Germany's cabinet Monday approved a series of laws to make possible an exit from atomic energy by the end of 2022, including measures for a massive increase of onshore and offshore wind power, the accelerated expansion of the electricity grid, and more gas-fired generation capacity.
Germany
's
cabinet Monday approved a series of laws to make possible an exit from atomic
energy by the end of 2022, including measures for a massive increase of onshore
and offshore wind power, the accelerated expansion of the electricity grid, and
more gas-fired generation capacity.
Despite being behind schedule on plans for wind parks off
Germany
's
North and
Baltic Sea
coasts, the government is sticking to an ambitious
offshore wind energy target.
"We want to expand wind power at sea in the next 20 years, to a
(electricity generating) capacity of 25 gigawatt," Transport and
Construction Minister Peter Ramsauer said at a press conference. "That is
equivalent to the generating capacity of 18 to 20 nuclear power stations."
The cabinet agreed a gradual phase out from nuclear power, with one of its 17
nuclear power stations each being switched off in 2015, 2017 and 2019, and
three each in 2021 and 2022, Environment Minister Norbert Roettgen said.
Another seven reactors, which German Chancellor Angela Merkel ordered be
temporarily shut in March following the disasters at the nuclear reactors in
Fukushima
,
Japan
, are
to stay switched off. An eighth plant that had been off the grid for a review
will also remain shut.
Merkel--under immense pressure from mass protests against nuclear power in
Germany
and
an increasingly anti-nuclear electorate--has tried to reach a consensus on her
nuclear exit strategy with the opposition Social Democrats and Greens.
"We transform an issue of decades of fights in society to a
consensus," Roettgen said Monday, adding that the nuclear exit strategy
will make
Germany
more
competitive and link economic growth to a "perspective for the
future."
Wind is a key part of the equation as
Germany
targets to boost the share of its electricity consumption met by renewable
power from currently 17% to 35% by 2020, 50% by 2030, and 80% by 2050.
To kickstart the construction of more offshore wind farms,
Germany
's KfW
development bank will finance 10 wind farms with a combined EUR5 billion. The
government also has decided to delay the start of an annual lowering of
subsidies for offshore wind power to 2018 from 2015.
The government plans to facilitate the upgrading--or repowering as it is
known--of existing wind farms with more potent and efficient turbines, Ramsauer
said.
Another law seeks to accelerate the construction of more transmission lines to
bring electricity from onshore and offshore wind farms in
Northern
Germany
to industrial centers in the South.
The government amended the planned annual rate of decrease in the size of
subsidies for onshore wind power to 1.5% instead of 2%.
But Roettgen insisted that subsidies must be phased out eventually.
"We want and will introduce renewable energy to the market," he said.
The government also decided to scrap further one-off cuts in solar energy
subsidies that it had considered.
Instead, it maintained a system of reducing solar subsidies by a base rate of
9% each year to be complemented by a variable percentage rate, depending on how
much new generation capacity is installed each year.
Germany
promotes photovoltaic solar energy facilities--mostly rooftop
installations--through feed-in rates that guarantee minimum prices for the
electricity they generate. Effectively, electricity consumers are paying for
subsidizing renewable energies.
To avoid energy supply shortcomings the government is banking on a faster
expansion of renewable energies and new fossil-fuelled power plants. Particularly
gas-fired power plants--which emit less carbon dioxide than coal-power plants
and are cheaper to build--are supposed the fill the gap that the nuclear exit
will leave. The government plans to incentivize the construction of new
gas-fired power plants, but to promote competition and break the dominance of
the four incumbent power producers--E.ON AG (EOAN.XE), RWE AG (RWE.XE), EnBW
Energie Baden-Wuerttemberg AG and Vattenfall Europe-the support will be limited
to utilities that own less than 5% of
Germany
's
electricity production capacity.
Economics Minister Philipp Roesler Monday said that around 10GW of new
fossil-fuelled generation capacity are under construction and due to begin
service by 2013. He added, however, that another 10GW of coal and gas-fired
power plants will be needed by 2020 to secure power supply.
Energy utilities have, however, said that power prices are presently too low to
make the construction of such power plants economically viable.
The government also will allocate EUR1.5 billion a year to make buildings more
energy efficient.
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