FACTBOX-German parties' plans on energy policy

BERLIN, Oct 23 - German Chancellor Angela Merkel's conservatives and the pro-business Free Democrats hope to bridge outstanding differences on policy issues by Saturday, allowing a new centre-right government to take office next week.

Below is what has been agreed on energy policy, according to a draft coalition agreement seen by Reuters and news from the latest talks:

NUCLEAR POWER

* The parties plan to extend the lives of Germany's 17 nuclear plants, subject to safety requirements being met. A time frame is still unclear.

* A sizeable portion of the additional profits arising from the extension of life-spans is due to be re-invested in renewable energy research and marketing.

* The incoming coalition is also expected to uphold an existing ban on building new nuclear power stations.

* The two plan to end a moratorium on exploring the Gorleben site in Lower Saxony as a repository for nuclear waste.

COAL

* The coalition aims to press for the construction of new energy-efficient coal-powered stations, and to promote carbon capture and storage technology.

RENEWABLES

* The two sides plan to increase use of renewable energy, with greater emphasis placed on biomass.

* They will review financial incentives for renewables. The parties aim to explore whether support for photovoltaic systems, which turn sunlight into power, can be cut.

* The two plan to introduce an amendment to Germany's Renewable Energy Act, effective from 2012, focusing on the competitiveness of each respective energy sector.

* They also aim to establish closer cooperation with North Africa on solar and wind energy projects.

GLOBAL WARMING

* Emissions trading is seen as a key approach to battling climate change, and the parties want its use to be extended and integrated internationally. Air and maritime traffic should be gradually included in the international trading system.

* Energy-intensive companies should continue to be exempted from contributing to emission trading targets.

* The parties have committed to a goal of restricting global warming to two degrees and cutting greenhouse gas emissions by 40 percent of 1990 levels by the end of the next decade.

* The coalition is also willing to provide more help to developing countries on tackling climate change.