The real cost of nuclear power may be up to two times current estimates by the electricity industry, according to government-commissioned researchers.
The real cost of nuclear power may be up to two times current estimates by the electricity industry, according to government-commissioned researchers.
Two reports submitted to the Japan Atomic Energy Commission on Sept. 13 show that, while nuclear power is still cheaper or similar in cost to other forms of electricity generation, increased power station building costs and the fact that many of Japan's nuclear reactors are idle have significantly increased the bill.
Existing industry estimates put the average cost of nuclear power at between 5 and 6 yen ($0.065 and $0.078) per kilowatt-hour (kWh).
But Keigo Akimoto, the leader of the Systems Analysis Group of the Research Institute of Innovative Technology for the Earth, told the commission that nuclear power generation costs were actually 8.1 to 12.5 yen per kWh, based on 2005 data.
Akimoto's report assumed that only 60-85 percent of all nuclear reactors in Japan would be operating at one time. That is more in line with the actual number of reactors in use, even before the crisis at the Fukushima No. 1 nuclear power plant, than the industry's assumptions.
Yuji Matsuo, a senior economist of the Institute of Energy Economics, Japan, estimated the average cost of nuclear power between fiscal 2006 and 2010 period at 7.2 yen. He said thermal power cost about 10.2 yen per kWh in the same period.
The Federation of Electric Power Companies of Japan published a nuclear power generation cost of 5.3 yen per kWh in 2003, saying that natural gas generation cost 6.2 yen per kWh. The federation said the cost of nuclear power was "comparable" to other power sources.
However, that estimate assumed 80 percent of all nuclear reactors in Japan would be operating. Plant operation rates declined to 67.3 percent in fiscal 2010 because of an increase in operational suspensions at plants because of minor incidents.
"Nuclear power costs are still relatively low, but the power industry has only published the lower reaches of the cost range. The costs have a much wider range (than power companies have shown)," Akimoto said.
Costs may rise further because of the cost of extra safety measures implemented following the Fukushima nuclear crisis.