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Released January 11, 2024 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Belgium's government has signed an agreement with French energy company Engie S.A. (Paris, France) to extend the life of two of its nuclear plants by 10 years.
The newer Tihange 3 and Doel 4 nuclear reactors will get another decade of operation and continue to supply 2 gigawatts (GW) of electricity until 2035. The plants were originally scheduled to be shut down in 2025, but a stay of execution was put in place in 2022 by the government, when it opened negotiations. The older Doel 3 reactor was shut down as planned in September 2022, despite calls to extend its life, but operator Engie claimed it would cost too much. Tihange 2 was permanently shut down at the end of January 2023 after 40 years of operation. Traditionally, nuclear power has accounted for almost half of the country's electricity, but this rose in recent years due to record gas prices across Europe.
The deal was concluded with Electrabel S.A. (Brussels, Belgium), the Belgian arm of Engie. "The extension of the Doel 4 and Tihange 3 nuclear power plants by 10 years has now been established," said Belgian Prime Minister Alexander De Croo. "This agreement is important for the security of supply of our families and companies. It strengthens our electricity supply, reduces our country's energy dependence and guarantees the production of carbon-free, affordable electricity in Belgium. I would like to thank the management of Engie for all the work over the past months to reach this agreement."
Catherin MacGregor, chief executive officer of Engie, said: "We are very pleased to announce the final signature of this agreement, which allows a balanced sharing of risks associated with the extended operation of the two nuclear units and eliminates uncertainties for Engie Group related to the evolution of nuclear waste liabilities. Our teams are working hard on implementing the long-term operation as quickly as possible to strengthen the security of electricity supply in Belgium."
Doel 4 and Tihange 3 will shut in 2025 for essential repairs, maintenance and refueling, but both parties have committed to restarting the units as early as November 2026, or even 2025, "subject to the effective implementation of an announced relaxation of regulations." A contract for difference (CfD) mechanism will be used to cover remuneration for electricity generation, reducing the risk associated with investment. The strike price for the electricity output will be based on the cost of extending the operation of the nuclear units.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The newer Tihange 3 and Doel 4 nuclear reactors will get another decade of operation and continue to supply 2 gigawatts (GW) of electricity until 2035. The plants were originally scheduled to be shut down in 2025, but a stay of execution was put in place in 2022 by the government, when it opened negotiations. The older Doel 3 reactor was shut down as planned in September 2022, despite calls to extend its life, but operator Engie claimed it would cost too much. Tihange 2 was permanently shut down at the end of January 2023 after 40 years of operation. Traditionally, nuclear power has accounted for almost half of the country's electricity, but this rose in recent years due to record gas prices across Europe.
The deal was concluded with Electrabel S.A. (Brussels, Belgium), the Belgian arm of Engie. "The extension of the Doel 4 and Tihange 3 nuclear power plants by 10 years has now been established," said Belgian Prime Minister Alexander De Croo. "This agreement is important for the security of supply of our families and companies. It strengthens our electricity supply, reduces our country's energy dependence and guarantees the production of carbon-free, affordable electricity in Belgium. I would like to thank the management of Engie for all the work over the past months to reach this agreement."
Catherin MacGregor, chief executive officer of Engie, said: "We are very pleased to announce the final signature of this agreement, which allows a balanced sharing of risks associated with the extended operation of the two nuclear units and eliminates uncertainties for Engie Group related to the evolution of nuclear waste liabilities. Our teams are working hard on implementing the long-term operation as quickly as possible to strengthen the security of electricity supply in Belgium."
Doel 4 and Tihange 3 will shut in 2025 for essential repairs, maintenance and refueling, but both parties have committed to restarting the units as early as November 2026, or even 2025, "subject to the effective implementation of an announced relaxation of regulations." A contract for difference (CfD) mechanism will be used to cover remuneration for electricity generation, reducing the risk associated with investment. The strike price for the electricity output will be based on the cost of extending the operation of the nuclear units.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
