Germany puts nuclear companies in the spotlight
This weekend Germany announced a reversal policy to phase out all 17 of its nuclear power stations by 2022 making it the biggest industrial power to give up nuclear energy with “no clause for revision” according to Environment Minister Norbert Rottgen. This bold stance will increase the pressure on other European countries from anti-nuclear campaigners for their governments to follow suit.
Nuclear power supplied 23% of Germany’s energy and the announcement caused shares in RWE and E.ON to plummet by 1.7% and 2.3% respectively as RWE had already stated that the government’s move would hit profits by a “three-digit million-euro” figure. Additionally, RWE and E.ON were the biggest fallers in Alva’s Reputation index decreasing by 1.23% and 1.97% respectively as the announcement triggered increased negative coverage over the future of nuclear power internationally and stock market jitters.
Germany’s move is likely to increase “renewable competition” worldwide and it threw down the gauntlet to the UK whose own coalition government has set the target to become the “greenest” government ever.
This article was written by Nicholas Chrysanthou, energy consultant analyst at Alva and released in full on Energy Business Review.
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