Energy Minister Alvaro Nadal said Tuesday the license for the Santa Maria de Garona power plant in northern Spain would not be renewed as there was too much uncertainty surrounding the plant's viability.
Production at the 46-year-old Garona was halted in 2012 when its operator, Nuclenor, objected to a new tax. Its board recently failed to reach agreement on keeping the plant open.
Environmentalists have long claimed that the plant is outdated, although Spain's Nuclear Security Council this year said it could continue operating.
Spain has seven other nuclear reactors that produce some 20 percent of the country's electricity.