Energy expert Sergei Kondratiev: Demanding compensation for abandoning nuclear energy

German energy concerns EON and RWE demanded 15 billion euros in compensation from the German government for abandoning nuclear energy. The decision to close nuclear power plants in Germany after the Fukushima accident brought companies billions in losses. The abandonment of just two reactors in 2011 cost E.ON €2.5 billion. Experts expect an increase in electricity prices in Germany. The Swedish company Vattenfall may also join the lawsuit. In order for Germany to implement its plan to gradually close all nuclear power plants in the country by 2022, it is necessary to lay 3.8 thousand km of new energy networks, which will cost the state approximately 20 billion euros.

Sergey Kondratyev , head of the sector of the economic department of the Institute of Energy and Finance Foundation:

This is truly a precedent. And the German energy concern E.On AG can be understood - the government rather abruptly decided to abandon nuclear energy. Because of this, energy companies, not only E.On AG, but also RWE, are suffering quite large losses, as we can see from the reporting for 2011. Moreover, these losses will be extended over time further, since the situation will remain uncertain. The loss of this capacity and the increase in the cost of electricity generated from other sources may be a mixed bag overall.

The demand for compensation is partly natural. Now it is quite difficult to say what the outcome of this case will be. I think that both the concern itself and Angela Merkel, before the latest defeats in a series of state elections, spoke of a rather cautious attitude towards the accelerated decommissioning of nuclear power plants. If Angela Merkel manages to retain her post in the upcoming elections, then perhaps this law will be returned to.

This lawsuit is largely connected with showing both the government and German society that someone must also pay for this abandonment of the peaceful atom. According to some reports, we are talking about damages worth 15 billion euros. In principle, someone has to pay for this accelerated decommissioning. Since the decision was made by the government with the support of the majority of taxpayers, then they too should pay. From this point of view, the claim is fair. This will be a precedent in history.

Perhaps a similar thing will happen in Switzerland and some other countries that are talking about accelerating the abandonment of nuclear energy, not based on any objective technical studies, but simply on the fact that this power plant simply needs to be decommissioned.

Germany's previous refusal of nuclear energy was during the coalition of the SPD and the Greens, when the final decision was made to abandon new construction. Calculations made after Merkel came to power showed that a refusal would lead to a fairly serious rise in prices. Oil and gas prices were at their peak then. In 2007-2008, and even during the 2009 crisis, nuclear electricity supported German industry. Because if they had bought very expensive gas from us for electricity production at the beginning of 2009, there would have been more bankruptcies and the economic situation as a whole would have been worse than what actually existed.

Germany's refusal and claims are now being considered by German concerns as a subject of possible bargaining. The government will now begin to intensively recalculate its estimates and capabilities. It seems to me that he will have many ways out of this situation - from offering targeted subsidies to what many are unhappy with - accelerated development of renewable energy. In this case, part of the subsidized tariffs is transferred to traditional energy and further reduces its competitiveness.

In this regard, a complex bargaining is currently taking place in Germany between the government and energy workers - what conditions they would like to receive not only in the nuclear energy sector, but in the entire electricity industry - on the same renewable sources, on problems associated with emissions trading, and in general on a range of issues. This constant pressure of less income and more expenses cannot last long.