Sizewell C Switch

Slaughters, DLA, Freshfields, and Linklaters have played instrumental roles in finalizing the £38 billion investment deal for the Sizewell C nuclear power plant, one of the largest and most significant infrastructure projects in the UK. This complex transaction marks a critical milestone in securing funding and moving forward with the construction of the long-awaited Sizewell C plant, which is expected to significantly contribute to the country’s future low-carbon energy supply. The deal involved a diverse coalition of stakeholders, including the UK Government and several major private investors such as EDF Energy, La Caisse de dépôt et placement du Québec, Centrica, and Amber Infrastructure. Together, they reached an agreement that effectively doubled the initial estimated cost of the project from approximately £20 billion to £38 billion, reflecting both the scale and the complexities involved in delivering a cutting-edge nuclear facility.

Among the law firms involved, Linklaters notably advised the UK Government on its equity acquisition, ensuring that the government’s investment was structured to provide both majority ownership—roughly 44.9% of the project—and protect public interests throughout the project's lifecycle. Slaughters previously earned significant legal fees advising on similar large-scale nuclear projects, such as Hinkley Point C, bringing deep nuclear sector expertise to this latest deal. Freshfields and DLA Piper contributed essential legal counsel on various financing, regulatory, and commercial elements, helping to navigate the stringent compliance and contractual requirements imposed by nuclear regulations and government funding frameworks. The legal teams’ collective efforts were essential in aligning the interests of public and private partners, negotiating risk allocation, financing structures, and ensuring robust governance practices.

The Sizewell C financing model is a hybrid public-private partnership, backed in part by the UK Government’s National Wealth Fund, a vehicle designed to support large infrastructure investments while spreading financial risk across taxpayers, electricity consumers, and private investors. This structure aims to incentivise private sector involvement while securing public ownership stakes to maintain strategic control over the country’s nuclear energy capacity. The involvement of prominent institutional investors such as La Caisse and Amber Infrastructure highlights the growing appetite for sustainable, long-term infrastructure investments amid the global transition to clean energy. For the government, Sizewell C represents a critical commitment to enhancing energy security, reducing carbon emissions, and meeting ambitious net-zero targets.

Ultimately, the successful closing of the £38 billion Sizewell C deal, facilitated by the expertise of Slaughters, DLA, Freshfields, and Linklaters, unlocks the path for the detailed technical and construction phases to proceed. The project is expected to take approximately a decade to complete, involving thousands of jobs and supporting numerous supply chain companies across the UK. By steering this unprecedented legal and financial transaction, these top-tier law firms have helped bridge the enormous gap between public policy objectives and viable commercial investment structures, ensuring that Sizewell C can be delivered as a cornerstone of the UK’s clean energy future.