The UK’s Department for Energy Security and Net Zero has secured significant legal and financial advisory support for the development and financing of the Sizewell C nuclear power plant, marking a major step in the government’s efforts to revive the domestic nuclear sector. Expected to be operational by 2039, Sizewell C is the second large-scale nuclear power project initiated in the UK in recent years.
Financial close on the project was achieved in November 2025, with the construction cost estimated at approximately £38 billion in 2024 prices. A notable feature of Sizewell C is its use of the regulated asset base (RAB) funding model, applied for the first time to a UK nuclear project. This approach, commonly used in other UK utility sectors, enables investors to begin earning returns during the construction phase, with the costs recouped through charges on consumer bills prior to the plant’s completion.
Legal advisors Herbert Smith Freehills Kramer played a key role in guiding two groups of investors on the financing arrangements. Canadian pension fund manager La Caisse has acquired a 20 percent equity stake by investing £1.7 billion, while a syndicate of 13 commercial lenders is providing £5.5 billion in debt financing, supported by Bpifrance, France’s export credit agency. Other equity stakeholders include Centrica, EDF of France, and fund manager Amber Infrastructure. The UK government remains the primary lender through its National Wealth Fund, committing up to £36.6 billion.
The advisory services encompassed critical issues such as licensing, liability, and decommissioning, designing financing structures to mitigate the high risks typical of nuclear energy projects while appealing to private investors and lenders.
Elsewhere in Europe, legal firm Cobalt successfully assisted renewable-energy developer Evecon in amending pending Estonian legislation to allow changes in technology specified in existing grid connection agreements. This legislative adjustment facilitates the redirection of grid capacity towards projects such as battery storage, aligning with shifting market demands. The amendment prevents the necessity for developers to forfeit existing connections and submit new applications, thereby avoiding potentially significant costs.
Other notable infrastructure projects highlighted include the £3 billion Haweswater aqueduct reconstruction in northwest England, with legal advice provided to Cascade Infrastructure on a bid approved under a revamped competitive framework by the UK water regulator Ofwat. Work is slated to start in late 2026.
In Germany, Hengeler Mueller supported Tennet, the Dutch state-owned transmission system operator, in securing €9.5 billion for expanding the country’s high-voltage grid. The legal team helped structure the financing to address regulatory concerns about separating generation and transmission assets.
In the UK, Dentons advised the Ministry of Housing on issuing a Special Development Order that accelerates planning approval for a Universal theme park set to open in 2031 under US entertainment group Comcast.
In Portugal, Ecija represented a European data centre operator in financing a €7 billion facility expected to begin operations in 2028. The firm developed a cross-border holding structure and coordinated grid connection agreements with the national grid operator.
Additional work includes advisory support to Ukrainian state energy company Naftogaz on a €500 million credit facility from the European Bank for Reconstruction and Development, which funded emergency winter gas purchases, as well as legal assistance to convert a French train manufacturer’s German factory for military production.
Collectively, these projects illustrate a dynamic period for infrastructure development and finance across the UK and Europe, involving complex legal frameworks and substantial public and private investment.