Germany will extend the life of its 17 nuclear reactors by 12 years on average, Environment Minister Norbert Roettgen announced yesterday after marathon talks on the controversial issue.

The decision came after 12 hours of talks between senior politicians and forms a key component of the future energy policy of Europe’s largest economy.

The lives of older plants will be extended by eight years and those of newer ones by 14 years, Mr Roettgen said, adding that Germany would spend €3 billion annually to develop renewable energy.

Chancellor Angela Merkel’s predecessor Gerhard Schroeder had decided to mothball the reactors by around 2020.

Mrs Merkel wanted to postpone the shutdown as part of a new “energy concept” for the country due to go before her cabinet on September 28.

The announcement immediately met with mixed reactions.

“We have together found a way to take Germany forward,” said Economy Minister Rainer Bruederle.

But the decision was criticised by Greenpeace and other environmental groups as well as Germany’s Green Party.

Mrs Merkel calls the extension a “bridge” until renewable sources of energy such as wind and solar power can produce more of Germany’s power as it seeks to reduce dependence on coal.

A debate has raged in the country and in government over how long to extend and what price to exact from the energy industry, which stands to benefit from the move.

Support for Mrs Merkel’s coalition has tumbled in recent opinion polls and surveys suggested a majority of Germans opposed the idea of postponing the date that the country goes nuclear-free.

The Chancellor, a former environment minister herself, had earlier hinted that her preference was for an extension of 10-15 years, saying this is what is “technically reasonable”.

But not everyone in her squabbling coalition agreed.

Mr Roettgen, from Mrs Merkel’s own conservative Christian Democrats, said he wanted to limit the extension to eight years.

But Mr Bruederle, from the pro-business Free Democrats, Mrs Merkel’s minority coalition partners, wanted an extension of up to 20 years.