Japan to avert winter power crunch, braces for summer shortage

Japan is expected to avert power outages this winter through energy conservation but new problems will arise in summer as its entire fleet of reactors could be kept idled.

A nationwide supply gap next summer is estimated at 16,560 megawatts, or about 10 percent of peak-hour demand, if no reactors restart by then. This winter, shortages are limited to two regions, with an estimated gap of up to 2,530 MW.

Utilities plan to secure additional fossil-fuel capacity of 4,090 MW by next summer, the government announced in its first action plan for the summer unveiled, Reuters reported.

But other plans depend on how far policy initiatives and fiscal spending can encourage energy conservation and the use of solar and wind power, leaving the risk of rolling blackouts.

Concerns about stable supply of electricity are prompting some companies to shift production overseas. A rise in fuel costs for utilities to make up for a lack of nuclear power, leading to bigger electricity bills for consumers, is another factor undermining the economy.

"Even if no reactors are restarted by next summer, the government would like to do its utmost through policy efforts to ensure we can meet peak-hour demand and avoid a rise in costs for energy," Trade Minister Yukio Edano said at a news conference after he and other ministers discussed chances of power shortages this winter and next summer.

Before the March disaster, nuclear power generation accounted for about 30 percent of the country's power supply.

For this winter, the government called on users in Osaka and surrounding areas and the southern island of Kyushu to meet numerical targets for curbing power use during peak hours.

The government also urged users in other areas to voluntarily curb peak-hour power use on weekdays between Dec. 1 and March 30.

For next summer, action plans include the introduction of solar, wind and other renewable sources of up to 2,330 MW, a change in the way utilities charge electricity bills of up to 7,100 MW and energy saving efforts of up to 2,700 MW.