June 30, 2011 / 12:35 PM / in 8 years

German lawmakers back nuclear power exit by 2022

BERLIN (Reuters) - Germany’s lower house of parliament overwhelmingly approved an exit from nuclear energy by 2022, setting the seal on a policy U-turn by Chancellor Angela Merkel driven by Japan’s Fukushima disaster.

Members of the lower house of parliament Bundestag cast their votes in a ballot box during a debate in Berlin, June 30, 2011. REUTERS/Fabrizio Bensch

Opposition deputies from the centre-left Social Democrats (SPD) and Green Party joined lawmakers in Merkel’s centre-right coalition in supporting the key measure in an energy reform bill in its third and final reading.

Calling it Merkel’s “Waterloo”, the SPD and Greens said before the vote that the nuclear phase-out vindicated their opposition to nuclear power in Germany.

But German industry and the country’s neighbours fear the chancellor’s change of heart on nuclear plants — late last year she called them safe and advocated keeping them open longer — could raise energy costs and imperil the power supply in Europe’s biggest economy.

The upper house (Bundesrat) debate on the package on July 8 will be a formality as the chamber representing Germany’s states could block the package only with a two-thirds majority — not likely in a house where Merkel is only marginally outnumbered.

The government, struggling to hit tough mid-term targets for reducing greenhouse gases, faces accusations from the renewable energy lobby that it has missed a chance to promote growth of wind and solar power more aggressively.

European Energy Commissioner Guenther Oettinger, speaking to a conference in Berlin as the Bundestag (lower house) debated the package of power laws nearby, said Germany’s neighbours were worried about its programme of nuclear shutdowns by 2022.

He said closing the oldest eight of Germany’s 17 nuclear plants after an earthquake and tsunami crippled Japan’s Fukushima plant in March had already reduced the total European power supply by 2-3 percent, “which was manageable; the headlines were bigger than the cut”.

But he urged Berlin to coordinate the nuclear exit with its European Union partners to ensure stable power supplies and stop costs from rising.

RENEWABLES

Merkel, a conservative with one eye on her coalition’s declining popularity and growing support for the Greens, has dismissed such worries, telling pro-nuclear neighbour France that Germany can get its power via renewable technology.

“This is more than consensus for a nuclear exit, this is consensus for a switch to renewable energy,” she told the Bundestag earlier.

“We want to remain an industrial nation and sustain growth. But we want to organise that growth so that we guarantee quality of life for coming generations as well,” she said, adding that solar, wind and biofuel technology would provide the key.

Lawmakers also voted to maintain Germany’s current system of subsidies unchanged for the solar and onshore wind industries, and offer improved incentives for wind power generated offshore.

Germany, which gets close to a fifth of its energy from renewable sources, aims to raise that figure to 35 percent by 2020, but industry representatives joined the SPD and Greens in arguing the reforms for that sector did not go far enough.

“The new energy bill is inadequate,” renewable energy association (BEE) president Dietmar Schuetz said. “The government, despite its early move to exit nuclear energy, has failed to formulate ambitious goals for faster energy reforms.”

Energy association BDEW estimated that between 8-17 gigawatts of new capacity — mostly greenhouse gas-generating gas and coal-based — will have to be built over the next decade to counter the volatility of green power and to make up for lost nuclear capacity.

But E.ON said it felt no pressure to replace nuclear plants with alternatives, implying the leading German energy firm would have to buy more electricity from European competitors, burdening earnings.

Chief Executive Johannes Teyssen declined to comment on how strongly this will weigh on group profit.

German Steel industry federation WV Stahl estimated energy costs for its members would rise “by up to 100 million euros per year” due to changes in the subsidy system for renewables.

OPPOSITION CLAIMS WIN

The opposition pushed through its own anti-nuclear power law when in government in 2002 but that was halted by Merkel last year, until events in Japan “shocked” her, in her own words.

Of Thursday’s package, the SPD and Greens approved only the nuclear exit law as the other legislation did not go far or fast enough towards renewable energy and away from nuclear and carbon fuels for their liking.

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