Germany Throws 14-year Lifeline to Nuclear Power Plants

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Germany's coalition government has decided to extend the lives of older nuclear power plants by up to 14 years.

The decision, which still must pass through Germany's parliament, the Bundestag, effectively postpones the closure of 17 nuclear power reactors in the country that had been slated to close between now and 2021. The stock price of the energy companies that own the plants, including E.ON AG (OTC:EONGY) (Dusseldorf, Germany) and RWE AG (OTC:RWEOY) (Essen, Germany), rose noticeably after the news. Nuclear power currently accounts for approximately 23% of power generation in Germany.

Seven of the oldest reactors that were constructed before 1980 will be allowed to operate for an additional eight years, while 10 newer reactors will be allowed to operate for another 14 years. The decision marks a significant U-turn for Germany, where the existing law calls for all nuclear power generation to cease by 2021. Germany's anti-nuclear stance came in the aftermath of the Chernobyl nuclear accident in 1986, and the law to exit the nuclear power market was brought in by the previous government in 2002.

In return for the extensions, nuclear operators E.ON, RWE, Energie Baden-Württemberg AG (EnBW) (Karlsruhe, Germany) and Vattenfall Europe Windkraft GmbH (Hamburg, Germany) will pay billions of euros every year between 2011 and 2016. In recent weeks, the energy industry and the German government have locked horns over the controversial fuel-rod tax, but it now seems that the industry has agreed to pay what could amount to 30 billion euros ($38 billion) over the next six years. For additional information, see related news item from August 24, 2010 - German Government Defends Nuclear Tax.

The nuclear companies will pay the annual 2.3 billion-euro ($2.9 billion) fuel-rod tax until 2016. On top of this, they will be expected to pay 300 million euros ($381 million) each for two years, followed by 200 million euros ($254 million) a year until 2016 for the government to use on renewable energy projects. A final decision is expected at the end of this month, when the German government will reveal its long-awaited energy plan.

Environment Minister Norbert Rottgen touted the deal as a way to guarantee a renewable energy future. "The roadmap into the era of renewable energy has been established," he said.

Renewable energy groups and local power utilities in Germany have been less happy with the decision.

Dietmar Schuetz, the president of Germany's renewable energy agency Bundesverband Erneuerbare Energie e.V. (BEE), said: "The nuclear lobby has successfully put through its bold demands. This means that the government's energy concept becomes a farce."

The plants that are up for eight-year extensions are:

• The Biblis A plant (1,225 megawatts), completed Feb. 1975 and operated by RWE
• Neckarwestheim 1 (840 MW), completed Dec. 1976 and operated by EnBW
• Biblis B (1,300 MW), completed Jan. 1977, operated by RWE
• Brunsbuettel (806 MW), completed Feb. 1977, operated by Vattenfall/E.ON
• Isar 1 (912 MW), completed Mar. 1979, operated by E.ON
• Unterweser (1,410 MW), completed Sept. 1979, operated by E.ON
• Philippsburg 1 (926 MW), completed Mar. 1980, operated by EnBW

The plants up for 14-year extensions are:

Grafenrheinfeld (1,345 MW), completed June 1982, operated by E.ON

• Kruemmel (1,402 MW), completed Mar. 1984, operated by Vattenfall/E.ON
• Gundremmingen B (1,344 MW), completed July 1984, operated by RWE/E.ON
• Gundremmingen C (1,344 MW), completed Jan. 1985, operated by RWE/E.ON
• Grohnde (1,430 MW), completed Feb. 1985, operated by E.ON
• Philippsburg 2 (1,458 MW), completed Apr. 1985, operated by EnBW
• Brokdorf (1,480 MW), completed Dec. 1986, operated by E.ON/Vattenfall
• Isar 2 (1,400 MW), completed Apr. 1988, operated by E.ON
• Emsland/Lingen (1,400 MW), completed June 1988, operated by RWE/E.ON
• Neckarwestheim 2 (1,400 MW), completed Apr. 1989, operated by EnBW

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