London (Platts)--14Jul2008

Germany's conservative senior ruling coalition party CDU/CSU plans to
extend the lifespan of modern nuclear power plants but it does not intend to
build new reactors, the party's general secretary Ronald Pofalla said Monday
during a phone conference in Berlin.

Germany's previous government under a social democrats (SPD) and Green
Party coalition passed a nuclear phase-out law in 2002, forbidding the
construction of new nuclear plants and limiting existing ones to an average
lifespan of 32 years, based on remaining allocated capacity. Germany has 17
nuclear reactors remaining in service.

Pofalla said that the CDU/CSU wanted to extend the lifespan for safe
nuclear power plants as Germany "needs affordable and safe energy."
But Pofalla also said that nuclear new-builds were not part of the
party's program.

The general secretary said company profits made under an extended life
program for nuclear reactors should be used to reduce electricity prices and
for research into new energy technology and Pofalla added that "significant
parts of the energy industry support this idea."

The German head of government Chancellor Angela Merkel (CDU/CSU) said in
an interview this weekend that she would "work to ensure that the operation of
our safe nuclear power plants is extended." She added that Germany would not
be able to "ensure supply for the foreseeable future in a way that protects
the climate without atomic energy," she told Sunday newspaper Bild am Sonntag
So far, the Chancellor had publicly supported the nuclear phase-out
program as it part of the coalition agreement with the Social Democrats of the
SPD.

Merkel had repeatedly said that during the current term there would be no
alteration of the nuclear phase-out law.
In the interview, Merkel said the nuclear power issue would have to be
addressed "at the latest" after 2009's elections.

The CDU/CSU is hoping to leave a coalition with the SPD after 2009's
scheduled general election in order to form a government with the pro-nuclear
liberals of the FDP. The SPD intends to go into government with the Green
Party, together with whom the nuclear phase-out law was passed.

According to the most recent polls, the majority--although shrinking--of
Germans still oppose nuclear new builds although a majority is now in favor of
extending the life of more modern existing nuclear power plants.
The polls indicated that the shift in opinion was attributable to rising
energy prices and worries over security of supply and climate change.
--Henning Gloystein, henning_gloystein@platts.com