Germany's Plan to extend the life of nuclear plants

REUTERS

German economy and Environment ministers have drafted a draft document to extend the lives of three remaining nuclear power plants in this state until April 15th, 2023.

German Chancellor Olaf Scholz has ordered the ministers to work on the legal framework to maintain operational power plants.

Europe's largest economy was scheduled to close power plants by the end of this year, but Schelz is now pushing ahead to extend the deadline, following the energy crisis that has sparked Russia's war in Ukraine.

What is before the government?

After changes to the Atomic Energy Act, which envisions extending the life of the plants, the draft law must pass through the cabinet, and all three coalition parties must agree with it.

This document must then be approved in both chambers of Parliament by the end of November.

Why has this been the topic of compromis for parties in the coalition?

The liberal party, The FDP has called for keeping the three power plants active until 2024, while the Green Party has insisted that only two power plants be kept in reserve until spring next year.

Scholz decision considered compromise amid demands of both parties, though The FDP, unlike the Green Party, considers the government's decision to be political victory.

What does this mean for companies?

The companies that manage these nuclear plants are: E. OnN (Isar 2), RWE (Emsland) and EnBW (Neckarwestheim 2).

With a capacity of 4.2 ggavats, these plants constitute 6 percent of Germany's electricity, and by law, they must be shut down at the end of 2022.

The decision to close them was made after the 2011 nuclear disaster in Fukushima.

Each extension requires a change of law.

E. The UN has said there are enough staff to keep the plant at work, because some workers have agreed to postpone early retirement schemes so that they can provide assistance.

Financial costs could amount to 772m euros.

Emsland and Neckarwesthem 2 are expected to produce 1.7 tarvats per hour, according to the draft document.

Senior analyst for the Bernstein company, Deepa Venkateswaran, has said the additional benefit for E companies. The ON and RWE could be <x0-marginal” about 300m euros per lC, considering a 180-euro ceiling price per hour megave.

How long can the power plants work on the remaining nuclear fuel?

Power operators are taking steps to ensure that the plants can operate until 15 April, as Scholz has requested, adding that something like that requires legal changes.

EnBW said that Neckarwestheim 2, in principle, could function by mid-April.

Isar 2 is expected to operate by March 2023, based on its reserves, citing that an eventual configuration could extend the life of the plant until August 2023.

“After this time there must be new batteries that should be generated”, E said. On.

However, this takes time.

According to the industrial group, Germany's Nuclear Technology (KrnD), usually takes a year to secure new nuclear batteries.

If operators have already ordered some batteries, time could be reduced to 6-7 months, KernD said.

Can Germany extend the life of the plants beyond April 2023?

Politically, extending the life of a nuclear power plant represents red lines for the Green Party, which has dismissed the possibility of buying new batteries for extension of power operations.

But if the situation becomes difficult in the winter months, The FDP will be able to seize the opportunity to seek further extension.