Japan’s power costs could double by 2030 – Wood Mackenzie

Options for provision of dispatchable power to replace fossil fuels remain very expensive across Asia-Pacific, consultant says

Japan faces a potential doubling of its average power generation costs by 2030 as it tries to decarbonise its electricity system, according to consultancy Wood Mackenzie. Current proposals for Japan to use a fuel mix of 20pc green or blue ammonia and 80pc coal would cost around $150/MWh by 2030. An alternative approach, using offshore wind and distributed solar—backed up by storage and gas-fired plants—would have a similar price tag. And other Asia-Pacific countries face similar cost challenges. “Economics is a key factor in choosing options to reduce the fossil fuel share of the Asia-Pacific power system, which sits at around 70pc today,” says Wood Mackenzie research director Alex Whitwort