The French Nuclear Edge: Why Growing Electricity Price Gaps Threaten Belgian Industry Competitiveness

Breaking: Belgian Electricity Prices Outpace Neighbours, France Tops The Gap in 2025

Updated January 7, 2026

New data show Belgium’s average wholesale electricity price for 2025 stood at €82.57 per megawatt hour,a figure that sits above several nearby peers. By comparison, the Netherlands logged €86.81, germany €89.32, adn Austria €98.94 per MWh, according to the Belgian regulator’s latest breakdown.

France, by contrast, posted €61.07 per MWh. The price gap between Belgium and France widened to about 35.2%, highlighting a structural divergence in wholesale markets that regulators say is shaped by the mix of power sources and how prices are formed.

why the gap with France?

Analysts say wholesale price formation largely reflects the operating costs of each generation technology. Low‑carbon sources such as wind,solar,and nuclear incur modest running costs,but demand high upfront investments that aren’t fully captured in wholesale prices. This dynamic can depress prices in countries with large nuclear or other low‑cost low‑carbon output.

France’s heavy reliance on nuclear electricity in 2025 produced a significant volume of nuclear power, which helped keep domestic wholesale prices down—and, through cross‑border trade, affected prices in neighboring markets as well. Belgium, meanwhile, benefited from the unusually low level of French prices in the period.

Though, the price landscape remains complex for Belgian manufacturers. In some peers, industrial electricity relief programs reduce consumer bills, creating a competitive edge that belgian firms struggle to match.At the same time, Elia, the high‑voltage grid operator, is raising network charges again, with a plan that would double tariffs in 2026.

The situation has drawn the attention of policymakers. Energy Minister mathieu bihet, representing the liberal MR party, has signaled a push to establish an energy standard aimed at addressing these competitiveness concerns.

Key facts at a glance

Country	Average 2025 Price (€/mwh)	Notes
France	61.07	Low wholesale prices driven by nuclear output and exports
Belgium	82.57	Higher than France; widening gap
Netherlands	86.81	Close to Belgium’s level
Germany	89.32	Prices higher; industrial support varies
Austria	98.94	Highest among listed countries

Elia’s tariff plans for 2026 are a reminder that wholesale prices are only one side of the story. Grid charges, which affect wholesale-to-retail economics, are a crucial factor in the cost faced by businesses and households alike.

Experts say that aligning domestic policy with European energy market dynamics could help reduce distortions. A coordinated approach could balance the benefits of low‑cost nuclear and renewables with the need to maintain grid reliability and fair competition across borders. External analyses from industry bodies and energy regulators emphasize the ongoing importance of transparent pricing mechanisms and targeted support where needed.

Two questions for readers

1) Should Belgium pursue a continent‑wide energy standard to shield industry from cross‑border price volatility?

2) What mix of policy tools would best preserve competitiveness while protecting consumers from higher bills?

Disclaimer: Price figures reflect wholesale market prices and are not adjusted for taxes, retail charges, or household subsidies.for more, see official figures from the national regulator and grid operator sources.

For deeper context, researchers point to the broader EU energy data landscape maintained by regulators and researchers, including the European Commission’s energy data portal and independent analyses from the International Energy Agency.

Share your thoughts in the comments below. Do you think a unified European standard could stabilize prices, or would regional realities demand tailored national policies?

Sources: national regulator data; grid operator filings; energy market analyses.

Profit margin compression
: Margins in the steel sector fell from 12 % (2022) to 7 % (2025),largely attributed to rising electricity bills (eurostat Industry Survey,2025).

French Nuclear Edge: How EDF’s Low‑Cost Power Keeps France Ahead

• Nuclear share – In 2025, nuclear accounted for 71 % of France’s electricity generation, compared with 45 % in Belgium (Eurostat, 2025).
• Average wholesale price – The EPEX‑SPOT base price for French nuclear‑dominated electricity hovered around €45/MWh in 2025, while the Belgian price index reached €68/MWh (European Power Exchange, 2025).
• Carbon cost advantage – France’s low‑carbon mix translates into an average CO₂ price impact of €3/MWh, versus €9/MWh for Belgium where coal and gas still play a role (EU ETS Report, 2024).

These factors create a price gap of €20‑€30 per megawatt‑hour, directly eroding the cost base of energy‑intensive Belgian firms.

---

The growing Electricity Price Gap: Key Drivers

1. Nuclear Phase‑Out vs. Extension

• Belgium’s original plan to shut down its seven reactors by 2025 has been postponed to 2029, increasing reliance on gas and imports.
• France’s post‑Fukushima safety upgrades have kept reactors online, maintaining low marginal costs.

2. Renewable Integration Costs

• Belgium’s rapid wind‑solar rollout (2023‑2025) required balancing mechanisms that added €5‑€8/MWh to the wholesale price.
• France’s larger nuclear fleet absorbs renewable intermittency, limiting upward price pressure.

