenance and safety functions required for long-term nuclear generation.

By extending Sizewell B’s life, the UK retains a single plant that currently accounts for about 3% of national electricity production. This contribution is framed as an important element of a low-carbon, homegrown electricity mix that supports energy security.

EDF UK chief executive Simone Rossi and Centrica chief executive Chris O’Shea have welcomed the agreement, highlighting that it secures long-term, low-carbon electricity and supports jobs. However, the current arrangement is a non-binding Head of Terms.

The deal will only become fully effective once a detailed long-form contract has been developed and all necessary regulatory approvals have been obtained. Until those steps are completed, the extension framework remains subject to finalisation.