Japan’s utilities are again stepping up plans to increase electricity output from coal and natural gas to replace lost nuclear power, with a prolonged shutdown of reactors continuing and a rising prospect that many units may not come back online. This week Tokyo Electric Power Co 9501.T, operator of the wrecked Fukushima nuclear plant, and other regional monopolies are planning to add 11,000 megawatts (MW) of gas- and coal-fired electrical capacity, according to company announcements and media reports. The difference this time is that the utilities will seek to contract the building of generators to other companies because their finances have been strained by the high-cost fossil fuels needed to replace nuclear units. Three years after the Fukushima nuclear crisis all of Japan’s 48 operable reactors remain shut, with no restarts scheduled. “Given the current unwillingness of the government to have stronger support for nuclear power they have to be prepared for the future replacement,” said Tatsujiro Suzuki, a vice chairman of the Japan Atomic Energy Commision, who is stepping down on Monday. Opposition within the ranks of the ruling Liberal Democratic Party and its coalition partner New Komeito has held up approval of a basic energy framework draft that defines nuclear power as an important source of energy. Media reports this week said targets for renewable energy had been inserted into the plan at the insistence of New Komeito, which is opposed to nuclear power. Japan’s nine nuclear operators have been forced to restart ageing and mothballed thermal power stations, and delay mandatory maintenance on others to meet seasonal demand spikes, resulting in soaring fuel costs. Japan now derives about 90 percent of its electricity from fossil fuel-fired power, which pushed imports of liquefied natural gas (LNG) and thermal coal to a record high last year. A massive earthquake and tsunami in March 2011 hit the Fukushima nuclear power station north of Tokyo, causing three reactor meltdowns and forcing the evacuation of 160,000.
NEW POWER PLANTS
Most of the new construction plans are for so-called “base-load” coal-fired plants, raising concerns about air pollution, though the utilities are only allowed to use technologies rated as the best at limiting carbon dioxide emissions. Under industry ministry rules in force since 2012, the main monopolies are in general required to hold competitive auctions for any new plants that start operations from April 2019 to reduce costs. The monopolies can bid for the plants themselves or in alliance with other companies. In some cases, the monopolies can bypass the auctions but will need to pass government screening to ensure costs have been kept at a minimum. Last year’s auction for 2.6 gigawatts of coal-fired plants only attracted bids for 680 MW. The following outlines the plans for new capacity in megawatts. Fuel type is from company announcements, media reports or Reuters analysis based on utilization rates.
Company Plant Size Ops Start Fuel Tender
Hokkaido Ishikariwan Shinko No.2 569.4 12/2021 Gas n/a
Hokkaido Ishikariwan Shinko No.3 569.4 12/2028 Gas n/a
Tohoku Noshiro No.3 600 2020-2022 Coal 2014
Tohoku Joetsu No.1 600 2023-2024 Gas 2014
Tepco n/ a 6000 Not set
Kansai n/a 1500 2021-2024 Coal 2014/15
Chubu n/a 1000 2022-23 n/a 2014/15
Chugoku Misumi No.2 400 after 2027 Coal n/a
Kyushu Matsuura No.2 1000 By 6/2021 Coal 2014/15
Kyushu Toyotama No.6 8 By 6/2018 Diesel 2014/15
Source: Thomson Reuters