Japan struggles with rising maintenance costs 15 years after Fukushima disaster - SCMP

Fifteen years after the Fukushima Daiichi nuclear disaster, Japan continues to grapple with escalating financial burdens linked to long-term cleanup, decommissioning, and economic fallout. According to updated estimates from the Ministry of Economy, Trade and Industry, total costs associated with the crisis now exceed ¥20 trillion (US$178.8 billion), nearly double the initial projection of ¥11 trillion. This includes ¥8 trillion allocated for compensation to evacuees and affected businesses, up from ¥5.4 trillion previously, and ¥5 trillion for decontamination efforts, doubling earlier assessments. Decommissioning the damaged reactors and managing radioactive water at the site are expected to add several trillion yen further, beyond the prior estimate of ¥2 trillion.

The disaster's economic ripple effects remain significant. Japan's reliance on imported liquefied natural gas to replace lost nuclear capacity has driven energy costs higher, with utilities spending ¥7.3 trillion ($73 billion) on fuel in fiscal year 2012 alone. Meanwhile, the exclusion zones—covering roughly 310 square miles—remain uninhabitable due to persistent radioactive contamination, with cesium-137's 30-year half-life ensuring environmental and economic challenges for centuries.

Despite restarts of some reactors under stricter safety standards, Japan's nuclear energy share remains below pre-disaster levels, complicating efforts to reduce energy costs and achieve carbon neutrality. The government faces ongoing pressure to balance financial liabilities, public safety, and energy policy, with TEPCO's restructuring and cost recovery measures under scrutiny. As decommissioning progresses, uncertainties around radioactive waste management and seismic risks at the site underscore the enduring financial and operational complexity of the Fukushima legacy.