Germany's EnBW mulls closing nuclear plant - paper

FRANKFURT, Sept 11 (Reuters) - EnBW (EBKG.DE) is reviewing whether to close the Neckarwestheim I nuclear power plant due to new taxes and upgrade costs, Germany's Stuttgarter Zeitung quoted EnBW's chief executive as saying in an interview.

Hans-Peter Villis told the paper the costs of upgrading the Neckarwestheim I plant, coupled with a nuclear fuel tax, could make it too expensive to continue operating the plant.

Overall the tax measures set to be introduced after a deal between utilities and the German government earlier this month will lead to a drop in pretax profit of up to 40 percent, Villis told Stuttgarter Zeitung.

"We need to review whether the plant can remain on the grid," Villis told the paper.

The nuclear fuel tax will cost EnBW 440 million euros a year, and payments to a fund to promote renewable energy will cost the company 65 million euros for the next two years and 43 million euros for four years after that, Villis told the paper.

Besides Energie Baden-Wuerttemberg (EnBW) (EBKG.DE), E.On (EONGn.DE) and RWE (RWEG.DE), the German unit of Swedish utility Vattenfall [VATN.UL], also operate nuclear power plants in Germany. [ID:nLDE6870LM]

Germany's energy companies are set to profit from a decision by the government to extend the operating lifespan of 17 nuclear power plants, giving reactors an extension of about 12 years on average. [ID:nLDE6840EZ] (Reporting by Edward Taylor; Editing by Hugh Lawson; +49 69 7565 1187; edward.taylor@thomsonreuters.com; edward.taylor.thomsonreuters.com@reuters.net)