German climate goals tied to nuclear power: lobby

BERLIN (Reuters) - German energy group BDEW on Wednesday called for an extension of the country's nuclear reactor lifespan, stressing the role of the carbon free technology in helping to meet national climate reduction goals.

Germany is due to present a national energy strategy by late August or early September that will map out steps for reversing a former government's program to end nuclear power by 2021.

If the lifespans of the 17 reactors, which contribute just over 20 percent of Germany's electricity, are extended, the country could save between 70 million and 90 million metric tons of carbon dioxide (CO2) emissions per year up to 2030, BDEW president Rolf Martin Schmitz said at the group's annual meeting.

"If life extensions take place, power producers can cut CO2 emissions by between 30 and 50 percent by the year 2020 compared with 1990 levels," he said.

"But if the nuclear exit program goes ahead (which stipulates the 17 plants gradually shut over the next 10 years), the CO2 reduction will only be between 15 and 35 percent."

This scenario would make it impossible to reach national CO2 reduction goals for 2020, he said.

Germany in 2009 emitted 765 million metric tons of CO2.

BDEW, which represents 1,800 power and gas firms, has recently worked out an internal compromise to support longer life cycles even if some of its members that operate costly heat-and-power plants will suffer from cheaper nuclear competition over the longer term.

Schmitz said that permanent nuclear capacity would have the added advantage of offering 8,000 megawatts (MW) of balancing supply to offset expanding but volatile wind and solar energy.

Germany's has an installed wind capacity of 27,000 MW, but the utilization on a single day can vary by 12,000 MW.

Schmitz also said that investors in new energy distribution grids needed better prices, quicker approval, and acceptance.

BDEW has calculated that 40 billion euros ($48.94 billion) of investments in power and gas grids are needed up to 2020 to transport renewable energy to consumption centers.

But, of the 850 kilometers of new power lines planned since 2005 only 90 km have materialized.

BDEW Executive Director Hildegard Mueller said: "It often comes down to regional egotism and the responsibility for the overall system is neglected."

(Reporting by Vera Eckert; Editing by Alison Birrane)