Nuclear power to be central to German energy summit agenda

Berlin (Platts)--17Jan2006

Nuclear power is a key element in the energy strategy of Germany's new
economy minister and will be a central topic at the government's energy summit
in April, minister Michael Glos told the Handelsblatt energy conference in
Berlin Tuesday.
     The future role of nuclear came under the spotlight with the change of
government in the fall of last year, when members of the now leading CDU party
said the "atom consensus" framed by the previous SPD-Green party
coalition--that aims for the withdrawal from nuclear by 2020--should be
reviewed. While Chancellor Angela Merkel said after talks with coalition
partner, the SPD, that she planned to uphold the agreement, members of her
party, including Glos, have expressed their concerns that the omission of
nuclear from Germany's energy mix would spell catastrophe for security of
energy supply. Nuclear power covers a third of Germany's electrity demand.
     Glos told the conference that Merkel's support for the eventual
withdrawal of nuclear power had been expressed before the recent 'crisis' when
Russia cut off gas supplies to Ukraine, which had thrown the dependence of
eastern and western European countries on Russian gas into sharp relief. "The
Russian-Ukrainian gas dispute has also newly opened the discussion over the
necessity of a reliable energy mix," Glos said. "We have to think about the
the role of nuclear. We did not cut the Gordian Knot during the coalition
talks," he added.
     Pointing to the government's aim to raise the share of renewable energy
to 20% by 2020, he expressed doubt whether it was reasonable to rely on an
increase in the share of gas in power generation. Renewables cover 10% of
Germany's energy mix. "If we exit from nuclear, we would have to get the other
80% of out power from the fossil fuels gas, hard coal and lignite. With
respect to the turbulence in gas, I really doubt whether such a development is
sustainable. Some would say that gas as a scarce material is too precious to
be burned for electricity," Glos said.
     In his view, the increasing demand for gas inevitably drove prices up and
there was a price risk despite the potentially positive effects of the planned
incentive-based regulation of networks on grid access tariffs. "A longer usage
of nuclear energy in power generation would possibly relieve our burden. I do
not share the view that uranium may not be available to a sufficient extent
for the operation of nuclear power plants," he said, hinting to the recent
reservations expressed by the environment ministry that nuclear power was
heavily dependent on imports. "Based on the global annual uranium production,
the known reserves will last for at about 50 years. And the security of
uranium supply is very high when compared to gas and oil." Unlike, oil and
gas, uranium is also imported from stable countries, Glos added, such as
Canada, Australia and South Africa.
     In his open position towards nuclear power, Glos said he did not aim to
be controversial. Referring to a recent TV debate, he said, "They have out a
circle of radiation around me as if I was talking about nuclear rearmament,"
he said.

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