The government has given the go-ahead for the UK's first new nuclear station in a generation, BBC News reported.
France's EDF Energy will lead a consortium, which includes Chinese investors, to build the Hinkley Point C plant in Somerset.
Ministers say the deal will help take the UK towards low-carbon power and lower generating costs in future.
Critics warn guaranteeing the group a price for electricity at twice the current level will raise bills.
"For the first time, a nuclear station in this country will not have been built with money from the British taxpayer," said Secretary of State for Energy Edward Davey.
The two reactors planned for Hinkley, which will provide power for around 60 years, are a key part of the coalition's drive to shift the UK away from fossil fuels towards low-carbon power.
Ministers and EDF have been in talks for more than a year about the minimum price the company will be paid for electricity produced at the site, which the government estimates will cost £16bn to build.
The two sides have now agreed the "strike price" of £92.50 for every megawatt hour of energy Hinkley C generates per hour. This is almost twice the current wholesale cost of electricity.
