Belgian Nuclear Extension Agreement: Process, Challenges, and Impact on Energy Supply

2023-12-03 14:20:00

That’s it, that’s it (almost) really. The Minister of Energy, Tinne Van der Straeten (Groen), announced, on the sets of Flemish television VRT, that she had finalized the agreement with Engie aimed at extending the lifespan of Doel 4 by ten years and Tihange 3.

After the decision in principle taken by Vivaldi in March 2022 and the partial agreement reached in June 2023, the final deal is now complete. The document, which is “more than 1000 pages”, will have to be presented to the restricted council of ministers (kern). This promises a lot of analytical work on the part of Vivaldi party experts.

Engie managers will also have to present and have the file validated by their board of directors. A priori, Engie’s board of directors was kept informed of the negotiations and should not block the deal.

“People sometimes forget that Belgian nuclear reactors are old”

However, there are still quite a few steps to take following this “final” agreement. By the end of the year or the beginning of next year, it will be necessary to adapt the nuclear phase-out law of 2003. Indeed, it should be noted that Doel 4 and Tihange 3 will be closed in 2035, instead of 2025 And this legal text must be accompanied by an environmental impact study.

Reduce safety standards

In addition, nuclear safety standards will have to be reduced to allow Engie to spread out the work to extend its reactors.

Furthermore, the European Commission will have to give its approval to several crucial elements of the extension file. Indeed, several elements resulting from the negotiations are considered state aid. Thus, the extended reactors will benefit from an electricity price (for example, 70 euros per MWh) guaranteed by the Belgian State, via what is called a contract for difference. If market prices appear below 70 euros, the State will pay the difference. But if market prices are above 70 euros, the State will receive the surplus. Minister Tinne Van der Straeten’s office has not yet communicated what the state-guaranteed price of electricity will be. We just know that an extension of ten years, instead of twenty, results in a higher guaranteed price.

Decryption of the agreement between Engie and Vivaldi on the extension of nuclear power: “We will have to recruit”

Transferring responsibility for nuclear waste

In addition, Engie will have to pay 15 billion euros to transfer responsibility for its nuclear waste to the Belgian state, which is considered state aid. The approval of the European Commission will therefore be necessary.

Engie will also have to submit its extension file to the Federal Nuclear Control Agency (AFCN) by the end of 2024. Which should work on it for around six months. “We are awaiting approval from the AFCN for our extension file around mid-2025,” recently declared Thierry Saegeman, the current boss of Electrabel, who will soon take other positions at Engie.

Doel 4 and Tihange 3 are scheduled to be shut down in July and September 2025 respectively. At that time, there will only be 2 and 4 months left to carry out a major inspection of the reactors, before their restart scheduled for November 2025. This tight schedule will not tolerate any missteps. However, Vivaldi hopes that the two reactors will be ready in time, to ensure the security of the country’s electricity supply.

Engie is also not sure of being ready to restart Doel 4 and Tihange 3 for the month of November 2025? “No, it’s not certain, it will be a challenge,” Catherine MacGregor recently said. She also recalled that November 2025 was not a “commitment” but an “objective”.

Finally, we do not yet know whether all of the documents signed by Engie and the De Croo government will be made public.

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