Large energy companies are ordering a production halt at several nuclear plants to avoid operating at a loss as electricity prices collapse and in the midst of a conflict with the government over taxes and charges that nuclear plants bear. The wholesale electricity market has been tumbling for days and is expected to stay weak: this Saturday’s electricity price is projected to be the lowest in a decade, averaging 0.59 euros per MWh with 13 hours priced at zero euros. (Source: historical market data and industry reports)
In recent weeks Iberdrola and Endesa, the country’s major nuclear operators, had already been cutting reactor output due to the market’s low prices and the strong renewable generation that leaves less room for other technologies. Now, outright shutdowns of generation are anticipated. (Source: company disclosures and market analyses)
Iberdrola will halt production for several days at the Cofrentes plant in Valencia and the Almaraz I plant in Extremadura after failing to align prices with those in the wholesale electricity market. Authorities and local communities have been duly notified. In such a stoppage, it is common for plants not to resume production for at least a week, sometimes ten days. (Source: Iberdrola statements and regulatory notices)
Endesa has also faced initial challenges matching the price for its Ascó nuclear plant in Catalonia. The grid operator, Red Eléctrica de España, has redirected its output to technical constraint markets and has not allowed the two reactors at Ascó to suspend operations for supply security in the Catalan market. (Source: grid operator communications and industry updates)
Conflict with the Government
The stoppage at nuclear plants comes amid a clash with the government over taxes that fund nuclear facilities and a new tax increase the executive is considering. The Ministry for Ecological Transition paused and then reversed a move to push through a sharp tax rise of almost 40 percent aimed at financing decommissioning and waste management. The government withdrew the draft decree and began the process anew without pre-announcing any specific increase. (Source: government statements and press coverage)
The announced hike had mobilized the major utility owners—Endesa, Iberdrola, Naturgy, and EDP—who filed strong objections and launched legal action before the Supreme Court against the new National Plan for Radioactive Waste and the decision to abandon a project to build a single nuclear waste store in Villar de Cañas, Cuenca. (Source: industry and court filings)
Utilities argue that existing taxes and charges already push about 25 euros per MWh produced, roughly 35 to 40 percent of plant revenue, and the proposed rise would lift this to around 28 euros per MWh, close to half of total turnover. A PwC report estimated total annual tax and Enresa rate costs at about 1,566 million euros. (Source: tax analyses and PwC report)
The big electricity companies are pressing for a comprehensive reform of nuclear taxes to avoid the steep Enresa rate increase and to safeguard nuclear sector profitability. This confrontation is set to be a defining battleground as they push to reduce fiscal burdens and secure their margins. (Source: industry statements and regulatory discussions)
The Nuclear Forum is calling for the revenue from the nuclear fuel and spent fuel waste tax to be directed toward Enresa’s disposal fund for decommissioning and waste management, and for Enresa itself to stop paying a special tax on its nuclear stores that ultimately affects the plants. This would, the sector says, remove the need to raise the rate on nuclear plants further. (Source: sector statements and policy proposals)
Experts warn that the heavy tax load on plants and the current price collapse may prevent the sector from covering operating costs, fueling production shutdowns at nuclear facilities. (Source: sector analyses and market watchers)
Prices Collapse
Electric prices are tumbling and hitting new lows as renewable energy growth accelerates. The wholesale market, where operators buy and sell electricity for the next day, has fallen sharply, with multiple hours priced at zero euros in recent weeks. The average daily price for this Saturday is projected to be 0.59 euros per MWh, the lowest since February 2014 and among the five lowest in history, including two fully zero-day prices. (Source: OMIE provisional data and market records)
The surge of renewables in the Spanish market is not only advancing environmental goals but also stabilizing demand-driven prices. Still, the dramatic price drop distorts plant economics, raising concerns about how current plants will cover operating costs and how investment will flow into new renewable capacity. (Source: energy balance assessments and market analysis)