Friday, September 23, 2011

Opportunity for Thermal Power Scale - up as Germany Turns Away from Nuclear

Summary

As Germany accelerates towards a complete nuclear phase out, the gap created in the country’s energy mix will present opportunities for scaling up other power generation resources. Due to increased safety concerns with the use of nuclear power in Germany, growing public discontent and increased political pressure forced the government to recently announce the complete phase out of its nuclear generation capacity by 2022. The recent nuclear crisis in Japan acted as a stimulus by further accelerating the phase out process. The government, while announcing the phasing out of all the nuclear power plants in Germany, also declared that they will further develop renewable energy generation sources as a replacement. However, within a few days of this announcement the government was already trying to make arrangements with Russia and Australia to secure their energy supplies. Russia supplies natural gas to Germany while Australia is the largest coal exporter in the world. The German government realizes that scaling-up renewable energy resources, which are still expensive and intermittent, will require further development in order to fully substitute the entire nuclear capacity of the country. Therefore, in order to achieve energy security and reliability with sustainable economic growth, the country cannot look away from the thermal power resources, still contributing to more than half of the total generation capacity in the shorter term. The unfolding events as Germany turns away from nuclear power have presented an opportunity for thermal power scale-up in the country.

Scope

- Market prospects of thermal power in the Germany due to nuclear phase out
- Key issues influencing the thermal power scale-up in Germany
- Future and current market potential offered by thermal power generation
- Regulatory support for thermal power scale-up in Germany

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