If you don't already think nuclear power is a form of alternative energy, then you may wonder what all the fuss is about…

In a move that makes my eyes boggle, the largest nuclear reactor-maker in the world just ponied up $1 billion for a German renewable energy company.

Let's look at the players…

Areva (CIE:Paris) (ARVCF.PK), the French nuclear reactor manufacturer has proposed a deal worth $1 billion to buy Repower (RPW:Frankfurt) (RPWSF.PK), the German wind power company.

The “unsolicited deal” offered 105 euros per share, a 17% premium from Friday's close, says BBC News.

Repower is up more than 20% on the news today.

But why would Areva want to buy Repower in the first place? The European Union may have just the answer to that.

The EU has put into place some very aggressive renewable energy standards. It wants to have 20% of its energy generation coming from renewable energy resources by 2010.

One of the ways some European countries are already achieving 20% or more is through the use of offshore wind farms.

Look at Denmark. Its wind energy accounts for 20% of its electricity generation, and the country's building an offshore wind farm intending to boost that percentage to nearly 50%.

The European Wind Energy Association estimates that France's offshore wind potential is second only to the United Kingdom, and yet, France is lagging behind other European countries.

I think that's why Areva bought Repower.

As the world's largest nuclear reactor manufacturer in a country that generated more than 75% of its electricity from nuclear power, I think Areva's looking to dominate a second industry.

And with its global connections, Areva will have access to wind energy markets around the world… not to mention its European neighbors.

This acquisition is pricey, and Areva's been upfront with the cost. A BBC News release said, “Areva's move comes after it said its operating income would be considerably lower for 2006 than 2005, but that it would easily remain well in the black.'”

We'll see how well Areva puts Repower's technology to use. Who knows... it could be the next General Electric (GE:NYSE) in the making.

That's a stretch, but it certainly reminds me of how GE has been expanding over the past couple years.