German PM Biding Her Time on Nuclear Energy Phaseout Question

Germany's big four power companies including E.ON AG and RWE AG will be forced to improve the efficiency of their power plants under government plans to slash greenhouse gas emissions.

Chancellor Angela Merkel, after talks in Berlin today with utility chief executives, said that she expects power plant productivity to be raised 3 percent each year from 2010, adding that progress would be monitored. With new energy-saving projects, the steps are vital to reducing national emissions by up to 40 percent by 2020, she said.

``It's clear that we have no choice but to act'' to combat global warming, Merkel told reporters in Berlin after the government's third energy summit. ``There is some doubt about whether our goals can be reached,'' she said, though the proposals are ``a reasonable path'' to achieving German targets.

Merkel's decision to spearhead carbon dioxide reduction in the European Union adds pressure on the government to fulfill ambitious targets. The proposals discussed today ranged from light-bulb usage to ``capturing'' CO2 in underground caverns. One scenario examined involved extending the future of nuclear power beyond a planned closure date, though Merkel ruled out any change in nuclear policy before the next election, due in 2009.

Of course, attempting to change course on nuclear energy now would rend her coalition government in two. Then again, if she waits until after the next election, and wins an absolute majority in the Bundestag, that problem will take care of itself.

Comments

Activists' Claims Distort Facts about Advanced Reactor Design

Below is from our rapid response team . Yesterday, regional anti-nuclear organizations asked federal nuclear energy regulators to launch an investigation into what it claims are “newly identified flaws” in Westinghouse’s advanced reactor design, the AP1000. During a teleconference releasing a report on the subject, participants urged the Nuclear Regulatory Commission to suspend license reviews of proposed AP1000 reactors. In its news release, even the groups making these allegations provide conflicting information on its findings. In one instance, the groups cite “dozens of corrosion holes” at reactor vessels and in another says that eight holes have been documented. In all cases, there is another containment mechanism that would provide a barrier to radiation release. Below, we examine why these claims are unwarranted and why the AP1000 design certification process should continue as designated by the NRC. Myth: In the AP1000 reactor design, the gap between the shield bu...

Fluor Invests in NuScale

You know, it’s kind of sad that no one is willing to invest in nuclear energy anymore. Wait, what? NuScale Power celebrated the news of its company-saving $30 million investment from Fluor Corp. Thursday morning with a press conference in Washington, D.C. Fluor is a design, engineering and construction company involved with some 20 plants in the 70s and 80s, but it has not held interest in a nuclear energy company until now. Fluor, which has deep roots in the nuclear industry, is betting big on small-scale nuclear energy with its NuScale investment. "It's become a serious contender in the last decade or so," John Hopkins, [Fluor’s group president in charge of new ventures], said. And that brings us to NuScale, which had run into some dark days – maybe not as dark as, say, Solyndra, but dire enough : Earlier this year, the Securities Exchange Commission filed an action against NuScale's lead investor, The Michael Kenwood Group. The firm "misap...

Nuclear Utility Moves Up in Credit Ratings, Bank is "Comfortable with Nuclear Strategy"

Some positive signs that nuclear utilities can continue to receive positive ratings even while they finance new nuclear plants for the first time in decades: Wells Fargo upgrades SCANA to Outperform from Market Perform Wells analyst says, "YTD, SCG shares have underperformed the Regulated Electrics (total return +2% vs. +9%). Shares trade at 11.3X our 10E EPS, a modest discount to the peer group median of 11.8X. We view the valuation as attractive given a comparatively constructive regulatory environment and potential for above-average long-term EPS growth prospects ... Comfortable with Nuclear Strategy. SCG plans to participate in the development of two regulated nuclear units at a cost of $6.3B, raising legitimate concerns regarding financing and construction. We have carefully considered the risks and are comfortable with SCG’s strategy based on a highly constructive political & regulatory environment, manageable financing needs stretched out over 10 years, strong partners...

NEI Nuclear Notes

Search This Blog