Facing Energy Crisis, Germany Likely to Extend Nuclear Power Plant Lifespan After All

Isar Nuclear Power Plant in Germany [Photo by AP Yonhap News]

[Asia Economy Reporter Park Byung-hee] Facing an energy supply crisis, the German government is expected to postpone its scheduled nuclear phase-out at the end of this year and extend the lifespan of nuclear power plants, the Wall Street Journal (WSJ) reported on the 16th (local time), citing German government officials.

According to officials, the German cabinet is currently awaiting the results of energy demand forecasts and is conducting detailed discussions on extending the lifespan of nuclear power plants. Earlier this year, the German Ministry of Energy and Ministry of Environment conducted a feasibility study on extending nuclear power plant lifespans in relation to the energy crisis. As the energy crisis worsened, recently, Economy Minister Robert Habeck ordered a second feasibility study. A spokesperson for the German Ministry of Energy stated that no decision has been made yet on whether to extend the nuclear power plants’ lifespan, and that the extension depends on the results of energy demand forecasts.

Accordingly, it is expected that the German government’s official announcement on extending nuclear power plant lifespans may take several more weeks. However, some German government officials told WSJ that the extension is considered a foregone conclusion. They emphasized that two important conditions for extending nuclear power plant lifespans?energy supply shortage and the safety of nuclear plants even after extension?have been met.

The reason the German government is considering extending nuclear power plant lifespans is due to growing concerns over power shortages caused by Russia’s reduction in gas supplies.

On the same day, natural gas futures prices at the Dutch TTF exchange surged by up to 10% during the session, reaching 251 euros per megawatt-hour (MWh). Currently, natural gas prices are at a level where paying over $400 per barrel of crude oil would be comparable.

Germany Electricity Price Trends [Image Source= Bloomberg]

Due to the rise in natural gas prices, German electricity prices exceeded 500 euros per MWh for the first time ever. On that day, the price of German electricity for delivery next year at the European Energy Exchange rose by up to 11% during the session, reaching as high as 530.50 euros per MWh. German electricity prices have increased by more than 500% over the past year.

As a result, voices calling for the extension of nuclear power plant lifespans have recently grown louder in German politics. German Chancellor Olaf Scholz officially expressed support for extending nuclear power plant lifespans for the first time last week. Chancellor Scholz said, "It may be reasonable to continue operating three nuclear power plants." The Green Party, which had opposed extending nuclear power plant lifespans, has recently shifted its stance to accept the extension. Ludwig Hartmann, the Green Party parliamentary leader, said, "If Germany faces a power shortage crisis, the lifespan of nuclear power plants can be extended by a few months." The Green Party was originally founded based on the anti-nuclear movement and had opposed extending nuclear power plant lifespans until now.

The opposition Christian Democratic Union (CDU) also supports extending nuclear power plant lifespans. The CDU accelerated the nuclear phase-out schedule after the Fukushima nuclear accident in Japan in 2011 during former Chancellor Angela Merkel’s administration. The plan to shut down the three currently operating nuclear power plants by the end of this year to complete the nuclear phase-out was established during Merkel’s tenure.

Germany’s nuclear phase-out has long enjoyed overwhelming public support, but after Russia’s invasion of Ukraine and the rise in energy prices, public opinion in favor of extending nuclear power plant lifespans has increased. A recent survey by the Forsa Institute showed that nearly three-quarters of respondents support extending nuclear power plant lifespans.

Government officials said that even if the lifespans of the three currently operating nuclear power plants are extended, the extension period will be only a few months. However, within the leadership of the Free Democratic Party, which is part of the German coalition government, there are calls to operate nuclear power plants until 2024.

Even if the government extends nuclear power plant lifespans, it is expected to be limited to the three currently operating plants. Recommissioning already closed nuclear power plants is reportedly not being considered. Germany also shut down three nuclear power plants last winter. The three currently operating nuclear power plants account for about 6% of Germany’s electricity production.

This content was produced with the assistance of AI translation services.