According to the Chamber of Commerce, halting nuclear power generation could lead to higher energy prices and less supply. These concerns are justified, thinks Albert Jan Swart, an industrial economist at ABN Amro. “If less nuclear energy is produced, this can lead to higher electricity costs and this is bad for German industry.”
According to Swart, the chamber of commerce defends its members, which also makes the appeal a lobby for industrial companies. “They have been worried about the price of electricity in Germany for some years now.”
Energy prices have risen sharply since the summer of 2021, partly due to the war in Ukraine. In recent months, for example, gas prices have been falling, although they are still higher than they were two years ago. According to the Chamber of Commerce, the three nuclear power plants are not expected to close this weekend, but should “continue to operate until the end of the energy crisis”.
Highly addicted
German business is heavily dependent on energy. “The industrial sector accounts for a quarter of the total German economy,” Swart says. ‘There is a lot of chemical and steel industry. The intention is for the industry to say goodbye to fossil energy and become more electrified. ‘This requires a large supply of affordable electricity. But prices are still high, especially compared to prices in Asia.’
Shutting down nuclear power plants could actually lead to even higher electricity prices, thinks Swart. ‘Germany is producing more and more wind and solar energy. This is good news, but on days when there is little wind or inclination, nuclear power is a practical alternative.’
Alternatives
There are alternatives, such as lignite. ‘But for every kilowatt-hour of electricity generated with lignite, one kilogram of CO2 is emitted. Nuclear power has zero emissions,’ Swart points out. Furthermore, an economic institute in Germany says that more energy should be bought on the international market. But there are also risks, thinks Swart. ‘As more countries are doing this, the supply is getting smaller and smaller. And we see that the supply from France is lower due to the strikes. And that makes the available alternatives less attractive.’
By closing the last three nuclear power plants, Germany wants to become more sustainable without having to use nuclear energy. The country has been wanting to get rid of nuclear power for about twenty years and the plants should have been closed at the end of last year. Plans have been postponed due to the war in Ukraine and lower gas supplies from Russia.