Full-scale construction of the planned Sizewell C nuclear project can now proceed after a £5.5bn debt raise with 13 banks completed the financial package for the £38bn construction job.

Sizewell C becomes the first nuclear project in the world financed through private investors under the UK’s Regulated Asset Base model — the same structure used to fund Heathrow Terminal 5 and the Thames Tideway Tunnel.

Construction is estimated to be around 20% cheaper than the near-identical Hinkley Point C project.

The savings will come from using the Hinkley C supply chain and efficiency gains from lessons learned on the delivery.

Construction will now ramp up on the two-reactor plant, which will supply low-carbon power to six million homes for at least 60 years.

Over 10,000 people will work on the project, with 70% of contract value expected to go to UK businesses and 1,500 apprenticeships created.

The RAB model allows regulated revenues during construction, cutting financing costs and consumer bills. Government estimates suggest it will save bill payers £30bn over the project’s life compared with traditional funding models.