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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) -- Germany's government has officially endorsed plans to exit nuclear power by 2022, starting with the permanent closure of eight older nuclear power plants (NPPs).
Last week, Chancellor Angela Merkel, signalled her support for an exit from nuclear power but, after marathon meetings over the weekend, the coalition government, comprising the Christian Democratic Union, the Christian Social Union and the Free Democrats, thrashed out the details of its exit strategy. For additional information, see May 23, 2011, article -Germany Will Not Rush Nuclear Shutdown.
In addition to closing older plants, the government has decided to keep its nuclear fuel-rod tax, with which it aimed to raise 2.3 billion ($2.9 billion) per year between 2011 and 2016. The four nuclear operators were also expected to contribute 300 million ($381 million) each for two years, followed by 200 million ($254 million) a year until 2016, for the government to fund renewable energy projects. The share price of both E.ON AG (OTC:EONGY) (Dusseldorf, Germany) and RWE AG (OTC:RWEOY) (Essen, Germany), were hit noticeably by today's news and neither company has ruled out taking the government to court over its nuclear exit plan.
The first casualties of the process will be the seven oldest nuclear plants shut down temporarily in March after the Japanese earthquake and tsunami set off a chain of disasters at the Fukushima Daiichi nuclear power plant. The seven plants, which had been shut for additional safety checks for a three-month period, will not now reopen. They are Biblis-A, Biblis-B, Isar 1, Unterweser, Brunsbuettel, Neckarwestheim 1, and Phillipsburg 1. In addition, the Kruemmel nuclear power plant, which is owned by Swedish energy giant Vattenfall AB (Stockholm, Sweden) and has been offline following an accident in 2009, will also remain closed. For additional information, see March 28, 2011, article - German Nuclear Plants Begin Shutdowns.
The only exception to the closure of all of the 17 nuclear reactors before the 2022 deadline will be if Germany fails to transition to enough renewable energy in the timeframe. If not, there is an option to allow three of the plants to operate for one extra year to bridge the gap. Nuclear power traditionally supplies around 22% of the country's electricity, with 17% coming from renewables. The closure of the eight plants, however, will reduce that contribution to around 16%.
"The seven oldest reactors that have been placed under a moratorium and the Kruemmel nuclear power plant won't go back online," said Environment Minister, Norbert Roettgen. "A second group of six nuclear power plants will go offline at the end of 2021 at the latest and the three most modern power plants will go offline 2022 at the latest."
The German plan follows on from last week's decision by the Swiss government to ditch nuclear power completely by 2034. This will result in the closure of four nuclear plants that supply just under 40% of the country's power. For additional information, see May 27, 2011, article -Switzerland Calls Time on Nuclear Power.
Last year, the future for nuclear power in Germany was looking decidedly different, when the government overturned the decision of a previous administration to phase out nuclear power. Instead, it opted to allow life extensions ranging from eight to 14 years to Germany's nuclear fleet, in return for the billions of euros it would raise with its nuclear fuel-rod tax. For additional information, see November 2, 2010, article - German Parliament Backs Extending Lives of Nuclear Power Plants.
View Plant Profile - 1072259 1077978 1077658 1078008 1078033 1077975 1077680
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Last week, Chancellor Angela Merkel, signalled her support for an exit from nuclear power but, after marathon meetings over the weekend, the coalition government, comprising the Christian Democratic Union, the Christian Social Union and the Free Democrats, thrashed out the details of its exit strategy. For additional information, see May 23, 2011, article -Germany Will Not Rush Nuclear Shutdown.
In addition to closing older plants, the government has decided to keep its nuclear fuel-rod tax, with which it aimed to raise 2.3 billion ($2.9 billion) per year between 2011 and 2016. The four nuclear operators were also expected to contribute 300 million ($381 million) each for two years, followed by 200 million ($254 million) a year until 2016, for the government to fund renewable energy projects. The share price of both E.ON AG (OTC:EONGY) (Dusseldorf, Germany) and RWE AG (OTC:RWEOY) (Essen, Germany), were hit noticeably by today's news and neither company has ruled out taking the government to court over its nuclear exit plan.
The first casualties of the process will be the seven oldest nuclear plants shut down temporarily in March after the Japanese earthquake and tsunami set off a chain of disasters at the Fukushima Daiichi nuclear power plant. The seven plants, which had been shut for additional safety checks for a three-month period, will not now reopen. They are Biblis-A, Biblis-B, Isar 1, Unterweser, Brunsbuettel, Neckarwestheim 1, and Phillipsburg 1. In addition, the Kruemmel nuclear power plant, which is owned by Swedish energy giant Vattenfall AB (Stockholm, Sweden) and has been offline following an accident in 2009, will also remain closed. For additional information, see March 28, 2011, article - German Nuclear Plants Begin Shutdowns.
The only exception to the closure of all of the 17 nuclear reactors before the 2022 deadline will be if Germany fails to transition to enough renewable energy in the timeframe. If not, there is an option to allow three of the plants to operate for one extra year to bridge the gap. Nuclear power traditionally supplies around 22% of the country's electricity, with 17% coming from renewables. The closure of the eight plants, however, will reduce that contribution to around 16%.
"The seven oldest reactors that have been placed under a moratorium and the Kruemmel nuclear power plant won't go back online," said Environment Minister, Norbert Roettgen. "A second group of six nuclear power plants will go offline at the end of 2021 at the latest and the three most modern power plants will go offline 2022 at the latest."
The German plan follows on from last week's decision by the Swiss government to ditch nuclear power completely by 2034. This will result in the closure of four nuclear plants that supply just under 40% of the country's power. For additional information, see May 27, 2011, article -Switzerland Calls Time on Nuclear Power.
Last year, the future for nuclear power in Germany was looking decidedly different, when the government overturned the decision of a previous administration to phase out nuclear power. Instead, it opted to allow life extensions ranging from eight to 14 years to Germany's nuclear fleet, in return for the billions of euros it would raise with its nuclear fuel-rod tax. For additional information, see November 2, 2010, article - German Parliament Backs Extending Lives of Nuclear Power Plants.
View Plant Profile - 1072259 1077978 1077658 1078008 1078033 1077975 1077680
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
