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Thursday July 2, 08:43 PM
UPDATE 4-Spain old nuclear plant to run 4 more years -govt

By Martin Roberts MADRID, July 2 (Reuters) - Spain said on Thursday its oldest nuclear power station could stay open for another four years in the Socialist government's first test of its electoral pledge to phase out nuclear energy.

'The government's decision is to allow the nuclear power station to run for another four years until 2013, when activities will cease,' Industry Minister Miguel Sebastian told journalists.

The extension to the 500 megawatt Garona plant's operating permit will allow it to run past the 40-year life span it was originally designed for, which expires in 2011. It also means no further decision need be made on the plant's future until after national elections are next due in 2012.

As he weighed the decision, Socialist Prime Minister Jose Luis Rodriguez Zapatero will have considered both the wishes of the significant group of left-leaning voters opposed to nuclear energy, and also those of unions who feared the loss of more than 300 jobs if Garona closed.

The nuclear regulator said last month in a nonbinding report that Garona was safe to operate for another 10 years.

But Zapatero said earlier in the day Garona produced 50 percent more high-level waste than other Spanish plants.

'It is an old plant, designed with decades-old technology and we have to very much bear that in mind when thinking of our country's future,' Zapatero told state radio.

The move will please neither the operators of the plant -- jointly owned by Iberdrola (Madrid: IBE.MC - news) and Endesa (ENDESA.SN - news) -- who had asked for a 10-year renewal, nor environmentalists, who had called for its immediate closure.

The Socialists vowed in elections last year to gradually replace nuclear power with renewable energy sources, which are booming in the country, but did not say when.

Sebastian added Spain's seven other remaining nuclear plants would be allowed to operate until they turn 40, which will not be until at least 2020.

National grid (LSE: NG.L - news) operator REE (Madrid: REE.MC - news) told Reuters that closing Garona, which provides 1.4 percent of Spain's electricity, would pose no supply problems. But REE added Spain was not yet ready to close all of its nuclear plants, which meet 20 percent of demand.

Greenpeace charged Zapatero with failing to keep election promises and bowing to pressure from nuclear power producers.

'With this deplorable decision, the government has also decided to continue exposing the population and the environment to the risk of a nuclear accident at this dangerous installation,' it said in a statement.

Jose Ramon Torralbo, manager of the Garona plant, said operating company Nuclenor would fight the decision in the courts.

'Faced with this situation, Nuclenor will take such legal action as concerns the defence of all the affected parties' legitimate rights and interests (against) an arbitrary decision that is not justified,' he told reporters.

Garona's operators but have said they have invested 151 million euros ($213.1 million) in modernisation in the past decade and similar plants have received permission to run for 60 years in the United States.

Spain has become the world's third-biggest generator of wind power and the second of solar after it launched a drive to cut greenhouse gas emissions and hefty dependence on imported fuel.

($1=.7087 Euro)

For more facts on Garona, please click on

For facts on Spain's nuclear plants

For scheduled lifespans of Spain's plants

(Editing by Christian Wiessner)

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