CDU PARLIAMENTARIANS CONSIDER FUTURE ENERGY

UNCLAS BERLIN 000848 SENSITIVE SIPDIS STATE FOR EUR/CE PETER SCHROEDER E.O. 12958: N/A TAGS: ECON SENV EIND ENRG PGOV KGHG TRGY GM SUBJECT: CDU PARLIAMENTARIANS CONSIDER FUTURE ENERGY TECHNOLOGIES REF: A. MUNICH 162 ¶B. HAMBURG 15 ¶1. (SBU) SUMMARY: At a symposium on future technologies, the CDU/CSU parliamentary bloc outlined its energy policy priorities for the 2009 election year. Support for solar and nuclear energy and questions about the future of coal power were voiced. The symposium, held on June 30 in Berlin and hosted by the CDU aligned Konrad Adenauer Foundation, was attended by a small audience of representatives from the Federal States, universities, business community, and scientific institutions. Speakers of note at the symposium included Katherina Reiche, Deputy Chairwoman of the Christian Democratic Union parliamentary bloc (CDU/CSU); Prof. Bernhard Hoffschmidt, Director of the Solar Institute in Juelich; and Dr. Wilhelm Kuckshinrichs, Deputy Director of the STE Research Institute Juelich. END SUMMARY. CCS Questions Jeopardizing Future for Clean Coal -------------- --- ¶2. (SBU) The symposium speakers asserted support for future clean coal energy production, but cautioned that Germany is losing precious time with the recent failure to get legislation passed establishing a legal framework on Carbon Capture and Storage (CCS). Although supportive of the coal industry, both Reiche and Dr. Kuckshinrichs admitted that questions regarding the efficiency of coal power plants utilizing CCS have made the issue more contentious of late and emphasized the need to gain public acceptance of CCS as a way forward. (COMMENT: EU legislation of CCS was passed at the end of 2008 and intended to be incorporated into domestic law by June 2009, but the legislation failed in the Bundestag. END COMMENT) Voicing disappointment over the law,s failure, Reiche blamed the "anti-coal fraction" within the Social Democratic Party of Germany (SPD) for shooting the measure down. Dr. Kuckshinrichs said CCS is expected to decrease efficiency of coal plants by around 10 percent and he opined that associated installation and operating costs are so high that the price of carbon permits would need to double to break even. Solar Technology Draws Political Interest -------------- ¶3. (SBU) Reiche commented that Desertec (ref A),a proposed half trillion dollar project to harvest North African solar energy to supply Europe with electrical power, is promising, future-oriented, and worthy of funding. Prof. Hoffschmidt said he supported Desertec technology in theory, but cautioned that the enormous amount of funding required is the biggest challenge. Hoffschmidt showcased a German pilot plant near Juelich (North Rhine-Westphalia) as a technology demonsrator that uses a tower solar thermal concentrator configuration to generate up to 1.5 MW of power. He claimed this technology is ready for mass production, but cautioned that research is still needed to realize full-scale commercialization. ¶4. (SBU) Hoffschmidt pointed out that the core ideas of Desertec are already becoming reality, referring to a German-Algerian cooperative solar effort in Northern Africa which involves the construction of a five mega-Watt CSP plant. Investment in the system began on April 15, 2009. Hoffschmidt emphasized that Germany is the world leader in solar technology and called for further investment in research to ensure that the country maintains its leadership position. In addition, Hoffschmidt warned that Germany faces a severe shortage of qualified engineers, which may hinder technological development. The CDU Wants to Reset Germany on the Nuclear Path -------------- -------------- ¶5. (SBU) Reiche reaffirmed the CDU,s belief that nuclear energy can and should be relied upon to meet Germany,s increasing energy requirements and Kyoto targets. She is hopeful that legislation will settle certain unsolved issues, such as the disposal of nuclear waste, and within the year smooth the way for investment in nuclear energy. She observed that nations such as China and the USA are planning additional nuclear reactors, and held that Germany,s moratorium on nuclear energy is eroding its international commercial competitiveness in this field. Pollard