The government has begun talks with EDF about the construction of a new £20bn nuclear power plant in Suffolk.
The Sizewell C site could generate 3.2 gigawatts of electricity, enough to provide 7% of the UK’s needs.
But it has proved controversial with campaigners saying it is “ridiculously expensive” and that taxpayers will have to foot the bill for extra costs.
The government said any deal would be subject to approval on areas such as value for money and affordability.
EDF, the French energy giant, is also building the Hinkley Point C nuclear energy plant in Somerset in partnership with China General Nuclear Power.
The government said talks with EDF about Sizewell C would depend on the progress of the Hinkley Point C. However, that project is set to cost up to £2.9bn more than originally thought and will be up to 15 months late.
China General Nuclear Power has a 20% stake in Sizewell C but is thought to be planning to pull out after security concerns were raised about a Chinese state-owned company designing and running its own design nuclear reactor on UK soil.
If it does pull out, it would increase the need for new investors. One option could be for the government to take a stake in the plant.
Monday’s announcement is part of the long-awaited Energy White Paper, which ministers say will support up to 220,000 jobs over the next decade.
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The paper sets out specific steps to cut emissions from industry, transport and buildings.
The policies should remove 230 million metric tonnes of emissions, which is equivalent to taking 7.5 million petrol cars off the road, the government says.
The paper outlines a policy to boost competition in the energy retail market to tackle the “loyalty penalty” in which long-standing customers pay more than new ones.
It will also provide at least £6.7bn in support to the fuel poor and most vulnerable over the next six years.Government in talks to fund £20bn nuclear plant.
