TEPCO struggles with cost of nuclear disaster and renewables

The massive costs of coping with the aftermath of the Fukushima Dai-ichi plant nuclear disaster has left its operator with limited funds to convert to alternative energy sources.

Tokyo Electric Power Company or TEPCO doesn't have the money to invest in renewable energy because of its difficult financial position caused by the crisis, said President Naomi Hirose.

Unable to pay massive compensation and cleanup costs, TEPCO was nationalized by the Japanese government after receiving a US$13 billion bailout.

TEPCO established a renewable energy affiliate, Eurus Energy Holdings Corporation, which has built three mega-solar power plants and more than a dozen windmills despite its financial straits.

"We tried to develop those renewable powers, but unfortunately after 3/11 we do not have much money and we probably cannot spend as much money to build renewable energy," Hirose said.

Hirose said he was troubled by the government’s decision to deemphasize nuclear power in favor or renewables but said TEPCO will follow any energy mix the government decides as part of its energy policy.

Before Fukushima, Japan relied on nuclear power for one-third of electricity needs and was planning to increase that to 50% by 2030. Since Fukushima, all of Japan's 50 reactors have been shut down for routine tests, and only two have been restarted because of strong anti-nuclear sentiment.

"Honestly, a change of policy from 50 percent (nuclear dependency) to zero is quite troubling," he said. He said the impact on the company "could be very big" if the government sets a major nuclear phase-out target. He said this would force TEPCO to make significant changes in policy and management.