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Released March 22, 2017 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Belgium's plan to secure longer life for three nuclear reactors has been granted permission by the European Commission (EC).
The Commission stated that it found Belgian plans to compensate plant operators ENGIE (EPA:ENGI) (Paris, France) and EDF Belgium for potential financial risks linked to long-term operation of three nuclear reactors to be in line with European Union (EU) state aid rules. Nuclear power supplies about half of Belgium's total electricity.
Toward the close of 2015, Industrial Info reported that the government had approved a 10-year extension of the lives of the Doel 1 and Doel 2 nuclear reactors until 2025 in return for significantly higher tax payments from plant owner ENGIE. For additional information, see December 10, 2015, article - Belgium Extends Lives of Doel Nuclear Reactors.
The government also agreed a similar deal for the Tihange 1 reactor, which is jointly owned by ENGIE and EDF Belgium. Belgium agreed with the operators that they would commit to investing 1.3 billion euros ($1.4 billion) in the three ageing reactors in return for them allowing them to operate for another 10 years.
As well as getting permission to run the plants for another 10 years, the government has agreed that they would receive financial compensation if Belgium decides to close the reactors before the end of the 10-year period, modifies the level of nuclear tax to be paid by the owners, or changes other economic parameters of the agreements.
According to the government: "Nuclear energy requires long-term commitment and these guarantees were necessary to secure the investment of the companies."
The EC ruled that: "Belgium has demonstrated that the measures avoid undue distortions of the Belgian energy market. There will be an obligation on Engie-Electrabel, i.e. the major player on Belgian electricity markets, to sell on regulated electricity markets each year a volume equivalent to Engie-Electrabel's share of the annual production of Tihange 1, Doel 1 and Doel 2. It will ensure liquidity on Belgian electricity markets and help increase competition between electricity suppliers. On this basis, the Commission has approved the measures under EU state aid rules."
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 info@industrialinfo.eu or visit us online at Industrial Info Europe.
The Commission stated that it found Belgian plans to compensate plant operators ENGIE (EPA:ENGI) (Paris, France) and EDF Belgium for potential financial risks linked to long-term operation of three nuclear reactors to be in line with European Union (EU) state aid rules. Nuclear power supplies about half of Belgium's total electricity.
Toward the close of 2015, Industrial Info reported that the government had approved a 10-year extension of the lives of the Doel 1 and Doel 2 nuclear reactors until 2025 in return for significantly higher tax payments from plant owner ENGIE. For additional information, see December 10, 2015, article - Belgium Extends Lives of Doel Nuclear Reactors.
The government also agreed a similar deal for the Tihange 1 reactor, which is jointly owned by ENGIE and EDF Belgium. Belgium agreed with the operators that they would commit to investing 1.3 billion euros ($1.4 billion) in the three ageing reactors in return for them allowing them to operate for another 10 years.
As well as getting permission to run the plants for another 10 years, the government has agreed that they would receive financial compensation if Belgium decides to close the reactors before the end of the 10-year period, modifies the level of nuclear tax to be paid by the owners, or changes other economic parameters of the agreements.
According to the government: "Nuclear energy requires long-term commitment and these guarantees were necessary to secure the investment of the companies."
The EC ruled that: "Belgium has demonstrated that the measures avoid undue distortions of the Belgian energy market. There will be an obligation on Engie-Electrabel, i.e. the major player on Belgian electricity markets, to sell on regulated electricity markets each year a volume equivalent to Engie-Electrabel's share of the annual production of Tihange 1, Doel 1 and Doel 2. It will ensure liquidity on Belgian electricity markets and help increase competition between electricity suppliers. On this basis, the Commission has approved the measures under EU state aid rules."
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 info@industrialinfo.eu or visit us online at Industrial Info Europe.
