Released October 25, 2016 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Germany has hammered out a controversial deal with four major power companies that have agreed to pay 23.6 billion euro ($26 billion) into a fund that will deal with the country's nuclear waste.
The deal comes five years after the government pulled a surprise U-turn on nuclear power, following the Fukushima Daiichi nuclear accident in Japan. Just months after that event, the government announced that it was going to exit the nuclear power sector and shut all 17 reactors over the coming decade. For additional information, see May 30, 2011, article--Germany Votes to Dump Nuclear Power.
The deal was confirmed by the KFK (Kommission zur Uberprufung des Kernenergieausstiegs) commission advising the government. Industrial Info covered the first news of the deal in May. For additional information, see May 6, 2016, article-German Utilities Face Nuclear Clean-Up Bill of $26 Billion.
The utilities, which include Energie Baden-Württemberg AG (EnBW) (FWB:EBK) (Karlsruhe, Germany), RWE AG (FWB:RWE) (Essen, Germany), E.ON SE (FWB:EOAN) (Düsseldorf) and Sweden's Vattenfall AB (Stockholm), originally rejected the sum, claiming it was too high and that the inclusion of a 35% "risk premium" was unfair. However, the companies have now accepted the deal. They are also responsible for the costs associated with shutting down and dismantling the remaining plants and preparing the waste for storage. In return, the government accepts the responsibility of overseeing the feasibility and steps needed for storing nuclear waste.
Most of the country's nuclear waste is stored in interim facilities at nuclear plants or reprocessed abroad. The country's various political parties have agreed that Germany needs its own permanent storage facility, but this may not happen by the suggested date of 2050. A two-year investigation by leading scientists and industry leaders concluded that a permanent facility might not be possible until the next century.
"Financing for shutdown, dismantling and waste management will be guaranteed for the long term without transferring the costs to society or endangering the economic situation of the operators," said German Energy Minister Sigmar Gabriel.
The utilities have suffered billions of euro in financial losses due to the plant closures, along with having to pay a punitive nuclear tax to the government. They have launched separate legal actions against the government in recent years to fight against the closures and demand reparations.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
The deal comes five years after the government pulled a surprise U-turn on nuclear power, following the Fukushima Daiichi nuclear accident in Japan. Just months after that event, the government announced that it was going to exit the nuclear power sector and shut all 17 reactors over the coming decade. For additional information, see May 30, 2011, article--Germany Votes to Dump Nuclear Power.
The deal was confirmed by the KFK (Kommission zur Uberprufung des Kernenergieausstiegs) commission advising the government. Industrial Info covered the first news of the deal in May. For additional information, see May 6, 2016, article-German Utilities Face Nuclear Clean-Up Bill of $26 Billion.
The utilities, which include Energie Baden-Württemberg AG (EnBW) (FWB:EBK) (Karlsruhe, Germany), RWE AG (FWB:RWE) (Essen, Germany), E.ON SE (FWB:EOAN) (Düsseldorf) and Sweden's Vattenfall AB (Stockholm), originally rejected the sum, claiming it was too high and that the inclusion of a 35% "risk premium" was unfair. However, the companies have now accepted the deal. They are also responsible for the costs associated with shutting down and dismantling the remaining plants and preparing the waste for storage. In return, the government accepts the responsibility of overseeing the feasibility and steps needed for storing nuclear waste.
Most of the country's nuclear waste is stored in interim facilities at nuclear plants or reprocessed abroad. The country's various political parties have agreed that Germany needs its own permanent storage facility, but this may not happen by the suggested date of 2050. A two-year investigation by leading scientists and industry leaders concluded that a permanent facility might not be possible until the next century.
"Financing for shutdown, dismantling and waste management will be guaranteed for the long term without transferring the costs to society or endangering the economic situation of the operators," said German Energy Minister Sigmar Gabriel.
The utilities have suffered billions of euro in financial losses due to the plant closures, along with having to pay a punitive nuclear tax to the government. They have launched separate legal actions against the government in recent years to fight against the closures and demand reparations.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
