Belgium and Engie postpone nuclear takeover agreement deadline to 4 November

Postponement of Heads of Terms

The Belgian federal government and French energy group Engie have postponed the target deadline to conclude a preliminary agreement on the state acquisition of nuclear assets, an initiative codenamed Operation Aurora. Under the initial letter of intent signed on 29 April 2026, both parties had established 1 October 2026 as the date to finalize the Heads of Terms and determine the start of formal takeover negotiations. On Wednesday evening, a joint statement issued by the Belgian state, Engie SA, and Electrabel NV/SA, alongside the Prime Minister and the Energy Minister, confirmed that the target date has been moved to 4 November 2026. The postponement provides additional weeks for both sides to finish complex evaluations.

Given the complexity and scale of the planned operation, additional time is needed to enable the parties to finalize their ongoing analyses and discussions.

Advisory reviews and decommissioning liabilities

Throughout the summer, investment bank Rothschild & Co and consulting firm KPMG conducted in-depth assessments on the financial, legal, and technical implications of transferring the nuclear reactors to public ownership. A central issue in the talks involves dividing the long-term operational and financial risks associated with the reactors. While the previous federal government secured an agreement with Engie that set a maximum cap on nuclear waste disposal costs, an outright takeover shifts reactor dismantling responsibilities onto the state. These decommissioning costs are projected to run towards 12 billion euros. Alongside financial liability assessments, the summer review evaluated Belgium's broader future energy mix, analyzing how nuclear capacity will function alongside offshore and onshore wind power, utility-scale battery storage, and cross-border electricity trading with neighbouring European countries.

Nuclear capacity targets

Five of Belgium's seven nuclear reactors are currently shut down. Only Doel 4 and Tihange 3 remain operational for an additional ten-year period under an arrangement negotiated by the previous government. Together, Doel 4 and Tihange 3 provide two gigawatts of generation capacity. Prime Minister Bart De Wever considers this two-gigawatt output inadequate for safeguarding long-term security of supply, establishing a national target of four gigawatts of nuclear generation capacity to meet rising electricity demand. De Wever has been critical of the previous administration's negotiations with Engie.

They temporarily patched up a house with foundation problems and large cracks in the hope that it could stand for ten years. This while we all know how fast electricity demand is rising.

Industrial strategy and next steps

Federal Energy Minister Mathieu Bihet stated ahead of the decision that adhering rigidly to the 1 October date was not essential, noting that substance took priority over calendar deadlines. Bihet argued that Belgium had lost substantial time in recent years by adhering strictly to the planned nuclear phaseout policy. If the nationalisation is finalized, the Belgian government does not intend to operate the nuclear facilities itself. Prime Minister De Wever plans to bring external energy companies on board to manage the plants after the acquisition, with French power company EDF having previously been considered as an operating partner.