June 2014
by Fumitaka Noguchi, Senior Analyst at DZH Financial Research
On 21 May 2014, the Fukui District Court ruled that Kansai Electric Power (9503) shall be prohibited from restarting two of its nuclear reactors due to safety concerns.
Two days later, the Chairman of the Federation of Electric Power Companies of Japan disclosed that thermal power accounted for 88.3% of Japan's electrical output for the year ended March 2014. The fuel cost for electrical power generation in Japan more than doubled since the Fukushima accident in May 2011.
Despite the Court's ruling, the Abe administration intends to pursue its policy of restarting nuclear power to obtain less expensive and stable electricity.
Japan's Electrical Output by the Type of Power Generation
(Aggregate of Ten Electric Power Companies)
Fiscal Year (FY): April to March of the following year. The total may not be 100% because of rounding.
The Fuel Cost for Electrical Power Generation in Japan
(Aggregate of Ten Electric Power Companies)
Source: the Federation of Electric Power Companies of Japan
About the Author:
Fumitaka Noguchi is a senior analyst at DZH Financial Research, Inc. in Tokyo. Mr. Noguchi spent most of his career in the field of international investment at Yasuda Mutual Life Insurance. While working at Yasuda, Mr. Noguchi was stationed in New York from 1996 to 2001 responsible for U.S. equity management. He holds an MA from the International University of Japan, 1987 and a BA from the University of Tokyo, 1982.
The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.