germany: November 20, 2008

German energy giants RWE, E.ON and Vattenfall are trying to persuade politicians in Berlin to scrap a planned 15 year phase-out of the country’s existing nuclear power generating stations. The companies are advocating the sale rather than decommissioning of these facilities wherein the profits from the sales would be invested in clean energy research or be used to ease the burden of rising energy costs on German households.

Since most of Germany’s nuclear plants have already been fully depreciated, the production of electricity for these facilities is relatively cheap in comparison to alternative generation methods (i.e., fossil fuels, natural gas, etc.). It is estimated that if these existing nuclear plants could have their life spans extended another 25 years, it would represent approximately €3,000 for every German citizen.

The energy companies hope that the promise of its lower cost energy combined with its even lower carbon emissions will convince both the politicians in Berlin and the general public at large that nuclear power is a wise option in today’s energy purchasing environment.

While the arguments in extending the life of German nuclear plants may be wise, it is unlikely the current ruling coalition will undo the phase out of such facilities. Currently, it appears the only hope in extending the country’s nuclear industry is if a more accepting government comes to power after the general elections scheduled for September 2009.

The use of nuclear power remains a controversial subject not only here in Germany, but across the entire EU. However, as we attempt to balance increasing electricity production with the need for a cleaner environment, we may find an older, out of favor, technology may be our best option.