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Written Evidence Submitted by Sizewell C Introduction and Reason for Submitting

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Written Evidence Submitted by Sizewell C Introduction and Reason for Submitting GRJ0061 Written evidence submitted by Sizewell C Introduction and Reason for Submitting NNB Generation Company (SZC) Ltd is proposing to build and operate a 3.2 GW new nuclear power station, Sizewell C (“SZC”), comprised of two UK EPR™ units. Once operational, SZC would be able to generate enough electricity to supply approximately six million (or about 20%) of Britain’s homes. The Project is a designed to be replica of EDF’s Hinkley point C (HPC) project utilising the same above ground design and ensuring the learning and knowledge is transferred between projects by replicating the key suppliers. SZC is currently in its developmental stage; its planning application has been accepted for examination by the UK’s Planning Inspectorate. Since the inclusion of new large nuclear as part of the recent Energy White Paper as an important component of the mix to reach Net Zero, the Project is preparing for active engagement with Government to agree an efficient funding model that secures finance at a low cost of capital and delivers value for money to consumers and taxpayers. Unlike the HPC Project, SZC will not be majority owned by EDF after FID instead and thus will be an independent company. SZC is targeting a start of construction in 2022. The Sizewell C (SZC) Project is inherently a green infrastructure project given the low carbon electricity it will produce. It is estimated that SZC will save around 9 million tonnes of CO2 in every year of operation when compared to a gas plant of equivalent scale. The Project takes its Environmental, Social and Governance (ESG) responsibilities seriously and believe Sizewell C has a strong role to play as part of a Green Recovery from Covid-19, delivering green jobs up and down the UK supporting levelling up but also with a strong local focus. As such we are delighted take this opportunity to present evidence to the Environmental Accounts Committee (EAC) about the benefits the project can bring but also some of the challenges faced by the nuclear industry and wider energy sector in relation to skills and training. Answers to Inquiry Questions 1. What estimates are there for the jobs required to meet the pathway to net zero emissions, by sector, and other environmental and biodiversity commitments? N/A 2. Does the UK workforce have the skills and capacity needed to deliver the green jobs required to meet our net zero target and other environmental ambitions (including in the 25-year environment plan)? New nuclear generation (as well as the existing operating power stations) is an important component of the future decarbonisation of the UK in the transition to a Net Zero energy mix, by providing low carbon firm power generation and also has potential to utilise low carbon heat from generation for further decarbonisation applications. The Sizewell C (SZC) project presents a great opportunity (if it starts construction soon) to ensure Britain’s nuclear skills and capability are maintained and enhanced. However, having not built a nuclear power station for around 20 years prior to Hinkley Point C (HPC) which is currently under construction, were SZC not to go ahead the UK faces a risk that UK nuclear skills and supply chain capacity would reduce (see answer to Question 3) and have a negative impact on the delivery of this rollout. This skills and capacity gap (or potential future gap) is both from a technical standpoint e.g. nuclear engineers but also within the nuclear supply chain where safety measures require supplier qualification and stringent quality control which takes time and investment to ensure compliance and competency. It is also very important that understanding and experience of the specific UK nuclear regulatory regime is embedded within developers and the supply chain. Building a new nuclear power station also requires significant multidisciplinary working, requiring a highly skilled workforce from across a multitude of GRJ0061 professions. We anticipate that the significant investment required to meet Net Zero will place pressure on some of those skilled professions, many of whom will work in a variety of sectors, both in the energy sector, but also in other environments such as transportation. HPC has worked hard to resurrect the UK’s nuclear supply chain and has a target of 64% of its contracts by value being undertaken by UK suppliers, with a variety of skills, education and training initiatives including a target of 1,000 apprenticeships. HPC has also benefitted substantially from the existing UK nuclear skills base within the operating fleet. As a follow on to HPC, Sizewell C is able to help further address the UK skills shortage, building on the work done by HPC and targeting 70% of contracts by value