UK announces new financing model for nuclear projects

The UK government has put into place a new financing model for nuclear projects. The Sizewell C plant in Suffolk is the first test case of what is being referred to as the Regulated Asset Base (RAB) model. The model prior to this worked on the expectation that revenues follow from electricity generation, and the capital cost of constructing the project was paid by developers. However, the government says that under the RAB model "projects receive a regulated payment from electricity suppliers, helping these large infrastructure projects come to fruition". The new model is part of the UK government’s broader goal of delivering eight new reactors by 2030.