Germany's nuclear phase-out hits financial and waste hurdles in 2023

Germany's nuclear phase-out has reached a critical stage in 2023, with the country now generating around 30% of its electricity from non-hydro renewables. The policy, reinstated in 2011 under Angela Merkel, has seen half of the nation's nuclear fleet shut down while fossil-fired electricity hit a 35-year low in 2014. Yet questions remain over funding and waste disposal as the transition accelerates. The nuclear exit began in 2002 under Chancellor Gerhard Schröder, only to be extended in 2010 by Merkel before her abrupt 2011 reversal. Though the decision appeared sudden, it drew on a decade of earlier negotiations. The 2011 phase-out was not just a policy shift but a return to a plan Merkel had previously abandoned.

Funding for decommissioning and waste disposal has become a major issue. By 2023, operators had set aside roughly €24.3 billion in the state-managed Kernkraftfonds, established in 2022. These reserves, originally held by the firms themselves, now face higher-than-expected costs due to the accelerated shutdown. Initial disbursements have already exceeded private estimates by billions.

Critics, including a Reuters editorial, have highlighted the lack of coordination, particularly around unclear waste disposal costs. The Ethics Commission tasked with assessing the phase-out focused on transition risks but did not address long-term repository funding. Meanwhile, the phase-out fund—unlike those in some other countries—was never held by the government, raising concerns about future availability.

Despite the nuclear exit, the waste problem persists. Keeping reactors online would not have solved it, but the phase-out has not provided a clear solution either. Fossil fuel use dropped as renewables grew, offsetting some of the lost nuclear capacity. Still, the financial and logistical challenges of decommissioning remain unresolved. Germany's nuclear phase-out continues to reshape its energy mix, with renewables filling much of the gap left by closed reactors. The €24.3 billion fund now under state control must cover rising decommissioning costs, while waste disposal remains an open question. As the final reactors near shutdown, the focus shifts to whether the allocated resources will be enough.