Germany considers reviving nuclear power amid unprecedented spending package 

The CDU/CSU has proposed reviving nuclear power in Germany, aiming to extend the life of decommissioned plants by up to 20 years. According to Handelsblatt, state-owned Uniper is being considered as a potential operator. However, energy firms like RWE and Eon oppose the plan, citing past investments and compensation received during the nuclear phase-out. Critics, including the BDI and environmental groups, highlight safety, waste disposal, and economic concerns. A Boston Consulting Group study notes higher electricity costs since 2011 but deems reactivation impractical. The SPD remains opposed, making legislative hurdles likely. (Merkur)  

Why does this matter? 

Germany's new leader, Friedrich Merz, takes charge of a country grappling with a weakening economy, creaking infrastructure, and growing energy security concerns. At the same time, Germany faces the challenge of steering the European Union through a trade war with the United States, sparked by President Donald Trump's protectionist policies. In early March, Merz pushed an unprecedented spending package through government, unlocking trillions of euros for infrastructure and military spending. This initiative rewrites German fiscal policy, overriding the so-called “debt brake,” a law introduced by Angela Merkel in 2009 that limits government borrowing to 0.35% of GDP. 

As part of the broader spending spree, up to €500bn ($543bn) may be raised over the next 12 years to fund infrastructure investment. This includes €100bn allocated to federal states for their own infrastructure needs, €300bn for federal government projects and €100bn earmarked for climate protection efforts. 

Now, with this economic reshaping underway, Merz has set his sights on nuclear power – an issue that has long divided German politics. The nuclear debate traces back to 1961, when the first nuclear plant in Kahl, Bavaria, began operations. Over the decades, nuclear power has faced fierce opposition, fuelled by mass protests in the 1970s, the Chernobyl disaster in 1986, and the 2011 Fukushima meltdown. Despite these challenges, successive governments continued to support nuclear energy until Merkel’s government decided to phase out the reactors in the wake of the Fukushima disaster. Despite this trend, a recent poll suggests 55% of Germans would support a return to nuclear power.  

Germany has operated without nuclear power, since 2023, but now the government believes that recommissioning old plants is a viable option. Nuclear plants have long lifespans – Switzerland’s Beznau 1 is the world's oldest operating reactor at 54 years old. Countries like Bulgaria, the Czech Republic, and Hungary have extended the licenses of their reactors to run for 60 years, subject to safety checks. In Sweden and Finland, reactors have been approved for operations of up to 70 or 80 years, respectively. 

The CDU/CSU’s proposal is to restart Germany’s recently shut-down nuclear plants, aged between 42-44 years old, with Uniper potentially stepping in to manage them. The government is calling for a detailed safety assessment from Germany’s key regulatory bodies to determine whether such a move is feasible. Germany’s nuclear engineering lobby, the KernD Group, has suggested that up to six nuclear power stations could theoretically be reopened. The group, which includes subsidiaries of Westinghouse, Framatome, and Nukem, argues that the reactors could be reactivated quickly and cost-effectively. Recommissioning would require an investment of €1-€3bn per station, the group estimates, adding that the sooner a decision is made, the lower the costs and the faster the plants can rejoin the grid. 

Opposition remains strong with think tank Boston Consulting Group claiming the proposal is "neither financially nor practically feasible". RWE and Eon have long rejected the idea, although this is likely because they may need to repay compensation from the nuclear phase-out.