The European Commission announced on Monday the initiation of an in-depth investigation to assess whether Belgium’s public support for the extension of nuclear power aligns with EU state aid rules.
Agreement with Engie for Reactor Life Extension
Last year, the Belgian government reached an agreement with the French group Engie, the operator of its nuclear power plants, to extend the operational lifespan of the Doel 4 and Tihange 3 reactors by ten years. These reactors are located near Antwerp (north) and Liège (east), respectively.
Financial and Legal Arrangements Under Scrutiny
The Commission’s investigation focuses on the legal and financial arrangements of this activity extension, which notably involves the creation of a joint venture owned 50/50 by the Belgian state and Electrabel (a subsidiary of Engie), as well as public loans or cash guarantees.
Commission’s Stance on State Aid
“The Commission considers that these elements must be examined together as a single intervention and involve state aid,” stated the European executive body, responsible for ensuring fair competition within the EU.
“The opening of the in-depth investigation provides Belgium and interested parties with the opportunity to submit their comments. It does not prejudge the outcome of the investigation,” the Commission added.
Original Nuclear Phase-Out Plan
Initially, Belgium’s entire nuclear fleet was slated to be shut down by the end of 2025, according to a law passed in 2003.
However, the context of the war in Ukraine, dependence on Russian gas, and soaring energy prices have significantly altered the situation over the past two years.
Government’s Concerns and Agreement with Engie
Expressing concerns about the country’s electricity supply, the Belgian government, led by Flemish liberal Alexander De Croo, secured an agreement with Engie to extend the operation of two reactors with a total capacity of 2 gigawatts until 2036.
Financial Arrangements and Nuclear Waste Storage
In addition to the investment of approximately 2 billion euros (split equally) to establish the joint venture that will manage the two reactors, the agreement includes a controversial aspect regarding the future storage of nuclear waste and spent fuel.
Focus on Proportionality
The agreement stipulates that the Belgian state will bear the costs of this storage, with Engie paying a lump sum of 15 billion euros. The Commission has expressed its intention to examine the “proportionality” of these financial arrangements.