Japan: Nuclear Power Price Guarantees Possible

Posted by Joseph Keefe
Thursday, August 21, 2014

Japan will consider guaranteeing prices for electricity generated by nuclear plants to help the country's struggling utilities, which have lost about $35 billion in the three years since the Fukushima disaster saddled them with extra costs.

Japan's nuclear plants are in shutdown with no schedule for restarts after the meltdown at Fukushima in 2011, leading the country's utilities to turn to expensive fossil fuel imports.

But even if they can get their reactors running they face higher costs to meet new safety requirements just as the government is pushing through plans to allow more competition in the industry. They also face possible costs for decommissioning older units that are too costly to upgrade.

The move was floated by a trade ministry panel as an example of supporting the nuclear industry financially like Britain's "Contracts for Difference" scheme, which guarantees nuclear operators fixed rates for power.

The panel, which is in charge of making detailed policies in line with the government's basic energy plan, did not give a schedule for finalising the scheme.

Propping up nuclear power, promoted for decades by Japan's ruling Liberal Democratic Party as cheap, safe and reliable, is likely to be at odds with public sentiment which has turned against atomic energy since Fukushima.

If the market price of electricity falls below a pre-set level, consumers would pay the gap to the utilities, according to the British example discussed on Thursday at the panel.

On the other hand, should the market price rise above the pre-set price, operators would pay back the difference to protect the consumers from overpaying.

Japan in 2012 introduced so-called feed-in tariffs that guarantee higher prices for renewable energy, which sparked a wave of investments, particularly for solar power, but it still contributes to a fraction of electricity needs.

Utilities have been forced to increase fossil fuel imports, especially liquefied natural gas and coal, to generate electricity, paying about 3.6 trillion yen ($34.68 billion) extra every year since the crisis.

All of Japan's 48 nuclear reactors have been shut since last September. Two have received initial clearance to restart but are unlikely to be reactivated before next year.


Reporting by Kentaro Hamada
 

Maritime Reporter February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

ClassNK's Structural Rules for Bulkers & Tankers

The Nippon Kaiji Kyokai (ClassNK) has announced the establishment of its “Common Structural Rules for Bulk Carriers and Oil Tanker” (Rules for the Survey and

Long Beach Harbor Tour Season

Long Beach Port is once again giving tourists opportunity to enjoy a rare view of port operations on a free Port of Long Beach harbor tour. The organizers are

Mariners Transiting Delaware River Cautioned

The Captain of the Port (COTP) Delaware Bay is notifying mariners that Upper Delaware River lighted buoy 33 (LLNR 3875) and Upper Delaware River lighted buoy

Contracts

Chassis Pools for Port of Long Beach

Three companies that own the vast majority of chassis serving the San Pedro Bay ports are on track to activate a “gray chassis fleet” of truck-trailers on March 1,

Davie Building LNG-powered Ferries

Canadian shipbuilder Davie held a keel laying ceremony for MV Armand-Imbeau II, marking the beginning of the hull assembly for this first of two sisterships under

Lithuania Looks to U.S. for Gas

Lithuanian liquefied natural gas (LNG) importer Litgas has signed a preliminary agreement with a U.S. supplier, looking to lessen the Baltic nation's dependence on Russia.

Finance

Indian Ports to Set Sail on Corporatization

Indian Finance Minister Arun Jaitley said in Union Budget 2015 that government-run ports in India will be encouraged to corporatize and become companies under the Companies Act.

Zvezda Shipyard Comes Up Despite Western Sanctions

German and Finnish partners continue to build Russia’s Far Eastern “Zvezda” shipyard for Arctic oil exploration ships, in spite of Western sanctions, reports Sputnik.

ADB Okays $30mln for Pak LNG Terminal

The Asian Development Bank (ADB) has approved a $30 million project loan to Engro Elengy Terminal Private Limited, a special purpose company which will build Pakistan’s

Environmental

Mariners Transiting Delaware River Cautioned

The Captain of the Port (COTP) Delaware Bay is notifying mariners that Upper Delaware River lighted buoy 33 (LLNR 3875) and Upper Delaware River lighted buoy

Ocean Cycles Pause Global Warming

The natural oscillations in the climate, which resulted in cooler Pacific Ocean waters, were partially behind the controversial global warming "pause", say researchers.

Satellite Images Reveal Ocean Acidification

Ocean acidification can now be seen from space, highlighting an ongoing danger of climate change and revealing the regions most at risk.   Pioneering techniques

Energy

GasLog Post 4Q 2014 Results

GasLog Ltd. and its subsidiaries an international owner, operator and manager of liquefied natural gas carriers, today reported its unaudited financial results for the quarter ended December 31,

Petrobras Downgrade Shakes Market

Moody's shocked bond investors this week with a surprise two-notch downgrade that put Brazilian oil company Petrobras in junk territory. The move was seen by some investors as overly assertive,

Brightoil Reports Steady Growth in Interim Results

Brightoil Petroleum (Holdings) Limited announced its interim results for the six months ended December 31, 2014, reporting steady growth over the period.   During the period,

News

ClassNK's Structural Rules for Bulkers & Tankers

The Nippon Kaiji Kyokai (ClassNK) has announced the establishment of its “Common Structural Rules for Bulk Carriers and Oil Tanker” (Rules for the Survey and

Long Beach Harbor Tour Season

Long Beach Port is once again giving tourists opportunity to enjoy a rare view of port operations on a free Port of Long Beach harbor tour. The organizers are

Mariners Transiting Delaware River Cautioned

The Captain of the Port (COTP) Delaware Bay is notifying mariners that Upper Delaware River lighted buoy 33 (LLNR 3875) and Upper Delaware River lighted buoy

People in the News

ClassNK's Structural Rules for Bulkers & Tankers

The Nippon Kaiji Kyokai (ClassNK) has announced the establishment of its “Common Structural Rules for Bulk Carriers and Oil Tanker” (Rules for the Survey and

Long Beach Harbor Tour Season

Long Beach Port is once again giving tourists opportunity to enjoy a rare view of port operations on a free Port of Long Beach harbor tour. The organizers are

Mariners Transiting Delaware River Cautioned

The Captain of the Port (COTP) Delaware Bay is notifying mariners that Upper Delaware River lighted buoy 33 (LLNR 3875) and Upper Delaware River lighted buoy

Government Update

Indian Ports to Set Sail on Corporatization

Indian Finance Minister Arun Jaitley said in Union Budget 2015 that government-run ports in India will be encouraged to corporatize and become companies under the Companies Act.

Crimea Nationalizes Cargo Port in Kerch

The Crimean State Council nationalized the Kerch-based cargo port Kamysh-Burun belonging to the Ukrainian financial-industrial group Altcom.   According to Crimean Parliament,

LA, Long Beach Ports Cooperation Approved

Federal regulators approve expanded working pact for Port of Long Beach and Port of Los Angeles to cooperate on congestion relief   The ports of Long Beach and

 
 
Maritime Careers / Shipboard Positions Maritime Standards Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2381 sec (4 req/sec)