The European Commission has cleared Belgium’s capacity mechanism, aimed at ensuring electricity supply after a nuclear phase-out in 2025 (Belgium's seven nuclear reactors (5.9 GW) accounted for 44% of power generation in 2020). The European Commission had opened an in-depth investigation in September 2020, to assess whether a Belgian capacity mechanism to safeguard the security of power supply was in line with EU State aid rules.
This capacity mechanism will replace the Belgian strategic reserve that the Commission approved under EU State aid rules in 2018. Under the capacity mechanism, the beneficiaries will be selected through a competitive bidding process and will be remunerated for their availability. The support will take the form of a capacity payment for the duration of the capacity agreement (which would range between 1-15 years). In exchange, the successful bidders will give their availability to the TSO during stress events experienced by the electricity system. The legal framework to organise the country’s nuclear exit was approved by the Belgian Council of Minister in April 2021. Belgium plans to auction 2.3 GW of new capacity in October 2021, corresponding to two to three gas-fired power plants.
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