The FINANCIAL — German utility RWE AG won't build any new nuclear plants and also doesn't plan to start construction of new fossil-fueled power plants in the foreseeable future, the company's designated chief executive told journalists last week.
While the halt on new gas- and coal-fired power plants is temporary until there is more clarity on the regulatory framework, Peter Terium–who will take over as CEO of Germany's second largest utility by market value in July–said the company's decision not to build new nuclear reactors is permanent and due to the associated high financial risk.
According to Borsa Italiana – London Stock Exchange Group, the decision comes after Germany last year accelerated its planned exit from nuclear power generation in the wake of the Fukushima reactor accidents, which forced RWE and its peers to shut atomic plants earlier than planned. The nuclear policy shift by the German government had put considerable financial strain on the operators of nuclear plants, prompting billions of euros in write-downs and increased provisions for the earlier-than-expected decommissioning of the plants.
RWE operates nuclear reactors in Germany and owns a stake in the only atomic power plant in the Netherlands.
It had also planned to jointly build new reactors in the U.K. together with its German peer E.ON AG. However, the companies said in late March that they have decided to sell Horizon Nuclear Power, their joint venture.
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