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Released December 10, 2015 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Belgium's government has approved a 10-year extension of the lives of the Doel 1 and Doel 2 nuclear reactors in return for significantly higher tax payments from plant owner ENGIE (EPA:ENGI) (Paris, France).
ENGIE has agreed to pay an annual fee of $21 million for the extensions. This fee will be paid from 2016 to 2025 into the Belgian energy transition fund, which was established this summer to help the country move toward renewable energy. As part of the agreement, ENGIE has agreed to invest $740 million in Doel 1 and 2 to ensure safety and efficiency. Doel 1 has been closed since the start of the year as part of the country's phasing out of older reactors, while Doel 2 has been shut due to planned maintenance.
The plants have 433-megawatt (MW) pressurized water reactors (PWRs), which were commissioned in the 1970s. Originally, both reactors were to close this year after their mandatory 40 -years of operation, but the new coalition government agreed to extend their lives for 10 years in return for a higher contribution from ENGIE.
"We are determined to write a new page," said Gerard Mestrallet, the company's chief executive officer (CEO), following the negotiations. "The reactors' new lease on life will help make Belgium a showroom for energy transition."
The company has also agreed to pay a fixed amount of $217 million for 2015 and $141 million in 2016 for its Doel 3, Doel 4, Tihange 2 and Tihange 3 reactors. A sum for 2017 and going forward will be calculated by taking into account electricity prices, market conditions and production volumes. Belgium intends to decommission all of its nuclear plants by 2025.
Last month, Electrabel SA (Brussels, Belgium), which is part of ENGIE, received the green light to restart the Doel 3 and Tihange 2 nuclear power plant units, which have been offline since 2014, owing to a number of ongoing technical issues. For additional information, see November 24, 2015, article - Belgium Clears Two Reactors for Restart.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to europe@industrialinfo.eu or visit us online at Industrial Info Europe.
ENGIE has agreed to pay an annual fee of $21 million for the extensions. This fee will be paid from 2016 to 2025 into the Belgian energy transition fund, which was established this summer to help the country move toward renewable energy. As part of the agreement, ENGIE has agreed to invest $740 million in Doel 1 and 2 to ensure safety and efficiency. Doel 1 has been closed since the start of the year as part of the country's phasing out of older reactors, while Doel 2 has been shut due to planned maintenance.
The plants have 433-megawatt (MW) pressurized water reactors (PWRs), which were commissioned in the 1970s. Originally, both reactors were to close this year after their mandatory 40 -years of operation, but the new coalition government agreed to extend their lives for 10 years in return for a higher contribution from ENGIE.
"We are determined to write a new page," said Gerard Mestrallet, the company's chief executive officer (CEO), following the negotiations. "The reactors' new lease on life will help make Belgium a showroom for energy transition."
The company has also agreed to pay a fixed amount of $217 million for 2015 and $141 million in 2016 for its Doel 3, Doel 4, Tihange 2 and Tihange 3 reactors. A sum for 2017 and going forward will be calculated by taking into account electricity prices, market conditions and production volumes. Belgium intends to decommission all of its nuclear plants by 2025.
Last month, Electrabel SA (Brussels, Belgium), which is part of ENGIE, received the green light to restart the Doel 3 and Tihange 2 nuclear power plant units, which have been offline since 2014, owing to a number of ongoing technical issues. For additional information, see November 24, 2015, article - Belgium Clears Two Reactors for Restart.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to europe@industrialinfo.eu or visit us online at Industrial Info Europe.
