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The Economy of Municipalities Surrounding Almaraz Depends on the Fate of the Nuclear Power Plant

What lies ahead for the region after the potential closure of the nuclear facility – an inside perspective

Seven out of the ten wealthiest towns in Extremadura rely on the Almaraz nuclear power plant. Local residents fear for the region’s future. Politicians debate the extension of the plant’s operation.

A unique economic situation has developed around the Almaraz nuclear power plant in the province of Cáceres: seven out of the ten municipalities with the highest per capita income in Extremadura are located here. The plant’s two reactors, built in the early 1980s, were scheduled to shut down in 2027 and 2028. But as politicians argue over the future of the facility, locals live in constant uncertainty about what tomorrow will bring.

In the municipalities surrounding the plant, conversations about the future never cease. Residents are open about their concerns: if the nuclear plant closes, the region faces economic collapse. “If the plant shuts down, only retirees will remain here. Everything will come to an end,” says contractor Fernando Muñoz while withdrawing cash in central Almaraz. Teacher Cristina Jiménez is convinced: “It would be a blow to all neighboring towns because the plant provides so many jobs.”

According to the latest figures, the average per capita income in Almaraz is €16,641—significantly above the regional average in Extremadura (€12,326) and even higher than the Spanish national average. The top three also include Romangordo and Belvís de Monroy, whose incomes rival that of the nuclear town. Even compared to the region’s major cities, such as Cáceres, Badajoz, Plasencia, and Mérida, these small towns appear more prosperous.

Dependent on the plant

Economists point out that such a high level of income is due solely to the nuclear power plant, not to an advanced industry or business sector. According to Professor Juan José Maldonado, the region needs to look for alternatives, since sooner or later the plant will shut down. Currently, more than 300 people work at the plant itself, and over 400 more are employed by contracting companies. During maintenance periods, the workforce exceeds one thousand.

The question of extending the nuclear power plant’s operational life has sparked intense political debate. Representatives of conservative parties support postponing the closure until 2030, and the station’s owners—major energy companies—have already submitted the necessary application. The leader of one right-wing party personally visited Almaraz, accusing regional authorities of supporting ‘green fanaticism,’ which he claims is destroying the rural economy. At the same time, the head of the region promised to reduce the environmental tax for the plant, which would lower payments from 80 to 45 million euros by 2029.

The Spanish government has not yet taken a clear position, but in recent months has started considering the possibility of extending the plant’s operation—though without tax breaks. The final decision will depend on the conclusions of the Nuclear Safety Council.

Budget and Infrastructure

For municipalities surrounding the nuclear power plant, revenue from the station is a key source of income. In the budget of Almaraz, nearly half of the funds come from taxes linked to the facility’s operations. This enables the town to maintain an extensive infrastructure: there is a medical center, a nursing home, a kindergarten, a library, a day center, and even its own team providing home care for the elderly. During the summer, the municipal staff grows to 230 people.

In 2023, the city unveiled a monument dedicated to the power plant, with an inscription of gratitude for its contribution to the development and quality of life of local residents. However, despite recognition of the plant’s achievements, many understand it will not last forever. Juan Antonio Díaz, the mayor of Almaraz, emphasizes: “We need real alternatives before the station closes, not just promises.”

New projects and concerns

The region’s main hope is the construction of a gigafactory for electric vehicle lithium batteries in Navalmoral de la Mata, 20 kilometers from the nuclear plant. The project, led by an international company from China, promises to create 3,000 direct jobs and another 12,000 indirectly. Investments exceed 2.5 billion euros. Authorities expect the new factory to become Extremadura’s largest industrial enterprise, leveraging the existing energy infrastructure and the proximity to Madrid.

However, plans to launch production in 2027 are now under threat: the company has reduced the number of production lines, which invalidated the building permit. This has led to delays, and political opponents are now blaming each other for insufficient support for the project.

Life on hold

While politicians argue and investors revisit their plans, residents of local municipalities keep living in anticipation of change. In Saucedilla, €5 million out of the €6.8 million budget comes from the nuclear power plant. The local mayor, Iñaki Campo, admits: “People are afraid of being left without a future.” Even the city’s coat of arms features an image of the nuclear facility.

In Romangordo, pensioner Antonio Pérez recalls that in 40 years of the plant’s operation, there has not been a single major incident. Here, in the village museum, life moves at a measured pace: there is a school, a medical clinic, a retirement home, a swimming pool, a library, and a gym. But many fear that once the nuclear plant is gone, the familiar way of life will disappear too.

Some residents are skeptical about alternative energy sources. Local carpenter Vicente Carro believes solar panels cannot replace the jobs provided by the nuclear plant. “I don’t want to see nothing but fields of glass around here,” he says, discussing the changes with his neighbors.

As the plant owners and authorities debate the future, locals continue to hope for the best, but are preparing for changes that could alter their lives forever.

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