Commission Approves Belgian State Aid to Extend Operation of Two Nuclear Reactors
Today, the European Commission (Commission) has approved a revised Belgian support measure for the lifetime extension of Doel 4 and Tihange 3, two nuclear reactors. The measure was introduced in response to concerns about security of supply in the context of the energy crisis and the Russian war of aggression against Ukraine.
The aid supports Electrabel, Luminus, and ‘BE-NUC’, the newly created 50-50 joint-venture between the Belgian State and Electrabel. The aid measure includes the creation of BE-NUC for capital investment, a 10-year contract-for-difference ensuring revenue stability, and financial safeguards like a loan and cashflow guarantee. It also involves a EUR 15 billion transfer of nuclear waste liabilities from Electrabel to the Belgian State and risk-sharing measures to protect operators from future legislative changes.
The Commission assessed the aid measure under Article 107(3)(c) of the Treaty on the Functioning of the EU (‘TFEU’) and Regulation 2019/943 (as amended by Regulation 2024/1747) on the Union’s electricity market design.
Belgium adjusted the public support package, to address the Commission’s concerns. It introduced safeguards to ensure that the contract for difference (CfD) design is appropriate and there is no undue distortion of the functioning of the electricity market, such as an independent energy manager to oversee electricity sales and a competitive tendering process.
To ensure proportionality, the CfD strike price was set based on a funding gap model, risk-sharing mechanisms were strengthened, and nuclear waste transfer conditions were tightened. The Commission concluded that the aid is necessary, appropriate, and proportionate, minimising market distortions.
For more information, see the Commission’s PR.