Belgium Pays €27 Million in Nuclear Subsidies for First Time

For the first time this century, Belgium is subsidizing its nuclear reactors. The federal government has paid over 27 million euros to energy companies Engie and Luminus to keep the Doel 4 and Tihange 3 nuclear reactors operational, according to VRT NWS. The revelation has ignited debate about the financial viability of the country’s nuclear extension strategy and has become a central issue for the new De Wever government, which is now exploring a full state takeover of all seven Belgian nuclear reactors.

The Financial Mechanics Behind the Subsidy

The 27 million euro payment arises from a specific contractual mechanism embedded in the so-called “Phoenix deal” signed by the previous De Croo government in late 2023. Under the deal, the Belgian state became a 45% co-owner of Doel 4 and Tihange 3, alongside Engie-Electrabel (45%) and Luminus (10%).

Since the reactors restarted operations in late 2025 after refurbishment, the state received approximately 31 million euros from electricity sales. However, the contract guarantees Engie and Luminus a 7% return on their investment. When market electricity prices fall below the guaranteed “strike price” of 90.13 euros per megawatt-hour, the state must compensate the difference. In the first six months, this compensation amounted to 58 million euros paid to the two companies, resulting in a net loss of 27 million euros for Belgian taxpayers.

As VRT NWS journalist Luc Pauwels summarized: “Our government received 31 million, but had to repay 58 million.”

A Historic Reversal

Belgium passed a law on January 31, 2003, mandating the phase-out of nuclear power by 2025. For two decades, this was considered settled policy. The Russian invasion of Ukraine in February 2022 triggered a severe energy crisis across Europe, prompting the Belgian government to reverse course in March 2022 and decide to keep the two newest reactors operational for an additional 10 years.

The resulting Phoenix deal, finalized in December 2023 and approved by the European Commission in February 2025, made the state a co-owner but also saddled it with significant financial obligations. Beyond the strike price mechanism, the state must cover 45% of modernization costs — estimated at nearly 1 billion euros based on Engie’s calculations.

Political Fallout and Renegotiation Efforts

The current government of Prime Minister Bart De Wever (N-VA), which took office after the 2024 federal elections, has been highly critical of the Phoenix deal. “That deal is going to cost us hundreds of millions,” De Wever said, as reported by VRT NWS.

Energy Minister Mathieu Bihet (MR) has argued that the 7% guaranteed return for Engie is too high and wants the strike price reduced. However, negotiations with Engie broke down in November 2025. Bihet has stated that Engie should be satisfied with less, which would allow the guaranteed price to be lowered.

Experts warn that the situation could worsen. An anonymous energy expert told VRT NWS: “It could be that in a few years we have to pay hundreds of millions extra.” If market electricity prices fall significantly below 90.13 euros per MWh in the coming years, the state could face substantially larger subsidy payments.

The Nationalization Option

On April 30, 2026, the De Wever government announced exclusive negotiations with Engie for a complete state takeover of all seven Belgian nuclear reactors, as reported by VRT NWS and The Brussels Times. The government aims to conclude a “Head of Terms” agreement by October 1, 2026.

A full state takeover would eliminate the complex profit-sharing and guaranteed price mechanisms that produced the current subsidy payments. However, it would also transfer all operational and financial risks — including potential losses — entirely to the Belgian state and taxpayers.

What’s Next

The Belgian government is currently assessing the value of all seven reactors and whether extending the remaining five (Doel 1-3 and Tihange 1-2) is economically viable. A decision is expected by autumn 2026. If the assessment is positive, the Phoenix deal — and the subsidies flowing to Engie and Luminus — could be replaced by full state ownership.

For now, Belgium finds itself in an unprecedented position: instead of nuclear power generating revenue for the state through taxes, it is costing the state money through subsidies for the first time since the early 2000s. The outcome of the ongoing negotiations will determine whether this marks a temporary anomaly or the beginning of a new, more costly chapter in Belgium’s nuclear energy story.