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Coal cheapest way to produce power

Electricity from coal is the cheapest energy to produce at ¥7.8 per kilowatt-hour, followed by nuclear power at ¥8, according to provisional calculations by a private research institute.

The calculations were prepared by the Research Institute of Innovative Technology for the Earth, a private organization that examines energy-related issues. The institute is led by President Yoichi Kaya, a professor emeritus at the University of Tokyo.

Even after such expenses as costs related to accident compensation were factored in, the production cost of electricity through nuclear power only rose to ¥8.4 per kilowatt-hour, the institute said.

In contrast, the production cost of electricity from renewable energy sources was comparatively high. Large mega solar power facilities were said to generate electricity at ¥30.6 per kilowatt-hour, while electricity from wind power cost ¥21.2 per kilowatt-hour.

Mega solar power was purchased at ¥36 per kilowatt-hour, not including tax, in fiscal 2013, which would give producers a profit of about ¥6 per kilowatt-hour. The institute said some renewable energy producers have been gleaning excessive profits while users have borne the financial burden.

Expenses including the building and maintenance of plants were factored into the costs of different types of energy. In the case of nuclear power, such expenses as the processing of spent fuel rods were also included.

The central government made provisional calculations on the cost of different types of energy after the 2011 Great East Japan Earthquake, using data from around 2010.

The calculations showed that electricity from coal cost ¥9.5 per kilowatt-hour to generate, and nuclear power ¥8.9. Mega solar electricity was calculated at ¥30.1 to ¥45.8 per kilowatt-hour, and electricity from wind power was seen as costing ¥9.9 to ¥17.3 to produce.

The government plans to carry out new provisional calculations soon, using the latest data.

Source: The Yomiuri Shimbun/the-japan-news.com