11:37 21 October 2013
The government has teamed up with French-owned EDF Energy for a plan that will see new nuclear power station Hinkley Point C, in Somerset, become fully operational in 2023.
Prime Minister David Cameron said: "As part of our plan to help Britain succeed, after months of negotiation, today we have a deal for the first nuclear power station in a generation to be built in Britain.
"This deal means £16bn of investment coming into the country and the creation of 25,000 jobs, which is brilliant news for the South West and for the country as a whole.
"As we compete in the tough global race, this underlines the confidence there is in Britain and makes clear that we are very much open for business."
The government has been in negotiations with EDF Energy for over a year.
The cost of electricity will be high at £92.50 per megawatt hour for energy produced at the Somerset site - which equates to around double the current market rate.
The contract is a long term investment, promising 35 years of operation. The two reactors could provide 7% of the nation's energy.
Chinese investors are also reportedly keen to invest in the scheme.
The project will apparently cut the UK's carbon emissions by 9 million tonnes a year.
The news comes at a time when energy companies are posting sharp rises in prices to the public.
The government has estimated that their new nuclear power plans will slash the average energy bill by £77 by 2030.
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