: (eca 064): Merkel embarks on "energy tour" of Germany

Aug 18, 2010, 11:32 GMT

Berlin - Chancellor Angela Merkel embarked Wednesday on a countrywide tour of Germany's energy production sites, before the government unveils a contentious Energy Plan in coming weeks.

Over the course of four days, the chancellor is to visit 10 sites across Germany comprising coal, nuclear, wind, gas and steam, bioenergy and hydro-electric power sources.

The first stops on Merkel's trip are a wind park near the coast, in the northeastern state of Mecklenburg-Pomerania, followed by wind turbine manufacturers Nordex.

On Thursday, the chancellor is to visit the European Energy Exchange (EEX) in Leipzig. Next week's stops will include a nuclear power station and several renewable energy plants, as well as a house designed to minimise energy consumption.

The trip is designed for Merkel to form a personal view of the resources, needs and challenges of the different energy sectors.

Merkel's centre-right coalition is developing its much-delayed Energy Plan, expected to be unveiled in the coming weeks, which aims to consolidate the various laws governing energy sources.

The blueprint will likely extend nuclear runtimes beyond the current deadline, as a 'bridging technology' until renewable energy sources can provide enough power to replace nuclear reactors.

Under an agreement signed by a previous Green-Social Democratic government, nuclear energy is supposed to be phased out in Germany by 2020. The parties, now in opposition, have reacted furiously to the centre-right suggestions.

At the same time, Merkel plans to introduce a new tax on nuclear fuel rods, which would cost energy suppliers 2.3 billion euros (3 billion dollars) annually.

The proposals have also irked Germany's nuclear industry, who have threatened in recent days to pull out of nuclear generation altogether if the fuel rod tax is introduced.

On August 26, Merkel is to visit a nuclear power station in Lingen, near the Dutch border, accompanied by the heads of Eon and RWE, two of Germany's largest nuclear providers.

The head of Eon, Johannes Teyssen, rejected accusations that they were attempting to blackmail the government by threatening to switch off nuclear power stations.

However, he told the daily Frankfurter Allgemeine that a fuel rod tax could mean that it would no longer make economic sense to run some smaller nuclear plants.

Germany is split on the issue of nuclear energy, with just over half favouring the eventual shut-down of plants.