Politics

Germany Will Abandon Nuclear Power

 

By Juergen Baetz

BERLIN -- Europe's economic powerhouse, Germany, announced plans Monday to abandon nuclear energy over the next 11 years, outlining an ambitious strategy in the wake of Japan's Fukushima disaster to replace atomic power with renewable energy sources.

Chancellor Angela Merkel said she hopes the transformation to more solar, wind and hydroelectric power serves as a roadmap for other countries.

"We believe that we can show those countries who decide to abandon nuclear power -- or not to start using it -- how it is possible to achieve growth, creating jobs and economic prosperity while shifting the energy supply toward renewable energies," Merkel said.

Merkel's government said it will shut down all 17 nuclear power plants in Germany -- the world's fourth-largest economy and Europe's biggest -- by 2022. The government had no immediate estimate of the transition's overall cost.

> > Bull or Bear? Vote in Our Poll

AP
German Chancellor Angela Merkel, right, speaks before she receives a report of the government-mandated commission on the ethics of nuclear power by chairman Klaus Toepfer, left, in Berlin on Monday.

The plan sets Germany apart from most of the other major industrialized nations. Among the other Group of Eight countries, only Italy has abandoned nuclear power, which was voted down in a referendum after the 1986 Chernobyl disaster.

The decision represents a remarkable about-face for Merkel's center-right government, which only late last year pushed through a plan to extend the life span of the country's reactors, with the last scheduled to go offline around 2036. But Merkel, who holds a Ph.D. in physics, said industrialized, technologically advanced Japan's "helplessness" in the face of the Fukushima disaster made her rethink the technology's risks.

Phasing out nuclear power within a decade will be a challenge, but it will be feasible and ultimately give Germany a competitive advantage in the renewable energy era, Merkel said.

"As the first big industrialized nation, we can achieve such a transformation toward efficient and renewable energies, with all the opportunities that brings for exports, developing new technologies and jobs," Merkel told reporters.

The government said the renewable energy sector already employs about 370,000 people.

Germany's seven oldest reactors, already taken off the grid pending safety inspections following the March catastrophe at Japan's Fukushima Dai-ichi nuclear plant, will remain offline permanently, Merkel said. The plants accounted for about 40% of the country's nuclear power capacity.

To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
blog comments powered by Disqus

TheStreet Premium Services

Jim Cramer
Jim Cramer's Action Alerts PLUS:
Trade right alongside a Wall Street pro — enjoy access to his Charitable Trust portfolio and be sent trade alerts BEFORE he makes a move. Learn More
OptionsProfits
OptionsProfits:
Get 50+ trade ideas a week from the industry's top options experts. Plus — exclusive commentary on market trends and essential trading tools. Learn More
Real Money
Real Money:
Our team of professional Wall Street Pros — including Jim Cramer, Doug Kass, and Nicholas Vardy — delivers intelligent analysis, timely trade ideas, and colorful commentary. Learn More
Stocks Under $10
Stocks Under $10:
Break into the market with small- and mid-cap stocks... all $10 or less! David Peltier tells you exactly which low-priced stocks he's buying and selling. Learn More
Dow Jones S&P 500 NASDAQ 10-Year Note
12,454.83 1,317.82 2,837.53 17.45
Oil *
107.26
DOWN
74.92
DOWN
2.86
DOWN
1.85
DOWN
0.14
10 Yr
1.74%
SPDR Gold
152.68
-0.60%
-0.22%
-0.07%
-0.80%
Data delayed 20 minutes

Top Stories and Tools

Articles From

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

We respect your privacy.
Podcasts

Connect with TheStreet