Sizewell C uncertainty mounts as potential backer rules out support for nuclear plant

L&G has not spoken publicly about its plans but according to the Telegraph,  one of its investment service consultants said in a written response to a pension-holder: “I have had it confirmed that Legal & General will not be investing in the Sizewell C nuclear power plant.”

EDF is looking for backers for the £20bn scheme and is currently in negotiations with the government about taxpayer support.

But the project will also need institutional investors, which EDF argues can make stable returns over the decades of a reactor’s life. L&G declined to comment.

It comes after Aviva Investors refused to say whether it would back new power stations due to environmental concerns.

Aviva Investors said nuclear’s environmental, social and corporate governance impact was “far from clear at this time”.

But the government has signalled that large nuclear power projects do have a future in the UK, with prime minister Boris Johnson backing them in his 10 point plan for a green industrial revolution before including nuclear developments in the Energy White Paper.

The government has also said it is still very "keen" to find a developer for the proposed Wylfa Newydd nuclear power station on Anglesey.

Horizon Nuclear Power officially withdrew its planning application for Wylfa last month. Horizon’s parent company Hitachi had announced in September that it was pulling out of the project, after funding talks with the government broke down.

Horizon's subsequent talks with interested parties about taking over the Anglesey power station did not lead to definitive proposals but a Bechtel-led consortium remains in talks with the government about delivering a nuclear power plant on the site.

Energy & Climate Intelligence Unit analyst Jess Ralston has said the setbacks for Wylfa and Hinkley Point C's recent cost rise has added to the "uncertainty" surrounding the funding of the nuclear industry.

It is unclear what the latest delay for Hinkley might mean for Sizewell - which will be a Hinkley replica - but Ralston emphasised that “if they’re going to base Sizewell on Hinkley they’re going to have to have an example up and running to do that”.

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