Is it possible to nationalize the Almaraz nuclear power plant? The proposal forwarded by the president of the Extremadura regional government to the central administration has sparked a fresh chapter of political controversy in Extremadura, oscillating between astonishment and surprise at this new move that bears the imprint of Maria Guardiola.
Incoherent, Bolivarian, or communist are among the adjectives used yesterday by Unidas por Extremadura, Vox, and the PSOE to describe the idea of keeping the plant under state operation from 2028. It would be laughable if the matter were not so serious, said Joaquín Macías, a deputy from Unidas por Extremadura.
From the government side, Sara Aagesen, the minister for Ecological Transition, responded bluntly. I will be blunt: this government has not raised taxes on nuclear plants. Instead, the responsible stance is to require the owners of the plants to cover the costs of dismantling and waste management under the principle that the polluter pays.
Beyond the political clash, is nationalizing Almaraz really feasible? Does the government have legal tools at its disposal? Yes, according to Pedro Brufao, a jurist and professor of Administrative, Economic and Competition Law at the University of Extremadura. It is possible but with many constraints because it could affect the European Union’s internal electricity market. It remains another question whether the government would roll back its plan not to renew the reactors.
The electricity market
To nationalize Almaraz, the state would have to take control of the company that currently operates the plant, owned by Iberdrola 52.7 percent, Endesa 36 percent, and Naturgy the remaining 11.3 percent. There are recent Spain-wide precedents for state intervention in difficult assets, such as the bank rescue after the 2008 crisis or Sareb, created to manage properties stranded by the housing bust.
Yet the hurdle lies in the energy sector, which operates in a fully open and liberal market with many peculiarities in Spain. Brufao notes that even if it is legally possible, the state taking over these activities would be highly complex, especially given the country’s current energy transition toward renewables.
Depending on the state’s stake in the plant, there could be restrictions from the European Union’s competition authority. Still, any hypothetical nationalization would require a careful reading of the relevant legal texts and their practical application.
The closest example is France. Paris has strengthened its approach to nuclear energy. EDF, the main generation and distribution company, also handles plant management, and the government controls an 85 percent stake. In Spain, Iberdrola remains the leading partner at Almaraz and Cofrentes, and owns 49 percent of Trillo-Guadalajara. Endesa is the principal shareholder of the Ascó and Vandellós plants.