Energy companies bet on nuclear power to recoup investments
With Berlin scheduled to unveil a new energy concept, power companies
have been lobbying for the extended use of their nuclear plants, if only
for 10 to 15 more years. They could recoup their investments and then
some.
When the German government unveils its new energy concept
September 28, it will likely announce a plan to prolong the life span of
the country's 17 existing nuclear power plants. Chancellor Angela
Merkel has advocated doing so by another 10 to 15 years, saying that
would make it possible for the country to control electricity prices and
meet goals for greenhouse gas emissions.
But critics say an aggressive nuclear energy lobby has been pushing
for such extended life spans so that power companies can continue to
reap profits from their investments in nuclear reactors. Four companies
operate nuclear power plants in Germany: E.ON, RWE, Vattenfall and EnBW.
Those companies hardly make a secret of their intentions, saying that
extending the life span of Germany's nuclear power plants is good for
the country's economy as a whole.
Returns on investments
 Bildunterschrift: Großansicht des Bildes mit der Bildunterschrift: Nuclear energy has no shortage of opponentsTake
the Muelheim-Kaerlich nuclear reactor RWE built near the city of
Koblenz, for example. After a test period of two years and 100 days of
regular service, it was shut down because it had been built in an
earthquake-prone area. The debacle was one of RWE's biggest blunders and
surely intensified pressure on the company to profit from
already-existing nuclear power plants.
Juergen Grossmann, chairman of the board at RWE, told Deutsche Welle
that electricity would become more expensive if nuclear power plants
were shut off immediately.
"It would get more expensive if nuclear power is turned off, because
it would require many more expensive energy carriers to take over the
portion of nuclear power," he said.
In addition to inexpensive electricity, prolonging the lifespan of
nuclear power plants could create 7,000 construction jobs, as the
environment minister wants all reactors to be fitted with additional
concrete shells to protect against possible airplane crashes.
Independent appraisers believe longer life spans could contribute to
economic growth of 0.6 percent through 2050 and create 100,000 jobs.
Existing nuclear plants profitable
 Bildunterschrift: Großansicht des Bildes mit der Bildunterschrift: Nuclear waste is stored underground near the city of GorlebenHans-Peter
Wodniok, an analyst with the independent research company Fairesearch
in Frankfurt, said nuclear power plants can be extremely profitable once
the initial overhead costs are bridged.
"One has to pay for the necessary fuel elements and other expenses
like personnel and security and so on," Wodniok told Deutsche Welle.
"But one has no further consumption of capital, no further interest to
pay on these nuclear power plants."
"Naturally, a significantly higher profit comes out of the equation,"
he said, adding that higher profits would mean higher tax revenues for
the state in the wake of the financial crisis.
Still a gamble
Nevertheless, companies operating nuclear power plants are still
faced with a gamble. Sinking electricity rates could drop by as much as
0.7 cents per kilowatt hour if the life span of nuclear power plants is
extended by 12 years, and a tax on nuclear fuel would likely be
introduced.
"I don't believe that the electricity providers will ultimately
shoulder these taxes, but that the consumers of electricity will, at
least in the case of private households," Wodniok said.
 Bildunterschrift: Großansicht des Bildes mit der Bildunterschrift: Does Germany really have the renewable energy infrastructure it needs?With
so many uncertain factors in the equation, the ultimate cost-benefit of
extending the life span of nuclear power plants is hard to determine,
according to Steffen Tolzien, an economist with the Commerzbank.
"It can't yet be conclusively answered," he said. "We still have to
see what happens on September 28... It's also so vague. It wouldn't be
serious to point out who the winners and the losers will be now, because
there are many, many more varied interests that still need to be
accounted for."
Author: Michael Braun/gps
Editor: Sam Edmonds
http://www.dw-world.de/dw/article/0,,5965407,00.html
| 
