EDF, UK government agree to extend life of Sizewell B nuclear plant by 20 years

By Nina Chestney

LONDON, July 8 (Reuters) - French power company EDF and the British government have signed an agreement to extend the life of the Sizewell B nuclear power plant in Suffolk, England, by 20 years to 2055, they said on Wednesday.

• The 1.2-gigawatt plant was commissioned in 1995 and was due to stop generating in 2035. That has been extended by 20 years.

• EDF and the government signed a contract for difference (CfD) agreement to extend the plant's life. Sizewell B will receive a guaranteed £70.50 per megawatt-hour from April 2035 to March 2055 for the electricity it produces based on 2025 prices.

• A nuclear CfD guarantees a strike price for power output. When market prices are lower, consumers make up the difference and when prices are higher, the generator pays the excess back.

• The scheme aims to give low-carbon projects a predictable source of income.

• EDF said it will fund a major refurbishment of the plant during planned outages over the next 15 years, costing around £800 million ($1.07 billion).

• Sizewell B provides around 3% of the UK’s total electricity needs. The extension will ensure 2.5 million homes are powered and protect consumers from exposure to volatile fossil fuel markets, the government said in a statement.

• Many UK nuclear reactors have already shut down and others have had life extensions to the end of this decade. A new plant, Hinkley Point C, has had repeated delays and rising costs. The first reactor is now expected to start up around 2030. The other new plant, Sizewell C, won project approval last year after securing investment.

• British energy firm Centrica has a 20% stake in Britain's operational nuclear fleet, which consists of five plants.

($1 = 0.7492 pounds)

(Reporting by Nina Chestney;Editing by Elaine Hardcastle)