Linklaters has advised the UK Government on all aspects of Sizewell C, achieving financial close. This marks the commencement of revenue flows for the Sizewell C project and its investors, delivering regulated, inflation-linked returns from the first day of investment.
This news reflects a broader resurgence of nuclear energy in Europe. This development comes as several countries seek to modernise their energy mix, strengthen energy security, and ensure reliable low-carbon electricity supplies to support climate ambitions.
Over the last eight years, a multi-disciplinary team at Linklaters has advised Department for Energy Security and Net Zero (DESNZ) across all aspects of Sizewell C, including:
- The development of the new nuclear regulated asset base model (including legislative and regulatory framework) and government support package. This has been key in attracting private capital into the nuclear industry and delivering a new public/private ownership model to deliver Sizewell C;
- The equity raise process, which has seen Centrica, Amber Infrastructure and La Caisse committing equity investment alongside EDF and the UK Government (who will be the largest shareholder in the project with an initial 44.9% stake);
- The development and structuring the debt financing for the project, which comprises £5bn of debt raised from commercial lenders through a BpifranceAE export credit facility, a £500mln Working Capital Facility, and a £36bn term loan facility from the National Wealth Fund; and,
- Advising the UK Government on the construction and supply chain arrangements, anti-trust, subsidy, regulatory and decommissioning arrangements and concerns.
Linklaters has been at the heart of developing RAB models for major infrastructure projects, having led on the development of the Thames Tideway RAB model, recently advising on both the HyNet and Northern Endurance Partnership Projects (which adopted the CCUS RAB model), and now the Sizewell C RAB model.
Charlotte L Morgan, Energy & Infrastructure Partner at Linklaters, commented:
“We are proud to have supported the UK Government on this significant step for both domestic energy security and the UK’s net zero journey. Sizewell C will play an important role in delivering reliable, low-carbon electricity for generations to come. We are delighted to have contributed to developing the legal and regulatory structures to make this pivotal investment a reality and to help secure a low carbon energy future.”
Maryam Adamji, Energy & Infrastructure Partner, commented:
“The transaction is a landmark moment for the UK nuclear sector and a key part in meeting the UK’s long-term energy security and net zero ambitions. The transaction demonstrates the multi-disciplinary strength of the Linklaters team and we are delighted to have supported the UK Government in reaching this historic milestone.”
Rasha Sami, Energy & Infrastructure Counsel at Linklaters, commented:
“Delighted to see the hugely important Sizewell C project reach financial close. It’s been a pleasure to work with the DESNZ and Ofgem teams to develop a bespoke RAB and government support regime which ultimately attracted significant private capital. This transaction reinforces the growing appeal of the RAB model to support the delivery of major infrastructure projects.”
The Linklaters team was led by Energy & Infrastructure Partner Charlotte L Morgan, alongside Partners Maryam Adamji and Stephen Le Vesconte, with support from Counsel Rasha Sami and Gitanjali Shankar, and Managing Associates Karen Clarke, Imogen Ormerod and Jamie McPhie.
