The decision to extend the operational period of nuclear power stations may result in the government incurring around 1.5 billion euros in costs, due to the faster than anticipated drop in electricity prices. This information was revealed in a report commissioned by the government and carried out by the international investment bank, Lazard, as reported by Het Laatste Nieuws.
If the current trend of falling electricity prices continues over the next few years, the costs of maintaining operations at Doel 4 and Tihange 3 nuclear power stations could cost Belgium an estimated 146 million euros annually. This would result in a total expenditure of nearly 1.5 billion euros over a decade.
These costs are a result of an agreement made between the government and Engie at the end of last year. According to the agreement, the French company, which operates the Belgian state’s power stations, is guaranteed a set price for the electricity it generates. If the electricity is sold for more than this set price, the surplus funds go to the Belgian state. However, if it sells for less, the Belgian government will cover the difference.
The agreed-upon price limit is set at 81 euros per MWh. The government had initially projected that the price of electricity would only fall below this level by 2028. However, the current wholesale market price for 2027 is only 64 euros per MWh. While it’s not possible to predict future trends with certainty, experts believe that it’s likely that the cost of electricity will continue to fall in the coming years. If this happens, the estimated costs could potentially rise to 1.8 billion euros in the worst-case scenario.
In response to these projections, the office of the federal energy minister, Tinne Van der Straeten, stated that the guaranteed price that Engie receives is primarily based on costs, which shows that nuclear energy is not as affordable as some might believe. Additionally, the government stressed that the agreement with Engie was made with the intention of increasing the country’s energy independence.
