Germany to Shelve Nuclear Power by 2022
May 30, 2011
– Comments (34) |
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WOW..... I mean I am stunned. Absolutely flabbergasted would be a more meaningful way to describe it.
Germany gets roughly 22% of its electrical output from nuclear reactors, so now it has an immediate need to replace the energy produced by those reactors in just ten years - that's not a lot of time. What's more interesting to me is how the country is going to undertake such a task and to what extent it'll turn toward solar power.
Thus far Germany has been one of the largest proponent's of solar energy and I continue to think the majority of the sector remains attractively priced, though of course some are better values than others. I'm concerned that as the EuroZone continues to fall further into the sovereign debt black hole Germany is going to have no choice but to back away from solar which is a green but expensive option compared to other options *coughcoalcough*...oh pardon my cough. In another semi-unrelated tangent, I don't think Germany's economy and debt situation is as peachy-keen as everyone else seems to think, and yes I know I'm probably drawing the ire of portefeuille who will more than likely retort with 12 charts and a barage of "hee-hee's."
On the other side of the coin, how badly is the nuclear market going to take it on the chin over the next few months. Cameco, Uranium Resources, Usec and the lot of uranium companies are going to likely be leveled because Germany is one of those nations that's influential enough for other countries to follow. I can't say that I personally cared for uranium companies from the start, but I do care for nuclear construction and consulting firms like Fluor which remains a strong watchlist candidate. Tuesday is more than likely going to be a very very rough day for uranium and nuclear consulting companies, as well as operators of nuclear reactors in the US. Likewise, expect solar to move to the upside on Tuesday.
Have I mentioned that this move totally stumps me.... I just don't see how Germany is going to meet its electrical needs with a suspect budget after 2013-2014. I'd be betting on a delay to the implementation of that shutdown if I were you.
Anyone else have any thoughts on this.... other than portefeuille who is most assuredly planning to give me third-degree paper cut with countless charts and graphs? If I was a German citizen I'd be banging my head against a wall right now.....oy!
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