Germany compensates utilities $2.9 Billion for nuclear exit

Germany agreed to compensate Vatenfall, RWE, EnBw and E.ON 2.4 billion euros ($2.9 billion) for losses suffered following the country’s decision to phase out nuclear power after the Fukushima Dai-Ichi meltdowns.

The deal ends the decade-long battle between the government and Germany’s biggest energy companies. It comes in an election year when the green credentials of Europe’s largest economy will be a key topic among voters. Abandoning nuclear power will eliminate one of Germany’s top sources of emissions-free electricity that is available around the clock.

Friday’s settlement underscores the long-lasting economic impacts of the Fukushima accident even outside of Japan. Just months before the 2011 disaster, Germany’s government had agreed to extend the operating lifetimes of nuclear plants. But the government abruptly reversed course after the accident and decided to end nuclear power generation by the end of 2022 at the latest.