Óscar Barrero
Partner in charge of energy at PwC Spain“There is no objective reason to justify shutting down nuclear energy”
Óscar Barrero, an industrial engineer with an Executive MBA, has over 23 years of experience in consulting for the energy sector, where he developed his entire professional career. In this interview with Foro Nuclear, PwC Spain's head of Energy states that “the nuclear shutdown will put the entire country at risk, as we will feel the negative effects on electricity prices, as well as in terms of the environment, socioeconomics and energy supply .”
The consulting firm PricewaterhouseCoopers (PwC) has conducted a series of analyses on the current status and prospects of nuclear energy, including a recent study on the impact of the nuclear shutdown in the Spanish autonomous community of Catalonia. Barrero affirms that, according to their findings, shutting down nuclear power plants would pose a significant risk to Spain; Catalonia, where its three operating reactors generate 59% of its electricity from nuclear power, would be one of the most affected regions.
“The negative impact of the planned shutdown has been analyzed in terms of energy prices, security of supply, environmental impact and socioeconomics. All of these will have a particularly negative effect on Catalonia,” he explains. “Logically, because a significant portion of the nuclear capacity is located in this region, it is where the effects will be felt the most, although they’ll impact the whole country.”
“Our analyses show that shutting down nuclear will raise electricity prices”
Beyond the case of Catalonia, Barrero points out that shutting down the nuclear fleet, especially if the goals of Spain's National Integrated Energy and Climate Plan are not met, will lead to increased reliance on combined cycle gas plants. “This has an effect on prices that we have quantified. In the future, it could be at least 13 to 14 euros per megawatt-hour—even with a very conservative scenario for gas and CO₂ prices,” he says.
On the environmental side, especially concerning Catalonia, Barrero warns: “Catalonia will face a particularly critical situation in terms of security of supply, due to the large share of nuclear in its electricity system. CO₂ emissions are a global problem, but if we remove 59% of electricity generation that produces no CO₂, Catalonia would become the region with the highest emissions.”
“Energy policy decisions like shutting down nuclear are placing us in a much worse position regarding emissions”
“There are always those who say, ‘But nuclear generates waste.’ Yes, but the waste that would be generated by extending the lifespans of nuclear power plants is minimal compared to what is already there. There is waste already that is being managed, so there’s no added problem in extending the operation of the plants,” says Barrero.
Regarding the socioeconomic impact in nuclear-hosting areas, Barrero highlights that “thousands of families rely directly or indirectly on nuclear plant operations. These jobs offer above-average wages and economic contributions to the region. Many small and medium enterprises (SMEs) also depend heavily on the presence of nuclear facilities.”
“Thousands of families rely on nuclear directly or indirectly. Areas where plants have closed have been economically devastated”
He adds: “The concept of a ‘fair transition’ looks great on paper, but the reality is that areas where nuclear power plants have shut down have become economically devastated, with population decline and loss of services.”
When asked about public perception of nuclear energy, Barrero observes: “The debate has completely shifted because public opinion has changed. We’ve moved from past eras with more opposition to recent polls showing that the majority now favour keeping nuclear plants open.” He also notes, “Political positions on nuclear are increasingly aligned in favour of the technology—not only in Spain, but globally.”
“There’s no sense in shutting down Spain’s nuclear fleet”
Barrero believes that what society is actually debating is whether to shut down plants that are still operating. “No one is yet asking whether we should build new nuclear power plants in Spain—that’s a different question, and the answer might be that we will probably need more. Other countries have already made that decision. Right now, though, the question in Spain is: should we close the ones that are working? It makes no sense. There is no objective basis for the shutdown, and no real scenario where nuclear can be replaced solely by renewables and storage.”
The German mistake
Focusing again on the nuclear shutdown, Barrero remarks: “Everyone is aware that shutting down nuclear power plants carries a serious risk of making a big mistake—just like Germany did. Germany is a clear case of an energy policy error that led to an economic and environmental disaster.” Although Germany expanded renewables, it replaced nuclear with coal, leading to both increased emissions and higher electricity prices.
“Germany is not exactly Spain, but people hear about it and say, ‘let’s not be next in line making the same mistake.’ The problem is that once you go down that road, it’s very hard to turn back. Germany is now facing the challenge of restarting decommissioned reactors. You don’t simply flip a switch. Given that you can restart them at all, the additional cost is significant.”
After an objective analysis with data, Barrero says, “I hope the technical decision-makers will conclude that it’s best to extend plant operations. We’re not in the same circumstances as when the shutdown schedule was approved in 2019. The forecasts from that time are not materializing, so we must reassess whether that timeline can still be followed.”
“Nuclear offers us sovereignty, sustainability, and cost competitiveness”
He continues: “We are in a totally different geopolitical context now. Europe unanimously states that we must ensure our energy sovereignty and keep our industry competitive in a sustainable, emissions-free environment. Nuclear power must be part of this strategy because it provides sovereignty, sustainability, and cost competitiveness. We can’t go completely against the grain and make a negative decision that also carries enormous risk.”
The interview also touched on taxation. Barrero stresses: “Clearly, nuclear has faced disproportionate taxation, which has brought many facilities to the brink of financial viability. If we want them to continue operating and for operators to be willing to extend their lifespans, taxes must be reduced. We’ll need a compromise on lowering this fiscal burden; otherwise, it will not be viable.”
In his view, nuclear is far more heavily penalized than other technologies. He even notes “overlapping or double taxation” in many cases. “All this has created an overwhelming tax burden that is becoming unsustainable and jeopardizes the medium- and long-term viability of nuclear."
“Almost 50% of a nuclear power plant’s costs go to taxes, and that’s unsustainable”
“If we consider that taxes and fees add up to around €28 per megawatt-hour out of a total cost of €65, nearly 50% of a plant’s costs are taxes. Sometimes, energy prices don’t even cover those taxes. No one can decide to keep operating if their costs are €65 and future energy prices are projected at €55. Does that mean nuclear isn’t competitive? No—the issue is the €28 in taxes and fees.”
Oscar Barrero concludes the interview, conducted at PwC's headquarters in Madrid, with this reflection: “In consulting we crunch a lot of numbers, analyze strategies and laws… we’re often detached from the physical reality. But in this particular case, after doing the math and seeing the clear conclusions, I had the chance to visit Almaraz. You realize how real the numbers are when you stand in front of that turbine hall and see that it generates 7% of Spain’s electricity. Or when you visit the waste storage area and realize it’s a small, safe space. You say to yourself, ‘How can we shut this down?’ If every Spaniard had the chance to visit Almaraz, they wouldn’t allow it to be closed.”
