Engie halts Belgian nuclear extension plans, books Eur2.9 billion impairment

London — Engie has halted preparation work for 20-year lifetime extensions of two nuclear reactors in Belgium, the French utility said in annual results released Feb. 26.

Belgium's nuclear phase-out is set to remove 5.93 GW of capacity by 2025. Last September the country's new coalition government committed to the phase-out but kept the possibility of life extensions for two units open, with a final decision due by November 2021.

"Following the announcements of the Belgian government in Q4 2020, it has been decided to stop all the preparation works that would allow a 20-year extension of two units beyond 2025, as it seems unlikely that such an extension can take place given the technical and regulatory constraints," Engie said.

The decision, as well as changes in commodity price scenarios, resulted in an impairment of Eur2.9 billion for the company's Belgian nuclear assets, it said.

A deterioration in forward power price forecasts has been a theme in European utility results this year. On Feb. 25 the UK's Centrica said its GBP525 million impairment was "largely the result of a reduction in price forecasts" as well as availability issue across the UK nuclear fleet.

Engie said it remains committed to Belgium's security of supply.

"Alongside renewables, the group is also developing projects of up to 3 GW of gas-fired power plants," it said.

These and other gas plant projects in Belgium are likely to proceed only if successful in a planned Capacity Remuneration Market. A first auction is due in the second half of 2021, if and when the mechanism is approved by the European Commission.