Nuclear Energy in Spain: Stability, Transition, and Tax Pressures

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In 2021, Spain shifted its electricity generation rankings, with wind energy taking the top spot while nuclear power remained a steady contributor. Nuclear plants continued to provide about one-fifth of the nation’s total electricity, a share that had held for a decade, according to Ignacio Araluce, chair of the Nuclear Industry Forum. He noted that wind surpassed nuclear that year, marking a historic normalization in Spain’s energy mix while nuclear retained a crucial role during the ecological transition.

Araluce commented, “Nuclear was the technology with the highest output over the past ten years, and this year we are second, which is encouraging: the first is wind power.” He emphasized the sector’s fundamental contribution to the transition and its long-standing stability within the energy system.

He added that Spain’s seven operating nuclear reactors, with a total installed capacity of 7,398.7 MW (out of 112,000 MW nationwide), produced 54,040 gigawatt hours at roughly 86.7 percent plant availability.

In this framing, the sector representative underscored the essential role of nuclear power in the national grid and its contribution to a lower carbon footprint. He argued that nuclear helps reduce emissions while maintaining a secure and continuous electricity supply, a point he framed as a contribution to the broader greenhouse gas reduction goals.

Ignacio Araluce, President of the Nuclear Energy Forum European Press

“Nuclear energy remains vital because it provides base load power, is stable, predictable, and continuously generating without the same peaks and troughs seen with some renewables. That is why it is absolutely necessary in the energy transition,” Araluce stated, highlighting that 68.5 percent of Spain’s electricity is CO2-free, up from 2020, and noting that this aligns with the 30.36% share of emission-free electricity attributed to nuclear energy.

Renewal of usage authorizations

Araluce explained that the drop from first place was due to renewables growing while nuclear power kept stable installed capacity and output. He suggested this trajectory would align with planned shutdowns for several reactors in coming years, while production hours could increase further in the near term.

He also noted that the operating licenses for Ascó I and II (Tarragona) and Cofrentes (Valencia) were renewed in 2021.

On the broader energy landscape, Araluce acknowledged the many advantages of renewables, such as low fuel costs and favorable production economics, but pointed to intermittency as a drawback. He noted wind power reached about 2,100 hours of operation per year and solar around 1,400 hours, compared with roughly 8,000 hours of nuclear. To support nuclear-scale generation through photovoltaics would require roughly six times the current installed capacity and advances in regulation and storage to address variability.

From a European perspective, Araluce welcomed the European Commission’s December 31 proposal as a strong endorsement of nuclear energy, even as some aspects of the taxonomy remain debated for the energy transition.

Asco nuclear power plant ef

“Now they recognize us as absolutely necessary during the transition.” He explained that this shift helps the sector access markets and secure financing for the maintenance and operation of nuclear facilities.

He observed that Europe is experiencing a renewed momentum for nuclear energy and expressed optimism about global construction projects, noting that the Ukraine crisis has underscored the strategic importance of nuclear power for reducing dependence on external energy sources. He added that fuel costs for nuclear are relatively modest compared with gas or coal, and he suggested that nuclear energy has a healthy role worldwide.

Spain’s unique context

Araluce stressed that Spain’s situation differs, as the shutdown plan for the nation’s nuclear plants—negotiated between plant owners and Enresa, the waste management agency—will extend through 2027 to 2035.

The next decade, he warned, will test the economic stability of these installations, which currently face heavy taxation and uncertain future electricity prices. “We are concerned about the economic stability of nuclear power plants,” he cautioned.

He noted that the cost of nuclear generation is around 60 euros per megawatt-hour, yet owners have been selling at approximately 70 euros per megawatt-hour for the upcoming year.

windmills field Shutterstock

Araluce argued that nuclear plants do not gain easy windfall profits; they must navigate high taxes and uncertain future prices while committing to operate until their official closures in line with the National Integrated Energy and Climate Plan. He warned that guaranteeing long-term viability is challenging if fiscal conditions remain unstable and future energy prices are unclear.

He indicated that the industry is not pressing for an immediate extension of the shutdown schedule, even as it scrutinizes the latest draft of the seventh National Plan for Radioactive Waste, which proposes higher funding for waste management.

“Costs have increased”

“Costs have risen, and the reasons are unclear. Nuclear plants agreed to a cost-based production framework, but changes midstream require adjustments. That cannot continue,” he asserted.

Concerning decommissioning, he reminded that the state and Enresa bear responsibility for waste, while plants must meet payment obligations. He criticized the idea of a central temporary storage facility when plans call for decentralized waste management at each site by 2073, and a deep geological repository later. He warned against shifting the burden to local sites and stressed that future storage arrangements must be financially predictable for the industry.

He also cautioned that if the plan predicts a 2040 completion for the centralized repository and a ten-year build, seven sites would need to house waste by 2073, freeing land from central storage. He concluded that the industry does not welcome surprises in waste policy and that the state and payers must bear waste handling costs, though the industry will not accept extra charges arising from issues outside plant operations.

Environment department contact address: (redacted for this publication)

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