Centrus acted as financial and commercial adviser to DESNZ on the Sizewell B Life Extension

Transaction overview

Centrus formed part of the advisory consortium led by PA Consulting supporting the Department for Energy Security and Net Zero on the commercial and financial structuring of the Contract for Difference underpinning Sizewell B nuclear power plant’s 20-year life extension.

Centrus has acted as financial and commercial advisor to the Department for Energy Security and Net Zero (“DESNZ”) on the setting of the Contract for Difference (“CfD”) strike price and developing the support package for the life extension of Sizewell B, working as part of an advisory consortium led by PA Consulting. The announcement coincides with DESNZ’s announcement of the agreement reached with EDF and Centrica to extend the plant’s operating life by 20 years, from 2035 to 2055.

The agreement, backed by an estimated £800 million investment programme, establishes a long-term CfD revenue mechanism intended to reduce exposure to wholesale electricity price volatility and to support the extension of one of Britain’s most important sources of low-carbon baseload power.

Centrus and PA supported DESNZ with the financial modelling, commercial negotiations and structuring of the financial support package. Centrus and PA provided advice on gainshare mechanisms, gearing, interactions between mechanisms and benchmarking against precedent projects, to facilitate negotiations between DESNZ and EDF.

“Being able to support DESNZ on such a nationally significant project reflects the depth of expertise Centrus brings to UK energy infrastructure. The Sizewell B life extension secures a critical source of low-carbon power for the next two decades, and we were pleased to work alongside PA Consulting and DESNZ’s team to help deliver this extension investment.”

Adam MacDonald, Managing Director – Centrus

For more information, please contact Adam MacDonald, Managing Director, Centrus

Back to Credentials

• 
• 
•