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Iberdrola’s executive chairman has warned that electricity prices could rise by over 25 percent if Spain makes the same “big mistake” as Germany and shuts down its nuclear plants.
Ignacio Galán told the Financial Times the Spanish public would pay much higher prices and get a less reliable system if Madrid proceeded with plans to phase out all seven operating nuclear reactors in the country by 2035.
He stressed the need for policymakers to show “pragmatism”, noting that global opinion was shifting towards reopening closed sites in Germany, the US and Belgium or prolonging the lifetime of nuclear plants.
“Can we Europeans be in the position to give up these natural energy resources because of an ideology?” Or are we expected to be pragmatists like Americans? Galán said in an interview.
The Spanish will pay [closing nuclear plants] . . . We have calculated that if the nuclear power plants shut down, the retail prices will rise by 25 to 30 percent. [per cent] “30 per cent”
Decommissioning the nuclear fleet in Spain would cause an increase in the wholesale electricity price of about €37/MWh, causing electricity bills to soar by 23 per cent for the domestic sector and small and medium-sized businesses, and by 35 per cent for industry, according to PwC.
The governments of several countries including the US and Japan have started to work on extending the life span of their nuclear reactors fleets. This is to meet the rising demand for electricity and to address energy security concerns related to the reliance on imported oil.
In its World Energy Outlook report published in October, the International Energy Agency revised upward its estimates for electricity consumption in 2035, stating that it would be 6 percent more than expected last year.
In Germany, Friedrich Merz and his Christian Democrats (CDU) — who won last month’s federal elections — have promised to explore whether it is possible to resurrect the three nuclear plants that were shut down in 2023.
Former operators of these facilities have not been enthusiastic about the idea. They warn that even if it were theoretically possible, this would be unlikely to be an economically viable option.
“Technically, everything is possible . . . ”Technically, everything is possible. But at the end of the day, the question is, does it really matter?” Markus Krebber is the chief executive of RWE.
Spain is among the few nations that are sticking to their plans to close nuclear plants. But the decision is generating a growing amount of discord as the closure of the first reactor — at the Almaraz plant — looms in 2027.
Iberdrola Naturgy Endesa were the station owners who decided to close their stations in stages, under pressure of a socialist government. The government was aware of public fears about waste disposal and safety.
The heads of Iberdrola, Endesa and others have made public calls for a change in thinking and stated that plants could be extended to run longer.
Galan claimed that shutting down Spain’s reactor fleet would have a negative effect on grid reliability. Iberdrola’s analysis showed the number of power curtailments or possible blackouts may increase.
The Spanish Government has rejected lobbying by the industry to reverse plans for closing nuclear power plants. It has argued economic logic dictates nuclear power give way to renewables, because wind and solar energy generates substantially more power for the same price.
Sara Aagesen is Spain’s Energy Minister. She said last week the government is in dialogue with the owners of the plants, but also added that: “For the moment, the truth is there are no news and no formal requests from the companies to discuss the possibility modifying the nuclear schedule.”
The Foro Nuclear is a Madrid-based lobby group that represents plant owners. It said the government should make the first move and cancel the ministerial orders of closure it issued for two Almarez reactors.
Spain has already become a leader in the world of wind and solar energy. Its goal is to generate 81 percent of its electricity through renewable sources by 2030.
Amanda Chu reports from Houston
