Outgoing Belgian Government seeks new distributor for nuclear electricity

Outgoing Belgian Government seeks new distributor for nuclear electricity
The Tihange nuclear cooling tower pictured during a visit of some ministers of the federal government to the nuclear central of Engie, Thursday 13 July 2023, in Tihange. Credit: Belga

The outgoing Federal Government has issued a call for tenders to find a distributor for electricity from nuclear power plants that will operate for an additional ten years, according to reports from L'Echo and De Tijd on Friday.

The Doel 4 and Tihange 3 units produce about 14 terawatt-hours per year, nearly 18% of Belgium's current electricity production. Plans to close all nuclear power plants in Belgium by 2025 were delayed in March 2022 by ten years, with Doel 4 and Tihange 3 allowed to remain in operation until 2035.

The Belgian Government is now looking for an electricity distributor, which will also manage the commercial aspects of the 2 gigawatts of production capacity.

They will decide on the operation of the plants, such as scheduling temporary shutdowns when market prices are negative, and determine how the electricity will be sold, whether in small quantities or through long-term contracts.

The government is looking for a strong candidate which must meet strict criteria, including having a high credit rating, operating at least two large nuclear or fossil fuel power plants (over 350 MW each), and managing a portfolio of at least 1,000 MW. These requirements effectively exclude small players or companies that specialise solely in wind farms.

The selection will be based solely on the most advantageous financial offer, and candidates have until mid-January to submit their proposals.

Engie Electrabel, the current operator of various Belgian nuclear power plants, will be allowed to participate in this call for tenders, as will other major Belgian players such as Luminus (a subsidiary of EDF). This auction could also attract large European energy groups.

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