BRUSSELS — In a significant policy shift, Belgium is moving towards nationalizing its nuclear power sector, as announced by Prime Minister Bart De Wever on Thursday. This decision aims to ensure the continued operation of aging nuclear reactors that were previously slated for closure.
De Wever outlined the government’s intention to investigate a “full takeover” of the country’s seven nuclear reactors. In a related development, plans to decommission five reactors, which have been inactive since 2022, will be put on hold, thus preserving the possibility of renewing their licenses or potentially reactivating them.
Government intervention in the nuclear sector
This initiative underscores the increasing need for government intervention in Europe’s nuclear industry, especially as private companies become increasingly hesitant to invest in the costly and high-risk energy sector. The announcement comes at a time when the European Union is intensifying its focus on electrification, renewable energy sources, and nuclear power, aiming to mitigate reliance on fluctuating fossil fuel imports, particularly in light of soaring energy prices influenced by geopolitical tensions.
“We must reduce our overdependency on imported fossil fuels and boost our homegrown, affordable, clean energy supply. From renewables to nuclear, in full respect of technology neutrality,”
European Commission President Ursula von der Leyen stated on Wednesday, highlighting the urgency of the situation. Belgium had previously reversed its stance on nuclear energy last year when its parliament abandoned plans for a phased withdrawal from nuclear power.
Future nuclear capacity and investment challenges
The government aims to secure approximately 4 gigawatts of nuclear capacity by 2040, as noted by Sylvain Cognet-Dauphin, a senior analyst at S&P Global. “There are two ways to get to that target: build new nuclear, which takes time, or restart and extend existing units,” Cognet-Dauphin explained, emphasizing that significant government involvement is essential for either option.
Extending the lifespan of older reactors or restarting those that have recently been closed presents considerable investment and risk challenges. “If you’re a private operator, investing in nuclear assets is billions, even tens of billions, and they come with construction, waste, and political risks,” he elaborated. In liberalized electricity markets, where revenue projections can be unpredictable, such projects typically necessitate state support or risk-sharing frameworks.
Belgium’s approach reflects a wider trend in Europe, where nations are reconsidering nuclear policies, extending reactor lifespans, or reversing previous closure decisions. During the recent Nuclear Energy Summit in Paris, von der Leyen labeled Europe’s retreat from nuclear energy a “strategic mistake,” asserting that it has worsened the continent’s dependence on fossil fuel imports.
“Nuclear retirements are not considered mainstream in Europe anymore,” Cognet-Dauphin remarked, noting the dramatic shift from attitudes prevalent a decade or more ago. As governments take a more pronounced role in energy strategy, it is evident that nations such as France, with its state-owned EDF, and Poland, which is pursuing state-led nuclear initiatives, are leading the charge.