Merkel’s Election Loss Could Hamper Nuclear Reprieve

[jpak]

http://www.businessweek.com/news/2010-05-10/merkel-s-election-loss-could-hamper-nuclear-reprieve-update1-.html

E.ON AG and RWE AG, Germany’s largest utilities, may not get to run their nuclear plants past scheduled shutdown dates after Chancellor Angela Merkel’s party lost control of parliament’s upper house in a state election.

The pro-nuclear leader of the Christian Democrats, punished by voters yesterday for her reversal on aid for Greece, may lose their hold on power in North Rhine-Westphalia, Germany’s most populous state. The party’s worst result since World War II robs Merkel of a majority in the upper chamber in Berlin, limiting her ability to extend the lifespan of nuclear-power plants.

Germany, the European Union’s largest power user, plans to scrap a decade-old law that would have forced the shutdown of its nuclear reactors by about 2020. Merkel favors extended use of the plants to meet energy demand and cut output of gases blamed for global warming. An extension would bolster earnings for utilities with nuclear stations and forego spending on replacement plants.

“It’s suddenly looking much bleaker for her plans,” said Claudia Kemfert, chief energy analyst at the DIW economic Institute in Berlin. “The big question now is will Germany ramp up coal-fired power generation if the nuclear revival fails?”

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