The European Commission announced on Monday that it has launched an investigation into the state aid planned to extend the lifetime of Belgium’s nuclear reactors.
Last year, the Federal Government and Engie (the French energy company that operates Belgium's nuclear park) agreed on a plan to extend by ten years the lifetime of Belgium's two youngest nuclear reactors, Doel 4 and Tihange 3. The measure was taken to safeguard Belgium's electricity supply while keeping the carbon intensity of Belgian electricity low.
The planned partnership has been the subject of long negotiations that cover a broad range of components. These include the 50/50 joint venture between the Belgian energy corporation Electrabel and the Belgian State, the price cap at which the State must compensate Engie for production losses, and the transfer of liabilities from Electrabel to the Belgian State concerning disposal of nuclear waste and spent fuel.
While the European Commission states that the details of these plans appear to be "justified", it has expressed concern that they are not compatible with EU rules regarding state aid.
The investigation will specifically look into the impact of the agreement on the market, the proportionality of the combination of financial and structural arrangements, the need for the joint-venture creation and its finance, and compliance with relevant EU sectoral legislation.
Interested third parties and the Belgian State now have an opportunity to submit comments as a response to the opening of the investigation.
Under EU rules, Member States can dictate the general structure of their energy sources and it falls under national competence to decide to promote nuclear energy use. State aid for nuclear energy needs to remain necessary and cannot unfavourably impact trading conditions to an extent that goes against common interest.
