UPDATE: German Nuclear Stocks Down Post Japan Reactor Troubles
14 March 2011 - 9:15PM
Dow Jones News
Shares in German nuclear power plant operators RWE AG (RWE.XE)
and E.ON AG (EOAN.XE)--the country's largest utilities--came under
pressure Monday as explosions at Japanese reactors cast doubt over
the controllability of atomic energy.
The accidents at Japanese nuclear reactors that followed a
devastating earthquake and subsequent tsunami Friday re-ignited the
nuclear debate in Germany--a country notoriously suspicious of
nuclear energy.
Meanwhile, solar energy and wind power equipment makers gained
sharply as investors anticipated the incidents in Japan could
result in faster expansion of alternative and greener energy
sources.
The nuclear disaster prompted German Chancellor Angela Merkel
over the weekend to announce a thorough review of the safety
standards of the country's reactors.
"On the question of safety, there can't and won't be any
compromise," Merkel said, but added it is too early to tell whether
the accident will have consequences for Germany's nuclear policy or
the decision on the nuclear life-span extension.
German Environment Minister Norbert Roettgen also over the
weekend said the accidents in Japan raise doubts about the use of
nuclear energy.
"Nuclear energy is an obsolescent model," Roettgen said on ARD
television. "Now the question is, whether the availability of
alternative energies can be accelerated," Roettgen added.
Despite widespread rejection of nuclear power by the German
population, the government last year decided to allow nuclear power
stations to operate by on average 12 years longer than previously
planned. The measure overturned a decision from a decade earlier to
switch off Germany's last nuclear reactor in 2022.
The nuclear extension is part of a broader energy roadmap
through 2050 which also includes targets for drawing more power
from renewable energy, modernizing power grids, and improving
efficiency.
Four decades from now, the government wants greenhouse gas
emissions to be 80% lower and for some 60% of the country's power
to come from renewable sources--up from about 16% today.
To make that goal more realistic, the lifespan of the country's
17 nuclear reactors will be extended, allowing them to serve as a
"bridge technology," Chancellor Merkel's government has repeatedly
said.
At 0929 GMT, RWE was down 3.5% at EUR46.25, while E.ON shares
traded lower 3.1% at EUR22.37.
Shares in solar cell makers Q-Cells SE (QCE.XE) and SolarWorld
AG (SWV.XE) as well as wind turbine maker Nordex SE (NDX1.XE)
traded sharply higher, posting gains of 16.1%, 13.9% and 20.1%
respectively.
-By Jan Hromadko, Dow Jones Newswires; +49 69 29 725 503;
jan.hromadko@dowjones.com