Berlin (Platts)--17Nov2008

Affordable energy, which includes nuclear power, is key for Europe's
success in globalization and in its efforts to manage its carbon reduction
targets, according to top business and political players in Europe's energy
sector.

"Our success in globalization is directly linked to affordable and
reliable energy," said Ana Palacio, board member of French energy company
Areva and former Spanish foreign minister, late Friday during an energy
conference in Berlin.

"It is too early to rely on renewables, neither in Germany nor anywhere
else in Europe," she said.

"I don't see any breakthrough in this field that allows us to do without
fossil fuel or nuclear power," Palacio added.

She considered the German nuclear phase-out law a risk for the entire
European economy. "We cannot afford to leave out any source, therefore we need
a proactive German policy."

The same applied to coal-fired power plants, Palacio said. "Looking at
the ambitious nuclear or coal programs of emerging countries like China,
India, Brazil and South Africa it is clear that they are becoming more and
more serious competitors for the industrialized countries," she said.

Her perspective was shared by other speakers at the event. The secretary
of state for energy at the German economy ministry, Jochen Homann, said that
nuclear power was a way to find the right balance between affordable and
climate-friendly energy.

"We have to face that the time of cheap energy is over--it is expensive
and prices are going to rise even more," he said.

"My ministry is in favor of nuclear power to bridge the time until
renewables can take over completely--otherwise we won't be able to achieve our
climate goals."

In the long run, however, Germany and other countries had to solve the
looming challenges with technological innovations and inventions, Homann
added.

A similar view was taken by the president and CEO of Swedish state-owned
utility Vattenfall.

Lars Josefsson said that his company saw the future in renewables but
until they are ready to supply all the countries without the risk of an energy
gap, nuclear power was the best alternative.

"Nuclear power is the best transition into a future with renewable
energy," he said. "It is safe, good and affordable."

Heinz Hilbrecht, director of the TEN (Trans-European Networks)
Directorate at the European Commission's Directorate-General for Energy and
Transport, told Platts that while EU member states decided individually if
they wanted to use nuclear power or not, "there is going to be nuclear energy
in the EU as long as we and also our children live."

But he also said it was important to further expand renewable energy and
improve energy efficiency, especially in the east European member states of
the EU.

Asked about the right approach for a climate-friendly and affordable
energy supply, Hilbrecht said: "From a long-term energy security viewpoint,
the 20-20-20 strategy is the right direction." This stands for the EU's goal
of a 20% reduction in emissions and a 20% generation share of renewable power
by 2020.

Hilbrecht referred to the new EU Energy Security and Solidarity Action
Plan, saying that the diversification of energy supply in the EU was one of
the most fundamental elements of improving energy security.

He also said that the use of the EU's domestic energy resources was
fundamental to maintain affordable prices.

The former Commissioner for Budget of the European Commission, Michaele
Schreyer, said far more use of renewable energy was possible if it was
approached on a multinational level.

"The security of supply is guaranteed if we approach it on a European and
not on a national level," she said.