Global Warming Research & Analyses
Latest estimate of power generation costs by power source, and cost-benefit analysis of alternative power sources
October, 2014
Latest estimate of power generation costs by power source, and cost-benefit analysis of alternative power sources
RITE estimated power generation costs by power source in Japan during FY2009-2010 before the Great East Japan Earthquake (estimate for the period 2005 to 2007 and future prospects). On the other hand, after the Earthquake and Fukushima Daiichi nuclear plant accident, the Japanese Government estimated power generation costs by power source.
In the light of subsequent changes in various situations, this report provides the latest estimate of power generation costs. Included in the changes in situations are the upward trend in fossil fuel prices, increasing trend of costs for improving the safety of nuclear power plant, and introduction of FIT scheme for renewables and subsequent change in renewables costs, which were taken into consideration for this study.
We have also analyzed costs and benefit in case of substituting coal power with different power, based on power generation costs above and intermittency of renewable energy.
Then we estimated cost sensitivity to discount rates to show gaps between power choice preferences in a competitive circumstances under the electric power system reform and cost-efficient power source, as well as to discuss necessity for political correction measures.
