Laureano Álvarez
Partner at Monitor Deloitte Spain“I'm optimistic. The operation of nuclear power plants will be extended"
Laureano Álvarez is a partner in the energy strategic consulting firm Monitor Deloitte in Spain. In his more than 20 years of experience, he has worked with clients in the energy sector across Europe, Latin America and the Middle East and led various analyses on the implications of the energy transition. The recent study he presented at the CEOE, “The Contribution of Nuclear Energy to Industrial Competitiveness in Spain” (here in Spanish), concludes that “extending the operation of Spanish nuclear power plants is a key element for ensuring security of supply and supporting economic growth.”
From your experiencie, how has the energy debate in our country evolved in recent years?
Until 2022, the public debate around energy was mainly focused on reducing emissions. However, Russia’s invasion of Ukraine changed everything: gas prices soared, and the prospect of not having access to natural gas became a real possibility, shifting the debate toward security of supply. At the same time, the closure of various industries as their competitiveness in global markets deteriorated has increased the importance of energy prices.
In the public debate, nuclear energy is often approached from highly polarized positions. Do you think there is a need for analyses that are more technical than ideological?
Energy policy involves economic priorities, geopolitical considerations and the availability of domestic resources, as well as social and environmental factors. However, when nuclear generation is discussed, everything becomes more intense, and ideological positions often condition the technical perspective. This also introduces distortions into the debate, such as placing the decision to extend the operation of existing nuclear power plants on the same level as the decision to build new units.
"Nuclear energy is an electricity-generating technology that proviedes a competitive and stable cost"
One of the key messages from the report you led on "The contribution of nuclear energy to industrial competitiveness in Spain" is its impact on electricity prices and system stability. Why are these factors so critical for industry?
Energy is a very significant cost for industry. Spanish companies spent €15.5 billion on energy in 2023. This represents 25% of companies’ operating profit, and in sectors such as metallurgy, it can be as high as 95%. In addition, industry values other factors such as cost predictability and stability. Industrial energy costs reached €24.5 billion in 2022, which doubles the level recorded in 2019. In this context, nuclear energy is an electricity-generating technology that provides a competitive and stable cost.
What practical implications would maintaining nuclear generation have for electro-intensive sectors, as opposed to a scenario without nuclear?
The difference is very significant. Extending the operation of nuclear power plants would make it possible to reduce electricity prices and save the industrial sector €1.4 billion, which could then be allocated to job creation, new investments, tax contributions or dividend distribution. This impact would be widely distributed across Spain’s geography and across different industrial sectors.
This report comes at a time of intense debate regarding the future of nuclear energy. How do you think it can contribute to general decision-making?
Indeed, much has been written about nuclear energy: its contribution to the electricity system, safety, technology, capacity to create jobs, taxation and fiscal issues, among other aspects. In this report, we wanted to provide a perspective that goes beyond the nuclear sector itself and focuses on how the competitiveness of industry in Spain could be affected. We have also sought to present technical arguments based on economic models of the electricity market and real operational data from industry, always from a rigorous analytical perspective.
"The study has been conducted from a rigorous and analytical perspective"
We are seeing a return to nuclear energy in many countries. What has changed to induce this renewed momentum for the nuclear sector?
I believe there are several factors that have recently driven renewed momentum for nuclear energy. On the one hand, as mentioned, nuclear generation makes a clear contribution to security of supply and serves as insurance against price volatility from other electricity generation technologies. On the other hand, the growth of AI and data centers has led major technology companies to sign power supply agreements backed by nuclear power plants. Finally, nuclear energy is a low-emission source of electricity, which supports efforts to combat climate change.
Do you think Spain is making a mistake by moving in the opposite direction?
I'm optimistic; I believe that technical arguments will prevail over ideology, and that the operation of nuclear power plants will be extended beyond the dates currently set in Spain’s nuclear phase-out schedule.
The energy transition requires major investments. How does nuclear fit into a balanced strategy for decarbonization and economic competitiveness?
Nuclear power plants provide firm, reliable capacity to the system, reducing the immediate pressure to deploy large-scale storage. They help cut emissions, thereby supporting progress toward climate targets, and contribute to lower and more stable electricity prices; this helps to protect the competitiveness of industry.
"Nuclear power plants provide firm capacity to the system and protect the competitiveness of our industry"
Spain has a very balanced generation mix that we must protect, as it provides security of supply and low emissions at a very competitive cost compared with neighbouring countries.
The study indicates that extending nuclear operations would prevent the emission of14 million tonnes of CO₂ per year. Can you specify what risks Spain’s decarbonization efforts would face if the current shutdown schedule is maintaine
To put this into context, Spain’s power system emitted 29.5 million tonnes of CO₂ in 2025, or 22 million tonnes when considering only the mainland. Extending the operation of nuclear power plants could reduce CO₂ emissions by 14 million tonnes compared with the current phase-out scenario. This reduction would be decisive for meeting Spain’s decarbonization targets, as well as for the production of renewable fuels using grid electricity, whose certification requires low-emission power. It would also strengthen the competitiveness of these energy carriers in European and international markets.
"The closure of nuclear power plants would pose a clear risk of territorial inequality and depopulation"
Has Monitor Deloitte analyzed the social and economic implications of shutting down nuclear power plants in local communities?
The truth is that we have not carried out a specific analysis of the social and economic implications for local communities, and I am sure this would be a very interesting topic for future work. However, the contribution that nuclear power plants currently make to their surrounding areas is undeniable, through highly qualified direct and indirect employment, as well as taxes and local revenues. Shutting down nuclear power plants would pose a clear risk of loss of territorial cohesion and depopulation.
"I would like to call for dialogue based on technical and economic criteria"
You have stated that we must make use of the technologies and resource we already have because they will provide reliability to the system. In your opinion, aare we fully aware of the impact that energy-related decisions have on employment and overall wellbeing?
Probably not entirely. Energy is often discussed in technological or environmental terms, but its implications are broader: electricity prices affect competitiveness; industry is a source of skilled employment and wealth for society; and, something that is often overlooked, nuclear power plants create high-quality jobs and help drive local economies.
Would you like to add anything?
Two final points: first, making the most of the low-emission technologies already available, such as nuclear, allows us to gain time, stability and competitiveness. Finally, I would like to call for dialogue based on technical and economic criteria.
