# Explainer-Could Germany keep its nuclear plants running? Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-08-18 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: German utilities considering extending nuclear reactor Meta Description: German utilities may keep three nuclear reactors running due to gas supply fears. Decision could impact economy and energy security. URL: https://financedigest.com/explainer-could-germany-keep-its-nuclear-plants-runninghtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-08-18t144341z3lynxmpei7h0ohrtroptp4ukraine-crisis-germany-nuclear-1736815437743-compressed.jpg) FRANKFURT (Reuters) – German utilities have said they may operate the country’s three remaining nuclear reactors beyond their scheduled year-end closure date, but it is up to Berlin to get the ball rolling. Power grid operators are currently stress testing the transmission system to assess the risks of an escalation in the the Russian gas supply crisis as winter approaches, with the results expected shortly. The outcome could prompt the government to extend the life of the reactors as it attempts to power the economy and ward off a recession seen as increasingly likely if faltering Russian gas exports stop entirely. Former Chancellor Angela Merkel initiated legislation to halt the use of nuclear [power](https://www.financedigest.com/edf-edison-ansaldo-team-up-to-develop-nuclear-power-in-europe.html "EDF, Edison, Ansaldo team up to develop nuclear power in Europe") after the Fukushima nuclear disaster of 2011 with a majority of voters in favour, but attitudes are shifting amid fears of fuel shortages.\[POWER/DE\] A reversal or postponement of the exit plan would mean utilities E.ON, RWE and EnBW having to re-arrange decommissioning schedules and staffing provisions, while legal, safety and liability [issues would have to be worked](https://www.financedigest.com/voice-quality-matters-quarter-of-employees-working-from-home-still-experiencing-regular-connectivity-issues.html "Voice Quality Matters: Quarter of Employees Working From Home Still Experiencing Regular Connectivity Issues") out with Berlin. Here are answers to a few urgent questions: WHY THE NEED? Russia has cut gas flows through the major [Nord Stream](https://www.financedigest.com/denmark-invites-nord-stream-operator-to-help-salvage-unidentified-object.html "Denmark invites Nord Stream operator to help salvage unidentified object") 1 pipeline to Germany to just 20% of capacity. Moscow says [Western sanctions over the invasion of Ukraine](https://www.financedigest.com/analysis-russian-gold-removed-from-some-western-funds-after-ukraine.html "Analysis-Russian gold removed from some Western funds after Ukraine") are hindering equipment repairs, while Europe says this a pretext to reduce flows and use gas as a political weapon, an argument Russia rejects. Germany, Russia’s single biggest gas buyer, cut use of the fuel by 15% during January-June. Although it is exploring other [sources of supplies](https://www.financedigest.com/exclusive-kazakh-mcdonalds-shut-outlets-temporarily-after-halting-supplies-from-russia-sources.html "Exclusive-Kazakh McDonald’s shut outlets temporarily after halting supplies from Russia – sources"), it remains dependent on Russia. Energy regulator the Bundesnetzagentur [says tight supply](https://www.financedigest.com/ceraweek-europe-gas-supplies-to-stay-tight-2-more-winters-equinor-ceo-says.html "CERAWEEK-Europe gas supplies to stay tight 2 more winters, Equinor CEO says") means there will be problems keeping consumers warm and industry functioning, while surging gas prices increase the risk of recession. Gas-fired [plants account for 15% of power](https://www.financedigest.com/edpr-brings-iberias-first-wind-solar-power-plant-on-stream.html "EDPR brings Iberia’s first wind-solar power plant on-stream") generation, some of which could be replaced by nuclear as well as increased use of imported and domestic coal. Using less gas to [heat Germany’s](https://www.financedigest.com/scientists-in-germany-turn-up-heat-on-seagrass-in-climate-change-fight.html "Scientists in Germany turn up heat on seagrass in climate change fight") 41 million households would free up more for industry. E.ON, RWE and EnBW operate 4,300 megawatts (MW) of [nuclear power](https://www.financedigest.com/shelling-damages-zaporizhzhia-nuclear-plants-backup-power-line-iaea.html "Shelling damages Zaporizhzhia nuclear plant’s backup power line -IAEA") capacity via their respective Isar 2, Emsland and Neckarwestheim 2 reactors. Along with three other reactors which closed at the end of last year, nuclear recently generated 12% of [Germany’s electricity](https://www.financedigest.com/germany-added-35-more-electric-car-charge-points-in-2022-says-bdew.html "Germany added 35% more electric car charge points in 2022, says BDEW"). Germany also has solar and wind options and is [developing liquefied natural gas](https://www.financedigest.com/unconventional-gas-market-to-observe-strong-development-by-2018-2026.html "Unconventional Gas Market to Observe Strong Development by 2018-2026") (LNG) terminals. WHAT DO THE [OPERATORS SAY](https://www.financedigest.com/britain-sets-5g-goal-says-no-magic-number-of-operators.html "Britain sets 5G goal, says no ‘magic number’ of operators")? E.ON’s [Chief Executive Leonhard Birnbaum says](https://www.financedigest.com/crypto-firms-will-develop-offshore-without-clear-us-rules-coinbase-chief-says.html "Crypto firms will develop ‘offshore’ without clear US rules, Coinbase chief says") it can extend the lifespan of Isar 2 by a few months into 2023 without having to procure fresh fuel rods. RWE [CEO Markus Krebber also says](https://www.financedigest.com/stanchart-ceo-says-at1-bond-wipeout-has-profound-impact.html "StanChart CEO says AT1 bond wipeout has profound impact") the plants could theoretically run in the first weeks of next year but beyond that would require new fuel elements, or even the revitalisation of capacity shut in 2021 – decisions the government would need to make. EnBW’s CFO takes a similar line. WHAT IS THE SYMBOLISM BEHIND [GERMAN NUCLEAR](https://www.financedigest.com/e-on-casts-doubt-on-german-plan-to-keep-nuclear-plants-on-standby.html "E.ON casts doubt on German plan to keep nuclear plants on standby")? The Green Party, now part of the coalition government, traces its origins to the environmentalist movement of the 1970s, which cited [security risks](https://www.financedigest.com/tesla-to-warn-of-data-privacy-risk-from-car-security-cameras-in-germany.html "Tesla to warn of data privacy risk from car security cameras in Germany") and the unresolved question of nuclear waste. It would have to make a U-turn. Restating the usefulness of nuclear [power would vindicate critics of Merkel’s move and populist voices](https://www.financedigest.com/the-power-of-ai-and-voice-in-next-gen-telematics.html "The power of AI and Voice in Next Gen Telematics"). (Reporting by Vera Eckert, Christoph Steitz, Markus Wacket, editing by Kirsten Donovan) --- This blog is powered by Superblog. 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