The logotype of Iberdrola is illuminated atop the 165-metre (541 feet) Cesar Pelli designed Iberdrola Tower, in Bilbao, Spain, February 29, 2024.
Spain currently plans to close all its nuclear reactors by 2035 under its national energy transition strategy. According to the existing schedule, the phase-out would begin in 2027 with the shutdown of the first reactor at the Almaraz plant, located in western Spain. The second reactor is planned to close in 2028. However, the plant’s operators have jointly agreed to seek an extension, citing the importance of maintaining stable electricity generation while the country expands renewable energy capacity.
The government has encouraged the plant operators to present a revised timetable while emphasizing several key conditions: that the companies must guarantee the security of electricity supply, uphold safety standards, and ensure that any extension does not impose financial costs on taxpayers. The discussions between the energy companies and the ministry are ongoing, as officials assess the technical and regulatory implications of prolonging operations.
Spain’s fiscal framework for nuclear energy remains one of the main challenges in these negotiations. Industry participants have repeatedly expressed concern that high taxes on nuclear generation reduce competitiveness and discourage investment in plant maintenance and safety improvements. The government has said it is reviewing these fiscal conditions as part of broader efforts to balance energy security, environmental goals, and financial sustainability.
Iberdrola holds a controlling 53% stake in the Almaraz plant, while Endesa owns 36% and Naturgy about 11%. Iberdrola and Endesa—controlled by Italian energy group Enel (ENEI.MI)—are the largest stakeholders in Spain’s nuclear energy sector. Naturgy and Portugal’s EDP (EDP.LS) also hold minority shares in several other Spanish nuclear facilities.
The Almaraz plant, one of Spain’s key power generation sites, has long played a central role in providing consistent electricity supply to the national grid. Extending its lifespan would give Spain additional time to strengthen renewable capacity and upgrade its energy infrastructure before a complete nuclear phase-out.
In a separate development, Russia’s second-largest oil producer, Lukoil, announced on Monday that it will sell its international assets. The company has not released further details regarding the buyers or the timeline for these transactions.
