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Released on Thursday, May 12, 2011

Power

Germany May Ditch Nuclear Power Within 10 Years

A report commissioned by Germany's chancellor, Angela Merkel, has advised that the country should phase out nuclear power completely within the next 10 years.

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) --A report commissioned by Germany's Chancellor Angela Merkel has advised that the country should phase out nuclear power completely within the next 10 years.

A leaked draft of the 28-page report also recommends that the country's seven oldest nuclear reactors be shut down permanently. Merkel ordered the seven reactors shut down temporarily for three months in March after the Japanese nuclear disaster at the Fukushima Daiichi plant. For additional information, see March 18, 2011, article - Germany to Shut Down Oldest Nuclear Power Stations. The report suggests keeping them closed permanently, claiming that the temporary closure of the reactors has proved that the 8,500 megawatts (MW) of power they supply can be covered by other sources.

Last month, German energy company Energie Baden-Württemberg AG (ETR:EBK) (EnBW), one of Germany's four main nuclear operators, admitted that reopening its GKN 1 nuclear power plant was unlikely, thanks to a combination of the government's nuclear tax and additional safety costs.

The report was compiled by the Ethics Commission on Safe Energy Supply, created by Merkel in the wake of Fukushima, and headed up by former chief of the United Nations Environment Programme and the head of the German Research Foundation.

With regard to the other 10 operating nuclear stations, the report stated: "Stations, which according to safety standards are regarded as 'safe,' should be closed down as soon as possible, in order of their remaining risk and their significance to the electricity network." A 10-year phase out--or sooner--is recommended, with the commission claiming an increase in other power sources, ranging from renewables to coal and gas-fired plants, will be capable of covering the loss in nuclear capacity. Nuclear power accounts for 22.6% of Germany's electricity generation.

Germany's government had just managed to reverse anti-nuclear legislation at the end of last year, which would have seen all of its nuclear plants shut by 2023. In November, it pushed through parliamentary changes to allow the oldest of Germany's 17 reactors to extend their lifespan by up to 14 years in exchange for the energy companies paying billions of euros in a nuclear tax. For additional information, see November 2, 2010, article - German Parliament Backs Extending Lives of Nuclear Power Plants.

However, events in Japan have thrown those plans into disarray and with anti-nuclear sentiment rising, Germany's government has backtracked and is now looking to exit the nuclear power sector much more quickly.

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.
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