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Glos: Germany must diversify energy after Russia gas dispute

Germany's economy minister has called for diversifying the country's energy sources after the recent gas crisis in Europe, hinting Berlin should take another look at phasing out nuclear power.

Glos: Germany must diversify energy after Russia gas dispute
Photo: DPA

“The current gas crisis has been it clear to the eyes of everyone that we cannot allow ourselves to reject any source of energy,” Michael Glos told the Monday edition of business newspaper Handelsblatt.

Germany is in the process of phasing out nuclear energy plants by 2020, a plan voted on under previous leftist Social Democrat (SPD) chancellor Gerhard Schröder, and was a condition for SPD to join the current “grand coalition” government of conservative Angela Merkel.

But Glos, a fellow conservative, predicted that the next German parliament will vote on extending the life of the country’s nuclear plants. Merkel, who is expected to remain chancellor after general elections in September, has let it be known that she would campaign for extending the life of the most modern nuclear plants.

The energy debate has intensified since the supply of Russian gas to Europe was disrupted over a payment dispute between Russia and the transit country Ukraine, which may finally be resolved Monday after a standoff that began on January 1.

But Germany has lost confidence in its energy suppliers in the wake of the crisis and must take steps to be better equipped in the future, Glos said.

That involves finding other sources of natural gas, he said, but also in general working to reduce Germany’s dependence on gas imports and rethinking the country’s energy policy.

That view is shared by the head of Germany’s second biggest energy provider RWE, who supports the use of nuclear power.

“If we do not want to increase our dependence on energy imports, we need to have nuclear energy,” Jürgen Grossman said.

BUSINESS

France’s EDF hails €10billion profit, despite huge UK nuclear charge

French energy giant EDF has unveiled net profit of €10billion and cut its massive debt by increasing nuclear production after problems forced some plants offline.

France's EDF hails €10billion profit, despite huge UK nuclear charge

EDF hailed an “exceptional” year after its loss of €17.9billion in 2022.

Sales slipped 2.6 percent to €139.7billion , but the group managed to slice debt by €10billion euros to €54.4billion.

EDF said however that it had booked a €12.9 billion depreciation linked to difficulties at its Hinkley Point nuclear plant in Britain.

The charge includes €11.2 billion for Hinkley Point assets and €1.7billion at its British subsidiary, EDF Energy, the group explained.

EDF announced last month a fresh delay and additional costs for the giant project hit by repeated cost overruns.

“The year was marked by many events, in particular by the recovery of production and the company’s mobilisation around production recovery,” CEO Luc Remont told reporters.

EDF put its strong showing down to a strong operational performance, notably a significant increase in nuclear generation in France at a time of historically high prices.

That followed a drop in nuclear output in France in 2022. The group had to deal with stress corrosion problems at some reactors while also facing government orders to limit price rises.

The French reactors last year produced around 320.4 TWh, in the upper range of expectations.

Nuclear production had slid back in 2022 to 279 TWh, its lowest level in three decades, because of the corrosion problems and maintenance changes after
the Covid-19 pandemic.

Hinkley Point C is one of a small number of European Pressurised Reactors (EPRs) worldwide, an EDF-led design that has been plagued by cost overruns
running into billions of euros and years of construction delays.

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