JAPAN - Tokyo faces 6 months of massive blackouts

Tokyo (AP):

Densely populated Tokyo endured more rolling blackouts yesterday and faces at least six months of power shortages as earthquake damage to nuclear plants idles factories with possible global repercussions.

The 8.9 magnitude quake and tsunami that obliterated towns in Japan's northeast a week ago forced the utility that serves Tokyo, a centre for finance and global manufacturers such as Toyota and Sony, to slash power supplies by a quarter.

Power to parts of the sprawling region, which produces 40 per cent of Japan's economic output, is cut for three hours a day, shutting down commuter trains and traffic lights.

Replacing lost power supplies will be a key challenge in getting Japan back on its feet economically after a disaster that may cost as much as US$200 billion. Power shortages will last at least six months while conventional generators are repaired or replaced, affecting companies that are key links in global manufacturing and trade. With four nuclear reactors out of action, likely permanently, Japan's demand for oil and gas to fuel power generation is expected to surge, pushing up global prices.