Centrica Shares Jump: Acquires 15% Stake in Sizewell C

Centrica’s (LON: CNA) share price rose more than 3% in early Tuesday trading after the company announced a £1.3 billion investment for a 15% equity stake in Sizewell C, a major nuclear power project under development in Suffolk.

On a technical level, the CNA share price had recently pulled back. However, on Monday, it bounced off a key trendline on the daily chart. In early Tuesday trading, it hit a high of 167.35p.

Centrica joins a consortium that includes the UK government (44.9%), La Caisse (20%), EDF (12.5%), and Amber Infrastructure Group (7.6%). 

The company stated that it anticipates its equity share of the regulated asset base will increase to approximately £3 billion upon the plant's commercial operation.

The deal is structured under the Regulated Asset Base (RAB) model. This is said to offer inflation-linked returns and incentives for on-time, on-budget delivery. 

Centrica anticipates an internal rate of return of over 12% in its base case scenario.

Chief Executive Chris O’Shea called the investment a “milestone.”

“This isn’t just an investment in a new power station – it’s an investment in Britain’s energy independence, our net zero journey, and thousands of high-quality jobs across the country,” he added.

Revenue commencement is expected in the fourth quarter of 2025, pending regulatory approvals. 

Once operational, Sizewell C is expected to generate enough electricity equivalent to approximately 7% of the UK's current demand. This should help to bolster the country’s baseload capacity as more intermittent renewables come online.

Chancellor Rachel Reeves called the investment “a powerful endorsement of the UK as the best place to do business and as a global hub for nuclear energy.”