RWE's decision to exit the nuclear business, and go more significantly in renewables, received much press. An interview in Der Spiegel with new RWE CEO Peter Terium, provides a more nuanced perspective.
"SPIEGEL: Now RWE wants to invest in solar. Your predecessor Grossmann still rails that generating solar electricity in Germany makes about as much sense as "growing pineapples in Alaska." Why are you entering the pineapple farming business?
Terium: Because the government subsidizes growing pineapples in Germany."
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Terium: The impact of current political decisions and market changes extends far beyond Germany. The large amounts of wind and solar energy that are being fed into the grid, together with the economic crisis, have led to a sharp decline in electricity prices.SPIEGEL: But consumers in Germany now have to pay more for their electricity.Terium: Yes, because government levies for new, renewable forms of energy, electricity grids and storage facilities drive up the price of electricity. The price we receive for generating power is currently so low that it's simply irresponsible to build an expensive nuclear power plant in Europe.Read the interview at SPIEGEL ONLINE:
I loved this quote to a question on coal plants: "Our coal-fired power plants are capable of producing the baseload electricity urgently needed by industry, and at acceptable prices. " So coal-fired plants are now "baseload". That will shock the ENGOs!
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