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The President of France, Nicholas Sarkozy, issued a strong commitment announcing the energy funding package by declaring there is “no alternative to nuclear energy today.”
As a long time proponent of nuclear power, last week France announced that it will invest $1.4 billion in its nuclear energy program, diverging from contentious deliberation from neighboring states on nuclear energy policy after the earthquake and tsunami in Japan that damaged the Fukushima Daiichi plant in March. The President of France, Nicholas Sarkozy, issued a strong commitment announcing the energy funding package by declaring there is “no alternative to nuclear energy today.” With the capital used to fund fourth generation nuclear power plant technology, focusing research development in nuclear safety, the announcement validates many decades of energy infrastructure and legacy expansion. France currently operates the second largest nuclear fleet in the world with 58 reactors, responsible for supplying more than 74 percent of domestic electricity demand supplied to the world’s fifth largest economy last year.
At the end of last month, French uranium producer, Areva Group (EPA:AREVA), and Katko announced plans to increase production to 4,000 tonnes of uranium next year. Katco is a joint venture for Areva, the world’s largest builder of nuclear power plants, and Kazatomprom the national operator for uranium prospecting, exploration and production for Kazakhstan.
German closure
The pronouncement to maintain the nuclear prominence in France provides a strong counterweight to other countries in the region. Germany recently announced the phased shutdown of its 17 nuclear power stations by 2022. Last week, Germany’s federal parliament voted overwhelmingly to close its remaining nine active plants according to a preset 11 year schedule. A Federal Network Agency, which oversees German energy markets, will decide by the end of September whether one of the eight nuclear plants already closed in recent months should be kept ready on a “cold reserve” basis, to facilitate the transition for national energy supply.
The German commitment to an energy policy transition indicates that the national power mix towards renewable sources will have to double from its present range of 17 percent to an ambitious 35 percent. Subsidies for hydro electric and geothermal energy will increase; however, financial support for biomass, solar, and wind energy will be reduced. German Chancellor Angela Merkel has said she would prefer for utility suppliers not to make up any electrical shortfalls after 2022 by obtaining nuclear power from neighboring countries like France.
Germany will require an expansive supergrid to effectively distribute electricity from the north to growing industrial urban centers like Munich, in the south. In order to execute this plan the new laws call for the addition of some 3,600 kilometers of high capacity power lines. Germany’s strategy will partially include the expansion of wind turbines on the North Sea, enabling some 25,000 megawatts’ worth of new offshore wind power which will have to be developed by 2030.
Nuclear persistence in the United Kingdom
Last month, the government in the United Kingdom maintained its strong commitment to nuclear energy, confirming a series of potential locations for new nuclear builds. The national policy statements on energy said renewables, nuclear and fossil fuels with carbon capture and storage “all have a part to play in delivering the United Kingdom’s decarbonisation objectives,” and confirmed eight sites around the country as suitable for building new nuclear stations by 2025. The statements, which are to be debated in Parliament, include a commitment for an additional 33,000 megawatts of renewable energy capacity, while the government said more than $160 billion will be required to replace around 25 percent of the country’s generating capacity, due to close by 2020. The Scottish government has also softened its tough opposition to nuclear power, following recognition by the energy minister of a “rational case” to extend operations at Scotland’s two nuclear plants.
Additional Eurozone participation
In June, Italian voters rejected a government proposal to reintroduce nuclear power. The plan by Prime Minister Silvio Berlusconi to restart Italy’s nuclear energy program abandoned during the 1980s, was rejected by 94 percent of voters in the referendum.
Another regional stakeholder, the Swiss government has decided not to replace the four nuclear power plants that supply about 40 percent of the country’s electricity. The last of Switzerland’s power nuclear plants is expected to end production by 2034, leaving time for the country to develop alternative power sources. Although the country is home to the oldest nuclear reactor presently in operation, the Swiss Energy Foundation has stated an objective to work for “an ecological, equitable and sustainable energy policy”. Its “2000 watt society” promotes energy solutions which employ renewable energy resources other than fossil fuels or nuclear power.