Spain’s Nuclear Waste Financing Debate

The government is pursuing a substantial 40 percent increase in the fee paid to finance the multi‑billion euro project to dismantle all seven nuclear reactors and manage the associated radioactive waste. The companies that own Spain’s nuclear plants—Iberdrola, Endesa, Naturgy and EDP—have begun arranging strategies to delay the process, buying time to review options and assess their impact.

Foro Nuclear, the industry association representing major electricity firms and the nuclear sector, formally asked the Ministry of Ecological Transition for the full financial and economic data behind the proposed steep rise. The request highlighted concerns that the increase, well above 25 percent, could threaten the sector’s viability. The association also sought an extension for submitting claims against the royal decree, which had a February 2 deadline.

The Ministry, led by Vice President Teresa Ribera, acknowledged the industry’s request. Last week the government provided the firms with the complete economic report supporting the 40 percent rate increase and extended the claims deadline to at least the end of the following month, with February 26 identified by sources familiar with the matter from media outlets to El Periódico de España.

The Nuclear Forum had called for delaying the submission period until all financial information is gathered. Once those data are secured, the details can be refined and deadlines extended, allowing room to negotiate alternatives that do not significantly raise operating costs. The extension applies only to parties requesting more time; others must adhere to the February 2 deadline.

180 million extra load per year

The government is moving toward an approval of a rate of 11.14 euros per megawatt hour produced by nuclear plants, up from 7.98 euros per MWh. The nuclear plants contribute a non‑tax capital allowance to Enresa, the National Radioactive Waste Company, based on the electricity generated.

Across the fleet, Endesa, Iberdrola, Naturgy and EDP currently contribute about 450 million euros annually to the fund financing the radioactive waste plan, which stands around 7.4 billion euros. The proposed increase would push annual payments toward 630 million euros, an additional 180 million euros. This shift could strain relations with regulators and affect profitability for the sector.

The Nuclear Forum notes that the sector remains profitable in light of higher electricity prices. A PwC study prepared for nuclear firms indicates a profitability threshold around 60 euros per MWh on average. Industry insiders say that in recent years the entire output from nuclear plants has often been sold for about 65 euros per MWh by the major electricity companies.

Industry participants argue that profitability has lagged due to tax burdens and property rights costs borne by the plants, currently around 25 euros per MWh and rising. They have urged lower tax liabilities and rules that ensure a reasonable return on investment while keeping facilities viable.

Government’s nuclear plan

The rate increase stems from the new General Plan for Radioactive Waste, known as PGRR, approved by the Cabinet two weeks earlier. It outlines a roadmap for closing and dismantling facilities in the coming decades, managing the waste, and determining financing needs.

The final PGRR version confirms a gradual shutdown of all Spanish nuclear power plants between 2027 and 2035, a plan negotiated by the electricity companies and Enresa in 2019. It envisions seven storage sites, one at each facility, where waste will be stored temporarily for fifty years, followed by the construction of a central repository by 2073. The plan projects a total bill well over 3.7 billion euros in extra costs compared with earlier versions.

Industry players pushed back on the new roadmap, arguing that the billions in additional costs should not fall on the power companies alone through higher rates; instead, they said, the costs should be treated as a system‑wide expense passed on to consumers. The lack of consensus on locating a central repository and the decision to halt the Cuenca project in Villar de Cañas have intensified these debates.

According to the latest investment table in the seventh PGRR, the overall cost for managing radioactive waste and constructing seven repositories is projected to exceed 28.156 billion euros. Earlier projections showed 24.436 billion if only one repository were built, or 26.560 billion with seven, underscoring how inflation and revised estimates alter the financial outlook.

The plan forecasts a total expenditure near 20 billion euros by the year 2100. During the process, major electricity groups proposed that the extra costs be treated as a system expense and billed to all electricity consumers rather than borne directly by the companies. The result would be a higher energy bill for the public.

Polluter pays

Under the polluter pays principle, the government’s plan would require nuclear plants to cover the massive costs of waste management and dismantling, reflecting the capital advantages enjoyed by the facilities rather than a tax. Enresa serves as the state conduit for these activities.

In other countries, energy firms set aside multibillion‑dollar provisions to manage waste after reactors close. Spain’s approach envisions a state‑owned company taking charge of decommissioning and waste management, with accompanying risk.

In 2019 a government agreement with Iberdrola, Endesa, Naturgy, EDP and Enresa laid out a phased closure window for seven reactors between 2027 and 2035. The plan, which retains the possibility of adjusting dates by mutual consent, maps out a sequence: Almaraz I in 2027, Almaraz II in 2028, Ascó I in 2030, Cofrentes closing in 2030, Ascó II in 2032, and Vandellós II and Trillo in 2035. Utilities would require a new agreement for any change to these dates, while a fresh protocol proposes new timelines and methods to avoid disruption to the nuclear program.