Germany's highest court will hear two days of testimony this week on whether or not the government owes three utility giants, Vattenfall, EOn and RWE, compensation for the 2011 decision to phase out the country's nuclear power plants.
It could take months for the panel of eight judges of the Constitutional Court to render a decision after hearing the case on Tuesday and Wednesday.
At issue is the concept of expropriation, specifically, whether or not the government can order viable assets to close without compensation.
EOn Chief Executive Johannes Teyssen told the court that the decision was not political. “This is not … about whether you are for or against nuclear power. The question is simply: Do we have the right, overnight, to deprive people … of their assets without compensation?” he said.
Nuclear power plants in Germany also face a situation similar to counterparts in the United States in that government subsidies for renewable power have created a glut on the market, lowering the wholesale price of electricity, in effect taking the legs out from under a massive investment in nuclear power.
The companies are seeking $21 billion as compensation. To date, the government has ordered the closure of eight of the country's oldest nuclear power plants, while nine others have been ordered to close by 2022.
The phase out date serves as a marker for political reversals. German Chancellor Angela Merkel had previously extended the nuclear power phaseout date to 2036. After the Fukushima Daiichi accident five years ago, the Merkel administration abruptly changed course, moving that date up by 14 years.
Separately, Germany faces decommissioning and cleanup costs for nuclear power, which some estimate will cost $55.5 billion.