ANALYSIS: Ground rules set out in Germany's long-term energy plan

ANALYSIS: Ground rules set out in Germany's long-term energy plan

Cologne (Platts)--4Apr2006

After months of political discussions, papers and statements on the many
aspects of Germany's current and future energy supply, last night's energy
summit with Chancellor Angela Merkel, federal ministers, the big utilities and
manufacturers as well as consumer representatives could hardly live up to
expectations.
There was no dramatic change of course on nuclear or renewables, nor was
there any official statement on rules for CO2 trading, either for Phase Two or
beyond 2012. On the contrary, a lot more talking is to come. "The future of
our country depends on an economic, secure and environmentally friendly energy
supply," said Merkel, heralding an "energy policy framework concept" for
mid-2007 which will set the course to 2020. The aim will be "to reduce
dependency on imports, prevent a further price increase and keep an eye on
environmental-political challenges."
Nuclear power was touched on. In developing a sustainable energy concept
including the nuclear phase-out law, "the question of how nuclear power can be
replaced must be answered," said Merkel. "The details of nuclear closures will
be discussed, probably with much controversy."
Until now Merkel, of the conservative CDU party, has held to the letter
of the post-election coalition government agreement. Because of a lack of
agreement with coalition partner the Social Democrats, the agreement
ring-fences the nuclear phase-out law from debate during this legislature
period. Economics minister Michael Glos, of the CDU's Bavarian sister party
CSU, stressed that the coalition agreement runs only until 2009, while the
future energy concept is to run until 2020, so the nuclear phase-out "has to
be discussed."
Glos, a nuclear proponent, and federal environment minister Sigmar
Gabriel, a nuclear opponent who champions renewables, found common ground by
underlining the importance of containing energy costs. But this summit was
just the first in a number of such meetings. The next will take place in
September, when the picture should become a little clearer.

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