European Commission Probes Belgian Plans to Extend Life of Nuclear Reactors

The European Commission has launched an in-depth probe under EU state aid rules into Belgium’s plans to extend the service life of two nuclear reactors, Doel 4 and Tihange 3.

The EU state notified the Commission of its plans to extend the lifetime of the two reactors for ten years. The two reactors have an aggregate capacity of two gigawatts (GW) and are co-owned by Electrabel and Luminus, units of Engie S.A. and EDF, respectively.

“The measure aims at preserving the security of electricity supply in Belgium and neighboring countries, while keeping the carbon intensity of the Belgian electricity mix as low as possible”, the Commission said in a press release. “It complements the existing Belgian capacity mechanism which aims to ensure that there is sufficient capacity to produce electricity and that such production meets the expected demand”.

Belgium plans to support the service life extension of the two reactors in cooperation with Engie. The partnership will result in the creation of a 50-50 joint venture, a EUR 2 billion ($2.2 billion) financial push through shareholder loans, state equity injection and financial support mechanisms.

Additionally, the partnership includes the transfer of liabilities from Electrabel to the Belgian state concerning long-term storage and the final disposal of nuclear waste and spent fuel, against the payment of a lump sum of EUR 15 billion ($16.3 billion) and risk-sharing and legal protections in the event of future legislative changes, specifically concerning nuclear operators in Belgium or Electrabel's nuclear activities.

“While the Belgian measure appears justified, at this stage, the Commission has doubts as to its compatibility with EU State aid rules and has therefore decided to open an in-depth investigation”, the Commission said.

The Commission is reviewing whether support beyond existing mechanisms is necessary and a $16.3 billion payout for nuclear waste disposal is reasonable.

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