at UK suppliers, bringing more jobs to the UK (for example skilled engineering jobs in the form of the UK EPR Centre) and engaging 1,500 apprentices. The timing of SZC creates a natural bridge for people and companies to move from HPC to SZC. This will preserve and enhance the UK nuclear skills and capacity that is both being developed at HPC and currently in place at the existing UK fleet. This skills and capacity could subsequently move to the new nuclear projects that follow SZC (GW, SMR, Amr and fusion) helping to ensure the efficient delivery of the new nuclear capacity the UK needs. The enhanced UK capabilities also provide an opportunity to increase the UK content of future new build. On the other hand, if SZC does not proceed a significant gap between new build projects will open (between completion of HPC and the start of the next project). If this gap arises, it is likely that UK nuclear skills and capacity will decay as people and companies leave the industry, retire or move abroad and thus the UK loses the benefits of the HPC experience over time. These negative impacts will be compounded by the gradual closure of most of the existing fleet over the 2020s. This will pose challenges to the next new build project(s) in the UK that follow HPC and represents a lost opportunity to capitalise on the momentum being built at HPC. Such a scenario would also likely mean lower UK content for the future projects. 3. What needs to be done to ensure that these skills and capacity are developed in time to meet our environmental targets? In order to ensure the skills and capability described above are developed in time to meet environmental targets, it is critical that SZC receives the relevant approvals to start construction in a timeframe that allows continuity with HPC. The Government’s recent Energy White Paper is welcomed as a starting point towards a clear, coherent Net Zero strategy. By setting out a pipeline of projects to meet this objective developers and suppliers can have confidence to invest in the skills and capability required to deliver such projects and programmes. Replication is the key strategy for SZC to de-risk delivery, enhance efficiencies and reduce costs. This means replicating not only the core design from HPC but also the supply chain and know- how to construct it. However, to ensure these benefits are maximised it is important that the project is approved in a timely fashion. There are also opportunities to build EPRs at other sites. By engineering the substructure to support the replicated above ground design, the UK EPR design therefore now has the potential to be replicated at further suitable licensed sites. Moorside in Cumbria has been identified as a potential site for further UK EPR project with proposals to include this as part of an integrated Clean Energy Hub.1 By providing the strategy and pipeline of projects for Net Zero and agreeing and demonstrating that supplier replication offers the best value for money, the greater certainty provides an opportunity to work with the supply chain to further enhance UK nuclear skills and capability given the time and investment required to do so. However, without a clear pipeline it is likely that 1 https://www.edfenergy.com/energy/nuclear-new-build-projects/sizewell-c/news-views/edf-joins-major-companies-unions- to-promote-moorside-clean-energy-hub GRJ0061 many jobs will be lost. Sizewell C’s proposed suppliers who have come together to form the SZC Consortium have estimated that around 10,000 permanent jobs are at risk if SZC were not to go ahead.2 According to a 2020 study undertaken by the CBI and Oxford Economics, every £1 spent on construction creates £2.92 of value to the UK economy3. Megaprojects like Sizewell C have a unique opportunity to use their purchasing power as a catalyst for change, but it is vital that the regulatory and political framework recognise that the concept of measuring value for money should take account of the broader social value created, rather than simply seeking lowest cost. Developing the UK’s USP in delivering net zero has the potential to positively impact our exporting capabilities, but if we do not capitalise on home-grown talent, we lose the ability to diversify and innovate. Industry needs a pipeline upon which it can rely and invest in its future. Sizewell C is planning to invest in skills interventions to enhance UK capability and capacity. These will collectively provide a pipeline of young people, new entrants and talent into effective and innovative training interventions, which will lead to sustainable employment in new and emerging green jobs. They will include: A Jobs Service – to build a talent pool of local and UK people to fill the vacancies created by SZC supply chain An Education Programme and a Skills Prospectus for Green Jobs – A comprehensive programme of Education and interventions designed to inspire young people and new entrants.
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