Belgium and French power utility Engie have formalised the ten-year extension of unit 4 at the Doel NPP and unit 3 at the Tihange NPP. The finalised agreement allows Engie to alleviate historical financial constraints while stabilising Belgium’s energy outlook for the next decade.
This follows approval from the European Commission in February, consolidating a preliminary agreement between Engie and Belgium signed in January 2023. The two parties in July 2022 had signed a “non-binding letter of intent” concerning the life extension of the two reactors that have been in service since 1985.
Belgium had seven nuclear power reactors – three at Tihange near Liege and four at Doel near Antwerp. All seven are pressurised water reactors operated by Electrabel, part of Engie. Apart from Doel 1&2, which are 430MWe plants, the others have a capacity of approximately 1000MWe.
Nuclear was a contentious issue in Belgium. After more than 20 years of debate, Belgium in 2020 decided to phase out nuclear power. However, in 2021, the authorities put forward two scenarios: plan A, to phase out nuclear power by 2025; and plan B to extend the life of two units for ten years in the event of supply problems. Following the conflict in Ukraine and resulting energy shortages plan B was adopted with a decision to extend the lives of Tihange 3 and Doel 4 until 2035. Belgium’s electricity network operator had warned of significant energy shortages in the winter of 2026-2027 without a nuclear extension.
In July 2022, Electrabel said Tihange 2 and Doel 3 could not be extended for technical and safety reasons. Doel 3 was closed in October 2022, Tihange 2 in February 2023 and Doel 1 in February 2025. Tihange 1 is set to shut in October this year followed by Doel 2 in December.
The Doel 4 and Tihange 3 reactors will now be operated by a joint venture equally owned by Engie and the Belgian government. This is based on a Contract for Difference mechanism aimed at evenly distributing financial risks associated with extending the operating life of the plants. The extension will relieve Engie of a significant financial burden that had impacted its financial statements, linked to provisions made for the initially planned shutdown.
The deal also includes transferring financial responsibility for nuclear waste and used fuel to the Belgian government. As a result, Engie will no longer be exposed to the evolution of future costs related to the treatment of waste. It determines a fixed amount to cover the future costs related to the treatment of nuclear waste, concerning all Engie nuclear facilities in Belgium. This totals €15bn ($16bn) payable in two instalments depending on the category of waste. The first tranche has already been paid, with a second due upon reactor restart, scheduled for November following maintenance and refuelling outages.
Engie said preparatory works for the 10-year extension of the two nuclear reactors “are in full progress”. The remaining steps include: fuel deliveries to the plants; final validation of the extension file by the nuclear safety authority (expected in June); and works on the nuclear units during the scheduled shutdown periods (scheduled for April to July for Tihange 3 and July to end of October for Doel 4). “Within the boundaries of its strategy, Engie will also be open for discussions on the federal energy policy on nuclear.”
Belgium’s Energy Ministry said the agreement with Engie “is a real paradigm shift that sends a clear signal to the operators: Belgium is entering into discussions about the future of its energy mix without taboos and with the will to build a resilient, affordable and low-carbon energy policy for the future.”
Belgium and French power utility Engie have formalised the ten-year extension of unit 4 at the Doel NPP and unit 3 at the Tihange NPP. The finalised agreement allows Engie to alleviate historical financial constraints while stabilising Belgium’s energy outlook for the next decade.
This follows approval from the European Commission in February, consolidating a preliminary agreement between Engie and Belgium signed in January 2023. The two parties in July 2022 had signed a “non-binding letter of intent” concerning the life extension of the two reactors that have been in service since 1985.
Belgium had seven nuclear power reactors – three at Tihange near Liege and four at Doel near Antwerp. All seven are pressurised water reactors operated by Electrabel, part of Engie. Apart from Doel 1&2, which are 430MWe plants, the others have a capacity of approximately 1000MWe.
Nuclear was a contentious issue in Belgium. After more than 20 years of debate, Belgium in 2020 decided to phase out nuclear power. However, in 2021, the authorities put forward two scenarios: plan A, to phase out nuclear power by 2025; and plan B to extend the life of two units for ten years in the event of supply problems. Following the conflict in Ukraine and resulting energy shortages plan B was adopted with a decision to extend the lives of Tihange 3 and Doel 4 until 2035. Belgium’s electricity network operator had warned of significant energy shortages in the winter of 2026-2027 without a nuclear extension.
In July 2022, Electrabel said Tihange 2 and Doel 3 could not be extended for technical and safety reasons. Doel 3 was closed in October 2022, Tihange 2 in February 2023 and Doel 1 in February 2025. Tihange 1 is set to shut in October this year followed by Doel 2 in December.
The Doel 4 and Tihange 3 reactors will now be operated by a joint venture equally owned by Engie and the Belgian government. This is based on a Contract for Difference mechanism aimed at evenly distributing financial risks associated with extending the operating life of the plants. The extension will relieve Engie of a significant financial burden that had impacted its financial statements, linked to provisions made for the initially planned shutdown.
The deal also includes transferring financial responsibility for nuclear waste and used fuel to the Belgian government. As a result, Engie will no longer be exposed to the evolution of future costs related to the treatment of waste. It determines a fixed amount to cover the future costs related to the treatment of nuclear waste, concerning all Engie nuclear facilities in Belgium. This totals €15bn ($16bn) payable in two instalments depending on the category of waste. The first tranche has already been paid, with a second due upon reactor restart, scheduled for November following maintenance and refuelling outages.
Engie said preparatory works for the 10-year extension of the two nuclear reactors “are in full progress”. The remaining steps include: fuel deliveries to the plants; final validation of the extension file by the nuclear safety authority (expected in June); and works on the nuclear units during the scheduled shutdown periods (scheduled for April to July for Tihange 3 and July to end of October for Doel 4). “Within the boundaries of its strategy, Engie will also be open for discussions on the federal energy policy on nuclear.”
Belgium’s Energy Ministry said the agreement with Engie “is a real paradigm shift that sends a clear signal to the operators: Belgium is entering into discussions about the future of its energy mix without taboos and with the will to build a resilient, affordable and low-carbon energy policy for the future.”
