Scholz Overrules Greens in Surprise Move to Extend Nuclear Power

(Bloomberg) -- German Chancellor Olaf Scholz ordered an extension in the life of the country’s three remaining nuclear plants until mid-April 2023 -- a dramatic reversal of an earlier decision by Economy Minister Robert Habeck -- as the country contends with an unprecedented energy crisis. 

Scholz’s decision, which came late Monday after a day of speculation, is designed to end a standoff between his two coalition partners, the Greens and the Liberals. While Habeck’s Greens are ideologically opposed to nuclear power, the business-friendly Free Democrats under the leadership of Finance Minister Christian Lindner argue that Germany should use all the generation capacity available to tackle the crisis.

Habeck, who is also responsible for energy in the cabinet, had initially planned for only two of the three remaining plants to operate until April at the latest -- EON SE’s Isar 2 and EnBW AG’s Neckarwestheim 2, which are both in southern Germany. Lindner pushed for all three to run until 2024, including a facility in Emsland, in the northern state of Lower Saxony, operated by RWE AG.

“It is in the vital interest of our country and its economy that we maintain all power generation capacity this winter,” Lindner said in a statement. “The Chancellor has now provided clarity.”

Neither Habeck nor the Greens leadership were available for a comment. At a party convention last weekend, the Greens again voted against an extension of nuclear power.

Germany agreed to phase out nuclear power in the aftermath of the Fukushima disaster in 2011 but Scholz’s government has come under mounting pressure to shore up alternative sources of energy that don’t use expensive natural gas.

Even though Germany’s gas-storage facilities are more than 95% full, the grid operator has warned that it may not be enough to cope with winter demand. The nation’s four transmission operators had also called for all three plants to be kept running until spring to ease Germany’s power crunch.

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