Signature of the convention between ENGIE and the Belgian government for extending Doel 1 and Doel 2 and new nuclear contribution system
ENGIE confirms that it signed yesterday with the Federal Government of Belgium a convention for a 10-year extension to operation of the Doel 1 and Doel 2 nuclear reactors. This agreement is part of the overall framework of the new nuclear contribution system with following modalities.
The planned amounts for the reactors Doel 3, Doel 4, Tihange 2 and Tihange 3* are (at 100%):
- A fixed amount of 200 million euros in 2015
- A fixed amount of 130 million euros in 2016
- From 2017, the contribution will be calculated according to a variable formula taking account of changing costs, production volumes and electricity prices.
Under the terms of this agreement, the contribution will be equal to 34% of the margin with a minimum of € 150 million per year over the 2017-2019 period for the sector. From 2020 and every three years, the minimum contribution will be reviewed under the control of the Commission for Regulation of Electricity and Gas (CREG) based on the economic reality at that time.
Specifically, for the Doel 1 and Doel 2 extension, an annual fee of 20 million euros will be payable from 2016 to 2025. This fee will be paid into the Belgian energy transition fund created by the law of 28 June 2015.
This convention is subject to the approval of two laws by the Belgian Parliament.
The agreement concluded also includes the resolution of an ongoing a dispute between Electrabel and Belgian state (law of 8 December 2006 on unused industrial sites) for an amount of 100 million euros in 2015 and 20 million euros in 2016.
The agreement establishes a stable legal and economic framework for the future. On this basis, ENGIE will invest 700 million euros in Doel for the 10-year extension to its plants, in addition to the 600 million euros for the extension of Tihange 1 (at 100%). Besides the nuclear Engie will also invest in the next decade in renewable energy, energy storage, gas, and research and development.
ENGIE, with its 18,000 employees in Belgium, aims to be leader in the energy transition by offering innovative solutions to customers and producing closer to them with a flexible and very diversied production fleet.
*Conditions relating to Tihange 1, whose operation was extended for 10 years by the previous legislature, remain unchanged. They are subject to a tripartite agreement between the Federal Government and the two co-owners of Tihange 1, i.e. EDF and ENGIE. Doel 1, Doel 2 et Tihange 1 are subject to contributions by their extension date in 2015.
ENGIE develops its businesses (power, natural gas, energy services) around a model based on responsible growth to take on the major challenges of energy’s transition to a low-carbon economy: access to sustainable energy, climate-change mitigation and adaptation, security of supply and the rational use of resources. The Group provides individuals, cities and businesses with highly efficient and innovative solutions largely based on its expertise in four key sectors: renewable energy, energy efficiency, liquefied natural gas and digital technology. ENGIE employs 152,900 people worldwide and achieved revenues of €74.7 billion in 2014. The Group is listed on the Paris and Brussels stock exchanges (GSZ until 30 July 2015 included, ENGI from 31 July 2015)and is represented in the main international indices: CAC 40, BEL 20, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe and Euronext Vigeo (World 120, Eurozone 120, Europe 120 and France 20).