EDF and UK-based Centrica are prepared to invest £800m ($1.07bn) to extend the operating life of the Sizewell B NPP in Suffolk to 2055 from 2035, an EDF spokesperson told Reuters. EDF and Centrica are closing in on a draft agreement with the UK government to secure this 20-year lifetime extension.
The proposed funding aims to keep the plant operational, mitigating a projected nuclear generation gap as older advanced gas-cooled reactors face scheduled retirements. Sizewell B is the UK’s only pressurised-water reactor. It delivers 1.2 GWe supplying approximately 3% of the UK’s overall electricity.
The companies are negotiating a Contract for Difference (CfD) framework to minimise market volatility risks. The draft terms propose a long-term power price of roughly £70 per MWh. EDF (80% owner) and Centrica (20% owner) will split the capital expenditure relative to their shares, requiring an estimated £160m million from Centrica.
This extension ensures critical power availability while next-generation facilities, such as the Hinkley Point C under construction in Somerset and the planned Sizewell C plant undergo prolonged development timelines. Financial analysts at Citi have said the rumoured £70/MWh strike price is highly attractive for corporate returns. Market participants are tracking updates closely ahead of Centrica’s upcoming interim financial results scheduled for 23 July.
“Volatility in the energy markets over the past few years has reinforced the importance of securing a suitable model to reduce commercial risks and enable that investment decision,” EDF noted.
