Brussels is making a 360-degree turn in its energy agenda. In a letter sent this Monday to the twenty-seven heads of Government of the European Union, the President of the European Commission, Ursula von der Leyen, has advocated avoiding the “premature closure of assets such as existing nuclear power plants that can continue to provide reliable electricity”. A nod that, in the Spanish landscape, points directly to the Almaraz nuclear power plant, where electricity companies have requested to extend its useful life by three more years, until 2030.
The letter arrives three days before European leaders sit at the table of the European Council to coordinate the first measures aimed at containing the economic consequences of the war with Iran. In Brussels, they insist that the objective is to manage the energy shock and protect the European economy. Von der Leyen believes that the current energy system generates significant challenges for some Member States. In particular, she points out that in the marginalist model of the electricity market, the high price of gas ends up conditioning the cost of electricity.
“In addition to faster structural change, we must mitigate the impact of the cost of fossil fuels during periods when the price of gas is high,” explains the community president in her letter. In the document, the Executive also recalls that Member States already have instruments to offer immediate relief to industries most affected by rising energy prices, especially in the current geopolitical context. One of these tools is the existing framework of state aid, which allows Governments to support the most exposed sectors.
The Commission also mentions another possibility that some countries have already applied: limiting the price of electricity generation from gas. “It is another instrument that some Member States have used,” notes the Community Executive. However, Brussels warns that it will evaluate case by case the impact of these national emergency mechanisms on the internal market.
Tax cuts and changes in the electricity bill
The President of the Commission also considers that there is room for reducing the tax burden on electricity. Among the options raised is the possibility of eliminating certain non-energy levies from electricity bills, as well as ensuring that electricity has a more favorable taxation than fossil fuels.
Brussels' intention is to send a clear signal to member states so that they use all available instruments with the aim of containing the impact of energy volatility on households and industry.
It is true that the community's position on nuclear energy does not surprise in the European capital. Just a few days ago, Von der Leyen openly defended the relaunch of nuclear energy on the continent and announced the preparation of a new European strategy for the development of small modular reactors (SMR), with the aim that this technology will be operational at the beginning of the next decade.
During her speech at the Nuclear Energy Summit held in Paris, the President of the Commission assured that Europe needs to combine nuclear energy and renewable energies to guarantee affordable electricity, energy security, and industrial competitiveness. According to Von der Leyen, the structurally high price of electricity in Europe affects both the cost of living for citizens and the competitiveness of industry, at a time when technologies such as robotics or artificial intelligence will require large quantities of clean energy.
The debate about the future of Almaraz
At the Almaraz nuclear power plant they maintain that the international situation reinforces the need to maintain its activity to guarantee a stable, predictable and independent supply both for Spain and for the entire continent.
The Periodic Safety Review, which has the endorsement of the Nuclear Safety Council, has certified compliance with all technical requirements to operate until 2030. However, the Spanish Government maintains a cautious position. The cabinet led by Vice President Sara Aagesen remains awaiting a new report from the regulatory body to determine if one of the red lines set by the Executive for authorizing any extension of the useful life of the plants is met: nuclear safety.
The other two conditions established by the Government are that the extension does not entail an additional cost for consumers and that does not compromise the stability of the electrical system.
Moncloa embraces the renewables
The energy head of the Spanish Executive reiterates in every public intervention that renewable energies constitute the country's main strength. In fact, when Von der Leyen defended the European impulse for nuclear energy, the vice president responded by pointing out that Spain “contributes in what is truly competitive and strategic: renewable energy”.
La Moncloa prepares its strategy for Thursday's summit around that same idea: betting on the most competitive energies to break the dependence on external fossil fuels. As confirmed by the vice-president herself upon her arrival at the Energy Council, the Ministry is working to consolidate an alliance among several European partners in defense of renewable energies and the system of carbon credits as pillars of community energy policy.
“Energy is used as a weapon of war. Spain's vision is that we have to accelerate the energy transition”, Aagesen has stated. The position of the Government of Pedro Sánchez is based on the idea that a faster energy transition would allow reduce European dependence on fossil fuels, a vulnerability that has been especially exposed after the geopolitical crises of recent years.
According to the vice president, the Spanish case demonstrates that the volatility of energy markets has a lesser impact when the weight of renewable energies in the energy system increases.