Japan plans to start up 14 new gas and coal-fired power plants by the end of 2014, allowing a switch away from pricey oil, as Tokyo struggles with a shutdown of nuclear reactors and energy imports drive a record trade deficit.
Regional power monopolies will construct 12 gas-fired units next year, while two new coal power plants will be completed by December 2013, according to a Reuters survey of utilities.
The new power plants will buy liquefied natural gas (LNG) and coal to scale back on the use of expensive crude and fuel oil plants. They will also give Japan a bigger buffer to prevent future power outages when generation plants go offline.
Expanding gas-fired generation is the only viable large-scale option in a nuclear-free Japan to power its industrial and commercial sector and keep electricity prices low enough for businesses to stay competitive globally.
Gas-fired units next year will add 5.2 gigawatts of capacity.The IEA estimates plants with such power output would cost about $4.5 billion.
The two coal-fired units due to start commercial operations in December will add 1.6 gigawatts online from the current 39 gigawatts. Building two plants that produce 1.6 gigawatts would cost about $2.4 billion, according to the IEA.
Source:Reuters
