Germany may extend nuclear programme for a further 12- 20 yearsThis week’s Nuclear Energy Insider news brief includes the following companies and organisations: Eon, RWE, EnBW and Vattenfall; Florida Power & Light Co., Progress Energy Florida, and the Public Service Commission; China's State Asset Supervision and Administration Commission, China’s State Nuclear Power Technology Corp., and China Guangdong Nuclear Power Holding Corp; Tennessee Valley Authority.

Germany may extend nuclear programme for a further 12- 20 years

Despite strong opposition from the Greens, Social Democrats and members of her own CDU party, German Chancellor Angela Merkel is seeking ways to extend the legally-mandated life-cycle of Germany's 17 nuclear plants, on the grounds that industry shares the extra profits it would make.

A report commissioned by and submitted to the German government on Friday suggested that Germany would benefit, in terms of energy prices and emissions reduction, if nuclear plants ran an extra 12 to 20 years.

The government wants Germany’s four nuclear power plant operators to help pay for investment in so-called smart grids and storage capacity for renewable power.

Eon, RWE, EnBW and Vattenfall may face a tax on fuel rods from 2011 that could raise a net 2.3 billion euros ($2.9 billion) a year for the government budget.

The four companies are said to be studying bond sales as part of talks with the government to extend the lifespan of nuclear plants. The bonds would be guaranteed by KfW Group, Germany’s state-owned development bank, according to a report by Bloomberg.

Whether or not the tax is to be imposed remains unclear. Eon, RWE, EnBW and Vattenfall say the tax renders their plants uneconomical, and have threatened to stop supplying the German grid with nuclear power if the tax is introduced.

In response, the government has intimated that it these companies may instead be allowed to pay a voluntary contribution in place of the proposed tax. While the government said the term ‘voluntary’ had been intentionally chosen, it has not yet been confirmed that the new payment will be voluntary.

Florida PSC hearing turns into corporate exposé

A three-day hearing that took place last week on whether consumers should foot the bill in advance for proposed nuclear facilities has escalated into a full hearing and a subpoena of Florida Light & Power’s president to appear before regulators for questioning.

Public Service Commission Chairwoman Nancy Argenziano issued a subpoena Friday that will require FPL President Armando Olivera and two other utility executives to appear before regulators for questioning.

The interrogation will be aimed, in part, at determining whether FPL provided incorrect information on nuclear costs to regulators and whether that affects costs to customers.

The commission also voted to require a full hearing on the utility's nuclear costs instead of postponing that to next year, as FPL and consumer groups had proposed.

During a three-day hearing last week, Florida’s Public Service Commission heard the case for whether customers should continue paying for nuclear power plants that critics say are not needed and may never be built due to rising costs, design issues and conservation efforts that have reduced power demand.

According to a Bloomberg report, Florida Power & Light Co., a subsidiary of NextEra Energy Inc., and Progress Energy Florida, a subsidiary of Progress Energy Inc., are both expanding an existing nuclear facility. Each company wants to continue for another year a nuclear cost recovery rate, at a reduced rate that is part of monthly power bills.

Under the arrangement, the firms could collect the money years ahead of the construction process and keep it even if the projects never generate power. The companies must go to the PSC each year to get their nuclear development costs approved.

The issue is that Progress is planning a nuclear facility in Levy County, which would account for most of the company's recovery rate. It has been delayed five years due to financial and design problems and its estimated cost has increased by US$5 billion to US$22.5 billion.

A clean air group has urged the commission to reject those requests, on the grounds that by placing the recovery fee on hold until the company's final decision whether to build the Levy plant, the utilities and their stockholders would have to "share in this gamble" instead of passing the costs entirely to customers.

Consumer advocates said that all cost recovery should be denied because FPL and Progress have failed to prove a need for more nuclear power or that the expenses are reasonable and prudent.

Egypt announces site of planned nuclear plant

Egypt has announced its intention to build a nuclear plant on the Mediterranean coast of el-Dabaa, according to state news agency MENA.

The plant, which is scheduled to come online in 2019, is to be located in el-Dabaa, on the west coast of Alexandria, according to President Hosni Mubarak’s spokesman, Suleiman Awad.

Egypt’s electricity minister, Hassan Younis, has estimated the plant will cost in the region of US$4bn (€3.1bn) for a 1,000 megawatt plant.

Reports suggest that the Dabaa plant would be followed by three other reactors, tentatively scheduled to start production in 2025.

India passes Nuclear Civil Liability bill

India has passed a nuclear civil liability bill as part of an effort to increase nuclear energy’s overall share of India’s energy market.

The bill will enable greater imports of fuel and equipment to be supplied to India’s nuclear market, which is worth an estimated US$150bn (€118bn; £97bn)..

The passage of the bill was a prerequisite for nuclear equipment suppliers such as Russia, USA and France to gain greater access to India’s market, given that it clearly outlines financial liabilities for suppliers and operators of nuclear plant and equipment.

It will also open the door for global equipment to establish joint ventures and set up low-cost manufacturing plants in India.

The Bill is part of a landmark agreement with the US in 2008, which gave India access to foreign nuclear technology. For more than three decades the country had been barred from trade in civilian atomic technology because of its weapons programme and refusal to sign the nuclear Non-Proliferation Treaty (NPT).

China seeks global talent to run state-owned nuclear firms

China's government has announced a global talent search to fill top posts at 12 major state-owned companies in its latest effort to improve performance at its state-owned enterprises.

The State Asset Supervision and Administration Commission ran a two-page advertisement in the China Daily, which targets foreign readers, announcing its need for "talented candidates from home and abroad" to help strengthen and develop the huge but inefficient government firms.

The posts include general managers of the State Nuclear Power Technology Corp., China Guangdong Nuclear Power Holding Corp., the China State Construction Engineering Corp. and China National Administration of Geology, among others.

Tennessee Valley Authority confirms nuclear commitment

The Tennessee Valley Authority has committed almost US$900 million in funding approved for nuclear projects in a bid to reduce its reliance on coal.

The TVA's budget for fiscal year 2011 includes $248 million for work at the Bellefonte nuclear site in North Alabama to maintain the option for future power generation and $635 million for construction of the Watts Bar 2 nuclear facility in East Tennessee, scheduled for completion in 2013.

Currently, TVA operates 29 hydroelectric dams, 11 coal-fired power plants, three nuclear plants and 11 natural gas-fired power facilities.