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-Short Attention Span Theater- | ||
German Nuclear Energy Bombshell | ||
2015-04-17 | ||
Unintended consequences of trying to abandon existing nuclear power plants as a knee jerk to Fukushima disaster. There is no alternative to thinking through an issue, and determining the consequences of an action scenario. Germany's decision to pull out of nuclear energy generation by 2022 following the Fukushima disaster has hit the buffers, after it emerged that investors are unwilling to finance its replacement gas power stations because of the fall in global energy prices. The Fukushima Daiichi nuclear disaster occurred in March 2011, triggered by a tsunami created by the magnitude 9.0 Tohoku Pacific coast earthquake, which resulted in a nuclear meltdown of three of the plant's six nuclear reactors. In the aftermath, Germany announced that it would accelerate plans to close its nuclear power reactors and decided to phase the rest out by 2022. However, with the global downturn in energy prices, few investors are interested in financing the new-build projects that would take the place of the country's energy generation capability. Willingness to invest decreased rapidly after investors discovered that even the most modern gas-fired power plants cannot be operated profitably.
"No Incentive to Invest" According to the newspaper Deutsche Mittelstands Nachrichten, 50 existing power plants are due to be decommissioned later this year, yet around half of the planned new plants now lack a concrete investment commitment, according to the General Manager of the lobby group BDEW. Hildegard Muller said a total of 74 power plants are currently planned with a total capacity of 33,000 megawatts. Many are either approved or under construction. However, 39 projects remain unfinanced. The German Federal Network Agency is processing requests to close 50 power plants - not including nuclear facilities - because of a lack of profitability. Yet there is little sentiment to build new, greener plants because financiers fear they will not get an acceptable return on investment. Ironically, the expansion of green electricity and overcapacity in power plants has caused wholesale electricity prices to fall to their lowest level in years. The German government is lacking in enthusiasm to build replacement gas and coal power plants.
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Posted by:Alaska Paul |
#2 Unless Germany has some undeveloped oil shale fields this will not end well for anyone but Russia. |
Posted by: tipover 2015-04-17 21:46 |
#1 That sound you're hearing is Germany's BFF + strategic partner Putinist Russia celebrating the good news for Russia's own energy industry, + also yet another delay in Germany's return to "great power" world status. |
Posted by: JosephMendiola 2015-04-17 21:40 |