Strictly speaking, the Belgian state will not be the operator of the two youngest reactors. However, risks and profits will be shared through a new company to be established, in which both parties will participate for half, De Croo and Van der Straeten announced at a press conference.
“Talks about extending the life of Doel 4 and Tihange 3 are progressing constructively,” the two reported earlier this morning. “In a joint agreement in principle, the Belgian state and Engie have agreed on the further approach, timing and framework of the negotiations.”
The agreement consists of three parts:
• The extension of the operation of Doel 4 and Tihange 3 for 10 years, together representing 2 GW of nuclear capacity. “The Belgian state will not become an operator”, emphasize De Croo and Van der Straeten. “Both sides are ready to discuss and agree the terms for the reactors to be commissioned in 2026, subject to approval by the safety authorities.”
• There will be “a stable and sustainable structure in which the Belgian state and Engie share both risks and profits through a new company to be established”. In this way, our country will “be able to have a say in strategic decisions”, assures De Croo.
• The costs of dismantling the nuclear power stations, managing the fissile materials and radioactive waste are borne by the operator, ie Engie. However, it still sounds like this: “The costs for the management of the waste and spent fuel will be finalized after study”, during which discussions will also start about “a cap to be defined”. In concrete terms, a limit is therefore set for the costs, above which the state will intervene. In addition, Engie can count on a risk premium from the government.
50/50 shareholding
In a press release, operator Engie confirms that it has signed a “non-binding letter of intent” with the Belgian state “to evaluate the feasibility and conditions of an extension of the two most recent nuclear power plants, Doel 4 and Tihange 3”.
Both parties will now negotiate the agreement in principle “which lays down the main terms of this extension and a joint development agreement regarding the sharing of the costs of this extension”, it sounds. The aim is to eventually have a binding agreement by December 31, 2022.
Engie and the government have established a framework for negotiations, the company said. Including some conditions to enable a restart in 2026. For example, there is talk of creating a new entity for the two nuclear power stations, with a 50/50 shareholding from the Belgian state and Electrabel. There is also a cap on the liabilities and future costs “associated with the management of the nuclear waste and spent fuel in the form of a lump sum, which also includes a premium to cover future uncertainties and which will be determined after investigation by the competent authorities”.
‘First crucial step’
“The Belgian government takes its responsibility so that our country regains some control over its own energy supply,” says De Croo. “This agreement is a crucial first step and an important sign of trust between both parties. The aim is to reach a final agreement by the end of this year so that our country is assured of sufficient electricity in turbulent geopolitical times.”
The agreement gives us “more solid ground under our feet to get a grip on the energy sector in very crucial times,” said De Croo. At a press conference, he talked about a “good deal” for our country and a balanced agreement that should allow “families and companies to sleep on both ears.”
This agreement is a first crucial step and an important sign of trust between both parties.
The aim is to reach a final agreement by the end of this year so that our country is assured of sufficient electricity in turbulent geopolitical times.
— Alexander De Croo 🇧🇪🇪🇺 (@alexanderdecroo) 22 July 2022
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Bouchez wants to open more nuclear power plants
According to chairman Georges-Louis Bouchez, the MR takes an important blow with the agreement. The party has been pressing for a while to keep nuclear power plants open longer. “What was impossible becomes possible,” says Bouchez. But now, he says, is the right time to go one step further. “Now we need to see if we can extend more than two nuclear reactors,” he tweeted. Bouchez still fears for security of supply. According to him, otherwise “a blackout and dramatic prices threaten”.
“Now that all European countries are phasing out their dependence on gas, doing the opposite would be irresponsible. Nuclear energy is an obvious choice for climate, economy and security,” Bouchez concluded on Twitter.
Without it, our country is in danger of a blackout and dramatic prices. With all European countries phasing out their dependence on gas, doing the opposite would be irresponsible. Nuclear energy is an obvious choice for climate, economy and safety. (2/2)
– Georges-L BOUCHEZ (@GLBouchez) 22 July 2022
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N-VA: ‘Precious time lost’
Opposition party N-VA finds it worrying that a final agreement on an extension should only be reached in December. That is a year after De Croo’s first deadline, says MP Bert Wollants in a first reaction.
“Now is the time to persevere. With every month that we postpone the decision, the chance that we can get the nuclear power plants operational in 2026 becomes smaller,” says Wollants. For the N-VA, it must also be possible to talk about the extension of more than two nuclear power stations. “A normal government communicates when she has a real agreement,” said the MP, “but after 21 months it is better than nothing.”
He fears that citizens and companies will have to pay for “mismanagement”. “The governing parties that have allowed this to happen again bear a crushing responsibility,” it said.
Employers satisfied, but demand fast implementation
Employer organizations Voka and VBO are satisfied with the agreement in principle, but emphasize that it is important to finalize and implement it quickly. “It is essential that further preparations are started immediately to keep the two nuclear power plants longer. This is the only way to extend the lifespan in a practical way, to put the supply chain in order in time and to regulate the uranium fuel so that the reactors will be operational by the start of the winter of 2026-2027,” said Frank Beckx, director of the Knowledge and Innovation Center. Lobby center at the Flemish network of companies.
Moreover, with the energy shortage looming this autumn and energy prices soaring, Voka is urging to take steps to keep Doel 3 and Tihange 2 open in the coming winter. “We must do everything we can to avoid having to activate emergency plans in our country, because they will only increase the economic damage,” it said.
“We are satisfied with the agreement in principle. It is a new step in extending nuclear reactors and thus gives our country and its economy more confidence in the future security of supply,” said Pieter Timmermans, CEO of the Federation of Belgian Enterprises. “The agreement in principle forms the necessary basis for the concrete agreements that will have to be worked out with due speed in the coming months. The FEB is counting on this, just like in the past weeks, to be done in a constructive manner.
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