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Germany to scrap nuclear power by 2022By Gerrit Wiesmann in Berlin

Published: May 30 2011 09:10 | Last updated: May 30 2011 11:19

An an ti-nuclear protest at Neckarwestheim, southern Germany, earlier th is year 

Germany will phas e out the nuclear power plants that produce a quarter of its e lectricity over the next decade, the

ruling coalition decided on Monday in a reaction to the problems at Japan’s Fukushima plant after the March

earthquake and tsunami.

In a high-risk move meant to put Germany at the forefront of the conversion to renewable energy, the government

will switch off eight of its 17 nuclear plants this year and close the other nine by 2022.

Signalling this had to come hand-in-hand with a renewable energy phase-in, Angela Merkel, chancellor, said:“To generate the electricity of the future we need to give our energy system an en tirely new architecture.”

But the government will not abolish a nuclear fuel-rod tax, introduced this year, as the s peedy closure of the first

group of plants should reduce the power generators ’ annual tax bill from €2.3bn ($3.29bn) to €1.3bn, officials

said.

The decision by Angela Merkel’s Chris tian Democrats and their coalition partner the Free Democrats will com e

as a blow to Germany’s “big four” nuclear power companies, RWE, Eon, Vattenfall and EnBW.

It could not only dent earnings this year, but also reduce their capacity to invest in new projects to realise the

government goal of doubling renewable energy to 35 per cent of electricity production over 10 years.

Shares in RWE and Eon fell on the news but shares in alternative energy companies gained.

Ms Merkel, chancellor, shocked the big four power compan ies when she ordered a rethink of her hitherto pro-

nuclear policy in the wake of the Fukushim a meltdown.

She ordered the seven oldest plants off stream for a safety check – an eighth was already down for repairs – and

pledged changes to a nuclear phase out, which she had extended to 2036 from 2022 late last year.

To hasten the building of new generation facilities, transmiss ion lines, and pump storage, Berlin plans to

streamline planning laws – much as public projects were fostered after reunification in the 90s .

To guard agains t power shortages, one or two of the old plants to be closed this year will remain on stand by as

a reserve over the winter, and three of the newest nuclear plants wil l remain on s tandby from 2021 to 2022.

The opposi tion Social Democrats and Greens, whose support Ms Merkel wants to win for Germany’s newly

accelerated nuclear phase out, criticised this las t decision as politically difficult and technically unworkable.

But with Ms Merkel aiming for a formal cabinet decis ion at the s tart of June and final parliam entary approval a

month later, she and the oppos ition have a few weeks to iron out wrinkles in what was agreed overnight.

When in government 10 years ago, Social Democrats and Greens agreed Germany’s first – and highly popular –

nuclear phas e out. Ms Merkel’s prolongation of this original 2022 deadline proved highly divisive last year.

GLOBAL ECONOMY 

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