IDEAS home Printed from
   My bibliography  Save this paper

Nuclear Power Plants Shutdown and Alternative Power Plants Installation–A Nine-region Spatial Equilibrium Analysis for the Electric Power Market in Japan


  • Nobuhiro Hosoe

    (National Graduate Institute for Policy Studies)


After the Great East Japan Earthquake and the subsequent nuclear accident, nuclear power stations cannot be considered safe any longer and, thus, can be hardly allowed to restart in Japan. In this study, we develop a nine-region spatial equilibrium model for the Japanese power market and simulate two-part situations: (1) none of the nuclear power plants can operate any longer and (2) gas turbine combined cycle (GTCC) power plants are installed to fully cover the lost capacity of the nuclear power plants. When all the nuclear power plants are shut down, the average power prices would rise by 1.5–3 yen/kWh. By substituting their capacity with the GTCC power plants, we could compress the average price rise as high as 0.5–1.5 yen/kWh compared with the status quo. Their impact, however, would differ by region on the basis of the share of nuclear power in their plant portfolios. When nuclear power is fully available, inter-regional transmission is mainly driven by the abundant base-load capacity, including nuclear power, during the nighttime. After the nuclear power plant shutdown, the regions with abundant nuclear power capacity would not be able to afford to sell their power to other regions and this would cause less serious congestion at the inter-regional transmission links. The installation of GTCC power plants would make the plant portfolios more similar among regions and, thus, reduce inter-regional transmission further, which causes congestion very rarely.

Suggested Citation

  • Nobuhiro Hosoe, 2012. "Nuclear Power Plants Shutdown and Alternative Power Plants Installation–A Nine-region Spatial Equilibrium Analysis for the Electric Power Market in Japan," GRIPS Discussion Papers 12-11, National Graduate Institute for Policy Studies.
  • Handle: RePEc:ngi:dpaper:12-11

    Download full text from publisher

    File URL:
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    1. Hosoe, Nobuhiro & Akiyama, Shu-ichi, 2009. "Regional electric power demand elasticities of Japan's industrial and commercial sectors," Energy Policy, Elsevier, vol. 37(11), pages 4313-4319, November.
    2. Hosoe, Nobuhiro & Tanaka, Makoto, 2012. "Divestiture of TEPCO for reparation for the Fukushima nuclear accident–A path to vertical unbundling," Energy Policy, Elsevier, vol. 51(C), pages 207-212.
    Full references (including those not matched with items on IDEAS)

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ngi:dpaper:12-11. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.