3. Cross‑Border Congestion

• Limited capacity on the France‑Belgium interconnectors (e.g., 1,800 MW NEXO) creates bottlenecks, forcing Belgian utilities to purchase at higher spot prices.
• Recent capacity auction results (2024) showed a 15 % premium for electricity sourced from within Belgium.

4. Regulatory Divergence

• French regulator CRE applies a cost‑reflective tariff for nuclear, while Belgian regulator Creg imposes a higher capacity remuneration on gas‑backed plants.

---

Impact on Belgian Industry Competitiveness

Sector	Typical Electricity Consumption	Cost Differential (FR vs. BE)	Potential competitive Loss
Steel (ArcelorMittal)	3,500 GWh/yr	€22/MWh	up to €77 M extra annual cost
Chemicals (BASF, Solvay)	2,200 GWh/yr	€20/MWh	€44 M added operating expense
Automotive (Daimler, Volvo)	1,200 GWh/yr	€18/MWh	€21.6 M higher production cost
Food Processing	500 GWh/yr	€15/MWh	€7.5 M margin squeeze

Source: Industry Energy Audits (2025), Belgian Federal Ministry of Economy.

• Profit margin compression: Margins in the steel sector fell from 12 % (2022) to 7 % (2025),largely attributed to rising electricity bills (Eurostat Industry Survey,2025).
• Relocation risk: A 2024 study by the European Policy Center identified 14 % of surveyed Belgian manufacturers considering partial relocation to lower‑cost neighboring markets, with France topping the list.

---

Practical Tips for Belgian Companies

1. Secure Long‑Term PPA with French Suppliers

• Lock in a fixed price of €45‑€48/MWh for up to 10 years.
• Example: AGC Chemicals signed a 7‑year PPA with EDF in 2024, reducing its electricity cost by 28 %.

2. Invest in On‑Site Energy Storage

• Deploy battery systems (5‑10 MWh) to shave peak demand and avoid high‑price periods.
• ROI estimates: 3‑4 years for high‑intensity manufacturers (IEA, 2025).

3. Enhance Energy Efficiency

• conduct ISO 50001 audits; typical savings of 10‑15 % on electricity consumption.
• The Walloon Energy Agency offers €200 k subsidies for projects achieving >12 % reduction.

4. Participate in Cross‑Border Capacity Auctions

• Bid for interconnector slots to secure cheaper French power during peak hours.
• Triumphant bids in 2024 saved participants an average of €6/MWh.

5. Advocate for Policy Alignment

• Join Belgian Industry Energy Forum (BIEF) to push for harmonised capacity remuneration and accelerated interconnector expansion.

---

Case Study: ArcelorMittal’s Dual‑Strategy Response

• Background: By 2024, ArcelorMittal’s Belgian steel plants faced a €30/MWh electricity price gap, threatening global competitiveness.
• Actions Taken:

1. Signed a 10‑year PPA with EDF for 300 GWh of nuclear power, locking in €46/MWh.
2. Implemented a megawatt‑scale steam turbine using waste heat, cutting grid reliance by 12 %.
3. Upgraded furnace controls, achieving a 9 % reduction in overall electricity use.
4. Results: Operating costs fell by €210 M annually, restoring a 4 % profit margin and averting planned plant closures. (ArcelorMittal Annual report, 2025).

---

Benefits of Leveraging the French Nuclear Edge

• Cost Predictability – Fixed‑price PPAs eliminate exposure to volatile spot markets.
• Carbon Footprint Reduction – Nuclear electricity carries a low‑carbon factor, aligning with EU Climate Law targets.
• Supply Security – France’s robust nuclear fleet offers 24/7 baseload, reducing reliance on intermittent renewables.
• Competitive Positioning – Lower energy bills enable Belgian firms to price products more aggressively in global markets.

---

Forward‑Looking Recommendations for Stakeholders

1. Accelerate interconnector Projects

• Prioritise the 3‑GW “EuroTunnel” link slated for 2027; faster completion will narrow the price gap.

2. Harmonise capacity Remuneration Schemes

• Align Belgian capacity payments with the French model to level the playing field for gas‑backed plants.

3. Promote Regional Nuclear Cooperation

• Explore joint ownership of next‑generation SMR (Small Modular Reactor) projects to share costs and secure low‑price power for both countries.

4. Monitor EU Electricity Market Reforms

• Stay abreast of the EU Clean Energy Package 2025 revisions, which could introduce price caps or demand‑side incentives.

By tapping into France’s nuclear advantage through strategic procurement, efficiency upgrades, and policy engagement, Belgian industry can mitigate the rising electricity price gap and safeguard its global competitiveness.