Nuclear power generation in Japan is about 50 percent more expensive than estimated after factoring in the cost of paying for an accident like the Fukushima disaster, a government panel said. Nuclear energy costs at least 8.9 yen (11 cents) per kilowatt hour, compared with a government estimate of 5.9 yen in 2004, the panel said in a draft report today. Coal is estimated to cost 9.5 yen per kilowatt hour, while liquefied natural gas and oil cost 10.7 yen and 36 yen respectively. Japan’s government is reviewing its energy policy after the disaster at Tokyo Electric Power Co. (9501)’s Fukushima Dai-Ichi atomic station. The government will use the panel’s findings to draw up a new energy policy that may call for reducing reliance on nuclear power.
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