nuclear-news

The CfD, introduced in Britain, guarantees that electricity will be purchased at a fixed rate over a certain period of time.

The purchase price is calculated in consideration of the plant’s total cost, including future expenses, such as those for disposing of spent nuclear fuel and decommissioning reactors.

An agreement has been reached to apply the system to one nuclear power plant in Britain, with the reference purchase price set at 8.95 pence (around 15 yen or $0.13) per kilowatt-hour. That is higher than the corresponding price for a land-based wind farm, and comes with a longer guarantee period of 35 years.

A nuclear plant requires so much initial investment that there is no guarantee the cost will be recovered under the market economy. That is why the CfD and other protective measures for nuclear plants are being discussed in Japan ahead of the liberalization of the power retail market slated for 2016.

But various objections have been raised to the introduction of such measures.

First, the purchase price will likely be reflected in electricity rates, increasing the financial burden on consumers……….

Second, the decision process is not transparent………http://ajw.asahi.com/article/views/column/AJ201501150006