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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Samil PwC Okays Hyundai's Management Improvement Plan

Hyundai Heavy Industries (HHI) is notified by Samil PwC, a local member of the global accounting firm PwC, that its 3.5 trillion won worth management improvement

Volvo Penta Names Brown Commercial Marine Sales Director

Dave Brown has joined Volvo Penta of the Americas as director of commercial marine sales.   In this new position, Brown will provide strategic and administrative

Romica Manufacturer Secures DNV GL Approval

U.K. winch maker Romica said it is to “redouble its exports drive” after its Romania-based manufacturing partner successfully acquired accreditation with DNV GL.

Contracts

Baltic Index Falls on Weak Freight Rates

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Monday due to weaker rates across all segments, except handysizes.

As Market Sours, LPG Tankers Anchor off Singapore

Record U.S. LPG exports to Asia flip market into a glut. Last year, liquefied petroleum gas (LPG) supplied to Asia was being snapped up by petrochemical makers.

Eni Cancels Vessel Deal with Viking Supply Ships

Viking Supply Ships A/S (VSS) has received an early termination notice of the contract for the Ice-class 1A AHTS “Njord Viking”. The vessel has been working for

Finance

Will UK Maritime Traffic Rise or Fall on Brexit?

UK container traffic will see more muted growth than expected a few months ago, at least in the short term, says Drewry.   Patrick Walters, Peel Ports’ Group Commercial Director,

Samil PwC Okays Hyundai's Management Improvement Plan

Hyundai Heavy Industries (HHI) is notified by Samil PwC, a local member of the global accounting firm PwC, that its 3.5 trillion won worth management improvement

India Govt Subsidy for Ship Building Industry

Maritime Agenda 2010-20 has inter-alia set a target to increase percentage share of India to 5% in global ship building and 10% share in global ship repair for India by 2020.

Environmental

Two DNV GL Approvals for GTT Training Software

GTT Training, a GTT subsidiary dedicated to training liquefied natural gas (LNG) professionals and to the development of associated simulation tools, has obtained

How to Avoid Claims for Self-cooking Cargo

North P&I Club has advised its members to be extra vigilant during loading and transport of soya beans to ensure they do not get blamed for cargoes that start ‘cooking’ at sea.

China sets up South China Sea environment protection fund

China has set up a 15 million yuan ($2.25 million) environmental protection fund for the South China Sea having already spent double that in the past four years,

Energy

Los Angeles Pushes for Valero Terminal Improvements

The Port of Los Angeles has released an Initial Study/Notice of Preparation (IS/NOP) — the first step in the Environmental Impact Report (EIR) process — for a Marine

Canada Seek to contain Oil Spill

Authorities are building a new containment boom to fight an oil spill in a major western Canadian river, officials said on Saturday, after the spill breached a

Ecuador Pays $112 mln Award to Chevron

Ecuador has paid $112 million to energy company Chevron Corp over a four-decade-old contract dispute, even though it remains in disagreement, the head of the central bank has said.

Fuels & Lubes

As Market Sours, LPG Tankers Anchor off Singapore

Record U.S. LPG exports to Asia flip market into a glut. Last year, liquefied petroleum gas (LPG) supplied to Asia was being snapped up by petrochemical makers.

KR Boosts Operational Efficiency with Boxship Conversion

The Korean Register has announced that it has successfully completed a feasibility study for the conversion of an 8,600 teu containership into a 10,000 teu vessel.

WWL Adds Another Neo-Panamax

Themis is Wallenius Wilhelmsen Logistics’ (WWL) fourth Neo-Panamax class vessel, which means it is built for the expanded Panama Canal inaugurated June 26.   Like her sister vessels,

News

Will UK Maritime Traffic Rise or Fall on Brexit?

UK container traffic will see more muted growth than expected a few months ago, at least in the short term, says Drewry.   Patrick Walters, Peel Ports’ Group Commercial Director,

Nigeria Becomes Piracy Kidnapping Hotspot, says IMB

Despite global improvements, kidnappings are on the rise, with 44 crew captured for ransom in 2016, 24 of them in Nigeria, up from 10 in the first half of 2015.

Boeing 767 Shipped by Barge

MTS Statum completes marine towage of barge carrying Boeing 767 from Shannon Airport   Marine service provider Marine and Towage Services Group Ltd. (MTS) has

People in the News

Volvo Penta Names Brown Commercial Marine Sales Director

Dave Brown has joined Volvo Penta of the Americas as director of commercial marine sales.   In this new position, Brown will provide strategic and administrative

HII Names Leonard a Corporate Director

Capt. Joseph J. Leonard (U.S. Navy, Ret.) has joined Huntington Ingalls Industries (HII) as corporate director of customer affairs, large surface combatant program, the shipbuilder announced.

Piracy Drops to 21-year low - IMB

Piracy and armed robbery at sea has fallen to its lowest levels since 1995, despite a surge in kidnappings off West Africa, according to a new report from the International

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Salvage Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | 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: 0.1611 sec (6 req/sec)