Alexander De Croo was visibly relieved when he made an important announcement to the press on Friday morning. In principle, an agreement was reached with the operator of the Belgian nuclear plants to extend the useful life of two reactors by ten years, that is, until the year 2036. “This is a decisive step towards guaranteeing the energy independence of our country,” said the Belgian prime minister. “For the first time, we’re taking control of our energy destiny, and we’re doing it smart.” Sitting next to him, looking much more serious, was Energy Minister Tinne Van der Straeten. The Flemish Greens have been conducting difficult negotiations with operator Engie Electrabel for the past four months – as a representative of a party that was fully committed to nuclear elimination by 2025.
Thomas Gutschker
Political correspondent for the European Union, NATO and Benelux countries based in Brussels.
However, Van der Straeten also frankly admitted that the framework conditions have fundamentally changed. The decision was “taken in the context of a war on European soil”. The energy supply has thus become a matter of national security, which is why the decision brings security to companies and citizens. “Yes, there will be a price,” she said, “but the benefits will outweigh the price.” Belgium is thus setting an example that could also have an impact on the life-extending debate in Germany. After the Netherlands, it is the second neighboring country to review its nuclear deactivation plans. Two new nuclear power plants will be built in the Netherlands.
Originally, Belgium wanted to leave in 2025
In autumn 2020, after lengthy and complicated negotiations, the seven-party coalition that governs Brussels reaffirmed its goal of phasing out nuclear power by 2025. However, the compromise called for a report on security of supply and price developments. In turn, Walloon liberals used this past November to link the continuation of the coalition with an extension of the mandate. In March, three weeks after the Russian invasion of Ukraine, the coalition agreed that the Doel-4 reactors near Antwerp and Tihange-3 near Liège would remain in operation for another ten years. These two newer reactors went into operation in 1985 and have a total output of two gigawatts.
But that was just the beginning of the hardest part, negotiations with French energy company Engie. Initially, he had no interest in an extension and instead wanted to focus on expanding renewables. The company highlighted that the decision to extend it should have been taken sooner. Of course, it was also to raise the price. This has not only affected the necessary investments of at least one billion euros in the safety of the two reactors. It was also about sharing the operational risk and costs of dismantling and disposing of nuclear waste. They are estimated by the government at 41 billion euros. Engie was able to negotiate from a position of strength and continued to set new terms.
These negotiations are not yet complete, but now the main elements are clear. The two reactors are scheduled to restart in November 2026 after a year of modernization. Engie and the Belgian state created a joint company to operate it. De Croo made it clear on Friday that this is a fifty percent equity stake, with which the state can guarantee a strategic say. However, they will not interfere in the operational management of the company. Engie will bear the disassembly costs. The costs of nuclear waste disposal will be determined on the basis of a new report. The negotiations will then revolve around a “ceiling” for Engie; the State assumes the risk of payments in excess of this. This is approaching the German model, De Croo said. A written agreement must be in place by the end of the year.
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The leader of Wallonia’s Liberals, who led the nuclear turnaround last year, called for the extension of more reactors on Friday. “Otherwise, our country risks blackout and dramatic prices,” Georges-Louis Bouchez wrote on Twitter. Five more units are still in operation in Belgium, which according to a phased plan are to be decommissioned by 2025, after a period of forty years each. Then Doel-3 will go offline in late September and Tihange-2 in early February next year. Last week, the Flemish energy minister called for this to be postponed for two months to get through the winter better. However, Engie immediately rejected him. A spokeswoman said it would take five years to prepare for an extension. The fuel rods would have to be completely renewed and safety would have to be extensively checked.