The British government has reached a deal with French energy provider Électricité de France to construct a nuclear-power plant in the U.K. — the first to be built since 1995, Bloomberg reports.
The plant will be built over the next decade near the coast of Somerset, England at a cost of about $26 billion.
The government will subsidize the price of electricity generated by the plant so that EDF will earn a profit at almost double the current market rate for nuclear power. British Prime Minister David Cameron has agreed to guarantee the price at a minimum of 92.5 pounds per megawatt-hour for a 35 year period. The average market rate per megawatt-hour is only 49 pounds.
In London on Monday, Cameron said that the deal “marks the next generation of nuclear power in Britain, which has an important part to play in contributing to our future energy needs.”