electricity price through a surcharge by FIT puts a financial burden on end-users. It
should be carefully considered that the massive integration of renewables poses a
lot of challenges in technical and financial aspects, derived from their output
intermittency and higher generation costs. Technical efforts are required to stabilize
the power supply system through flexible resources such as rechargeable battery,
back-up generators and demand response, and massive investments to enhance
power grid capability will be indispensable. Meanwhile, if the tariff is set at a lower
level, the installation of renewable power will not be successfully promoted. Paying
cautious attention on the status of electricity market such as electricity price, it is
important to promote renewable energy and improve the grid capability for the
sustainable development of energy supply.
Increased dependence on fossil fuel supply and the associated growing import
payments for the fossil fuels have eventually resulted in higher power generation
cost and soaring electricity retail price. The increase in import payments for fossil
fuel for power generation is projected to still cause an increase in average unit costs
by 3.0 yen/kWh in FY 2015 from their FY 2010 levels [13]. Higher power generation cost has serious economic impact, causing more than 30% escalation in
electricity bill for the average household in Tokyo after the Fukushima [14].
Actually, Kansai Electric Power Company, around half of which power generation
mix is derived from nuclear energy, submitted applications for approval to the
government about a 10.23% increase in power rates for the customers from
FY2015. In those surroundings, rising electricity bills will pose a serious challenge
for Japanese economy. Particularly for Japanese manufacturing sectors which come
up against challenges in their international competitiveness, a further energy cost
escalation is considered to be economically harmful. Since electricity price in Japan
Fig. 6 Assessment of power generation cost in Japan [12]
Considering Nuclear Accident …
103
should be carefully considered that the massive integration of renewables poses a
lot of challenges in technical and financial aspects, derived from their output
intermittency and higher generation costs. Technical efforts are required to stabilize
the power supply system through flexible resources such as rechargeable battery,
back-up generators and demand response, and massive investments to enhance
power grid capability will be indispensable. Meanwhile, if the tariff is set at a lower
level, the installation of renewable power will not be successfully promoted. Paying
cautious attention on the status of electricity market such as electricity price, it is
important to promote renewable energy and improve the grid capability for the
sustainable development of energy supply.
Increased dependence on fossil fuel supply and the associated growing import
payments for the fossil fuels have eventually resulted in higher power generation
cost and soaring electricity retail price. The increase in import payments for fossil
fuel for power generation is projected to still cause an increase in average unit costs
by 3.0 yen/kWh in FY 2015 from their FY 2010 levels [13]. Higher power generation cost has serious economic impact, causing more than 30% escalation in
electricity bill for the average household in Tokyo after the Fukushima [14].
Actually, Kansai Electric Power Company, around half of which power generation
mix is derived from nuclear energy, submitted applications for approval to the
government about a 10.23% increase in power rates for the customers from
FY2015. In those surroundings, rising electricity bills will pose a serious challenge
for Japanese economy. Particularly for Japanese manufacturing sectors which come
up against challenges in their international competitiveness, a further energy cost
escalation is considered to be economically harmful. Since electricity price in Japan
Fig. 6 Assessment of power generation cost in Japan [12]
Considering Nuclear Accident …
103