Sizewell B nuclear power station granted 20-year extension generating electricity until 2055

Energy Secretary Ed Miliband said: 'Nuclear power is vital for our energy security'

The Sizewell B nuclear power station has been granted a 20-year extension and will continue to generate electricity until 2055.

The plant, Britain’s only pressurised water reactor, creates enough power for two and a half million homes and meets around three per cent of the country’s electricity needs.

Opened in 1995, the Suffolk power station had been scheduled for closure in 2035.

But a deal has been struck with the Government to extend its lifespan.

Under the new agreement, electricity will cost £70.50 per megawatt hour.

This is less than the £91 average for offshore wind at the last allocation round, to reflect the fact the plant is already fully built and operational.

The deal was struck with owner EDF and Centrica, which holds a 20 per cent stake.

The Government said the deal would reduce the costs of Britain’s energy system, protect billpayers from exposure to volatile fossil fuel markets, power homes with clean energy and maintain 900 skilled jobs in Suffolk.

Previously, the plant was paid the wholesale price for generated power.

The new ‘contract for difference’ will lower costs, the Government believes.

Had it been operating under this kind of deal during the price spike caused by Russia’s invasion of Ukraine consumers would have saved around £2 billion, officials said.

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.”

Chancellor Rachel Reeves added: “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 Government is also backing projects including Britain’s first small modular reactors in Anglesey and the construction of Sizewell C alongside Sizewell B as part of what it says will be a new “golden age” of nuclear.

Work is ongoing on Hinkley Point, the first new nuclear power plant in a generation.

The Somerset facility is due to open in 2030 and, when fully operational, will power six million homes.

Electricity from the new plant will cost around £130 per megawatt hour in today’s terms.