The European Commission (EC) has approved Belgium’s plan to extend the operational lifespan of the Doel 4 and Tihange 3 nuclear reactors for an additional 10 years. This decision aims to strengthen Belgium’s energy security amid the ongoing geopolitical crisis, particularly Russia’s invasion of Ukraine. The nuclear reactor extension is seen as a strategic move.
Extension Plan for Doel 4 and Tihange 3 Reactors
Belgium initially designed the Doel 4 and Tihange 3 reactors to operate for 40 years, starting in 1985. Both reactors, located near Antwerp and Liège, generate approximately 1GW of electricity each. Although Belgium intended to shut down its nuclear reactors by 2025 under a 2003 law, the government reversed its decision in 2022. The war in Ukraine and rising energy costs made maintaining these reactors crucial to energy security. This reversal is essential to allow the nuclear reactor extension.
In June 2024, Belgium presented a proposal to the EC, seeking approval for financial support to extend the reactors’ operation. This nuclear reactor extension would allow Belgium to generate up to 2GW of electricity over the next decade. Following the submission, the EC initiated an investigation in July 2024, analyzing the impact of the state aid, including the potential market effects and the fairness of the proposed financial mechanisms.
Approved Financial Support and Market Impact
The EC has approved a robust financial package, which includes a €15 billion payment from the Belgian state to cover nuclear waste liabilities previously held by Electrabel, a subsidiary of Engie. Belgium has also introduced measures to manage risks associated with regulatory changes. These measures aim to protect both the state and private sector from future disruptions in nuclear policy following the nuclear reactor extension.
Under the new structure, BE-NUC, a joint venture between Electrabel and the Belgian government, will own 89.8% of the reactors, while EDF’s subsidiary Luminus will hold a 10.2% share. In response to concerns about fair market competition, Belgium has modified the scheme by transferring economic decision-making to an independent energy manager. This move ensures competitive electricity pricing and aligns with EU electricity market regulations.
The European Commission concluded that the state aid is both necessary and proportionate, with minimal impact on market competition. The modifications made by Belgium helped alleviate concerns, allowing the EC to approve the nuclear reactor extension package under EU state aid rules.
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