07 September 2010 17:49 [Source: ICIS news]
The government’s plan - launched on Monday - to vastly increase renewable energy’s share was not yet viable as
Rather, the plan would trigger a “cost landslide” for both industry and consumers, he said.
Producers were already facing soaring costs from emissions trading, subsidies towards renewables, and rising eco-energy taxes, he said.
“Energy must be secure, clean and affordable,” he said.
Under Merkel’s proposal,
The government would promote wind power production facilities in the
At the same time, the government would extend the life-span of its nuclear power plants by an average 12 years, with the individual life-span extensions depending on the age of the respective nuclear power facility.
Germany's last nuclear power plant was expected to stop producing by around 2036. An earlier government had committed
In return for the life-span extension, nuclear power plant operators would be subjected to a special tax – a measure a number of industry leaders have opposed.
The nuclear power industry would also be required to make “an additional contribution” towards
The extension of the nuclear plants’ lifespan was needed to meet
The nuclear industry – as well as coal - would continue to have an important role as “bridge technologies,” she said.
Merkel said the government would seek to implement the plan without the Bundesrat, the upper legislative chamber that represents
Merkel's ruling Christian Democrats-Liberal party coalition lost its majority in the upper house last month when a Social Democrat-Green Party coalition took office in
North Rhine-Westphalia’s state prime minister Hannelore Kraft said the state would file a constitutional challenge should Merkel’s government circumvent the Bundesrat.
Meanwhile, a number of German cities and towns said the extension of nuclear power was jeopardising their investments in renewables.
However, a bioethanol industry group – Bundesverband der deutschen Bioethanolwirtschaft (BDB) – on Tuesday welcomed the government’s plan as it would pave the way for a higher ethanol quota in gasoline, it said.Check out Doris de Guzman’s Green Chemicals Blog for views on sustainability issues
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