Economics
Coal Spending in Japan Risks Stranding $57 Billion of Assets
- Tepco has highest exposure to asset stranding among 5 studied
- Oxford University releases report on Japan coal power plans
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Utilities and other companies in Japan pushing ahead with new investments in coal-power plants risk creating 6.22 trillion yen ($57 billion) of stranded assets amid shifts in energy policy and the economics of power generation, according to a study by Oxford University’s Smith School of Enterprise and the Environment.
The amount of coal-fired generating capacity planned or under construction in Japan exceeds the capacity required to replace the nation’s retiring fleet by 191 percent, according to the study released on Thursday.