Belgium Extends Lifetime of Two Nuclear Reactors with EU Approval

In a significant shift in energy policy, Belgium has secured European Commission approval for a €15 ($16.2) billion state aid package to extend the operation of two nuclear reactors, Doel 4 and Tihange 3, by ten years. Initially scheduled for shutdown under Belgium’s 2003 nuclear phase-out law, these reactors will now remain operational until at least 2035. The decision comes amid concerns over energy security following the European energy crisis and geopolitical tensions, particularly the war in Ukraine.

Why Belgium Extended the Reactors’ Lifetime

Belgium, like much of Europe, has been facing rising energy prices and concerns over grid stability. With the planned closure of all seven of its nuclear reactors by 2025, the country risked increased dependence on fossil fuel imports. To mitigate this, the Belgian government decided in 2022 to extend the life of Doel 4 and Tihange 3, the two newest reactors, which together generate up to 2,000 megawatts (MW) of electricity—enough to power millions of homes.

This extension is part of Belgium’s broader strategy to balance energy independence with climate goals. Nuclear energy, which emits no direct carbon dioxide, plays a crucial role in the EU’s transition to cleaner energy.

Financial Structure of the Extension Plan

The European Commission approved Belgium’s financial support package under EU state aid rules after an in-depth review. The key elements of the plan include:

• Creation of BE-NUC: A joint venture between the Belgian state (50%) and Electrabel, a subsidiary of Engie (50%). BE-NUC will own 89.8% of the reactors, while Luminus (EDF’s Belgian subsidiary) holds 10.2%.
• A Contract-for-Difference (CfD): This mechanism stabilizes revenues, preventing excessive profits or losses due to electricity price fluctuations.
• Government-Backed Loans and Cashflow Guarantees: These financial safeguards help secure the reactors’ continued operation and maintenance.
• Transfer of Nuclear Waste Liabilities: Electrabel will transfer responsibility for nuclear waste and spent fuel to the Belgian state in exchange for a one-time payment of €15 ($16.2) billion.

EU Scrutiny and Final Approval

The European Commission launched an in-depth investigation in 2024 to assess whether Belgium’s support package was proportionate and necessary. Key concerns included:

• Whether financial protections for reactor operators were excessive.
• Whether the nuclear waste liability transfer was appropriately priced.
• Potential market distortions caused by the state aid.

To address these issues, Belgium modified the plan by:

• Ensuring independent market oversight of BE-NUC’s electricity sales.
• Limiting the government’s financial exposure to reactor outages.
• Implementing stricter waste transfer conditions, including volume adjustments and independent fund management.

With these adjustments, the Commission ruled that the aid was necessary, proportionate, and compliant with EU regulations.

Broader Implications for Nuclear Energy in Europe

Belgium’s decision reflects a growing trend in Europe to extend the life of existing nuclear reactors rather than build new ones. Countries such as France, Sweden, and Finland are also reconsidering nuclear phase-outs, while Germany has already shut down its reactors.

Globally, nuclear energy is experiencing renewed interest:

• China and India are leading the world in constructing new reactors, with China planning to add over 150 GW of nuclear capacity by 2050.
• The U.S. and the UK are investing in small modular reactors (SMRs), which are seen as a future alternative to large-scale nuclear plants.
• According to the International Energy Agency (IEA), nuclear power capacity must double by 2050 to meet global net-zero goals.

Economic and Environmental Considerations

Extending a nuclear reactor’s life is often more cost-effective than building new plants. A 2023 World Nuclear Association report estimated that extending a reactor’s life by 10-20 years costs between $500 million and $1 billion per unit, compared to $6-10 billion for a new reactor. Additionally, existing reactors require less new infrastructure, reducing environmental impacts.

For Belgium, this extension helps ensure stable electricity prices, reduce reliance on natural gas imports, and maintain progress toward EU climate targets.