Japan's cabinet approves U-turn on plan to phase out nuclear plants

Japan's cabinet yesterday approved a reversal of the previous government's plans to gradually mothball nuclear power plants, a move likely to be unpopular with a wary public following the 2011 Fukushima disaster.

But the new energy policy may be too little, too late for Japan's moribund atomic industry, which is floundering under the weight of estimated losses of almost US$50 billion that last week forced two utilities to ask the government for capital injections.

Plant operators have had to spend almost US$90 billion on replacement fossil fuels, and domestic media say they have also spent an estimated 1.6 trillion yen (HK$122 billion) on nuclear plant upgrades to meet new safety guidelines.

A recent analysis shows as many as two-thirds of the country's 48 idled nuclear reactors may have to be left closed because of the high cost of further upgrades, local opposition or seismic risks.

The plan defines nuclear power as an "important baseload power source", meaning it can feed constant power to the grid to meet minimum requirements.

However, the policy document did not specify the share of nuclear in the nation's energy mix.

"Given the slim realistic prospects for a major nuclear share, the challenge will be flexibility and the whole baseload concept flies out of the window," said Mycle Schneider, a Paris-based independent energy consultant.