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It looks like Swedish state company Vattenfall can emerge winner in German nuclear clamp down



  

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Tuesday, 07 June 2011
The German government’s decision to abolish nuclear power in the nearest future has led to bruised shoulder with the Swedish energy giant Vattefall. But it looks like all is not lost for the company as previoulsy feared.

The company thought that it will be initially expensive for it to get out of its operation in Germany based on the scheme presented by the Germans. This will include large expected write-downs in the value of Vattenfall's nuclear power stations. But it looks like the company could come out from the deal better than thought.

“We expect compensation from the German state, "said Vattenfall CEO, �ystein L�seth in an interview with the Swedish news agency TT, in a first comment on the decision.
Other sectors of Vattenfall looks likely to expand with coal power which it was already being decommissioned in other places such as Denmark and Poland becoming more precious to the Germans once more.
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All this however, depends on the outcome of the compensation negotiations with the German state. The closing decision may have strong impact on the price of energy which is already visible in the trade of future energy deliveries.
Every body is now saying that electricity will probably be more expensive, mainly on the continent. But the weather in Scandinavia has more impact on prices and Sweden is not spared, according to the Vattenfall Chief.

According �stein L�seth, the Germans' decision will likely have no change in strategy for Vattenfall's subsidiaries. He has not received new directives from the owners, the Swedish government and the Swedish state, as such the line drawn previously will gradually be followed.

“Coal power business is perhaps even more important for the Germans now, "he said. It calls also for investment in more renewable energy in Germany and this is another area where Vattenfall can win. He does not however, sees any change in the Swedish nuclear power plan along the lines of the Germans.

Vattenfall has been in the past years gradually withdrawing from the production of dirty power, which is power generated from coals. Swedish media had always accused the company of intensifying pollution by expanding in coals powered power production.

But now with a rush by the Germans to close down their nuclear power stations, it calls for a reverse to coal which is the only source that can provide cheaper power and which would not  by interrupted by the weather, unlike hydro which during intense winter water in reservoir get frozen. Coal power also is not likely to be affected by natural disaster - the like of what happened in Japan that created it nuclear melt down
By Scancomark.se Team


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