Japan's Chubu Electric Power plans to shut down its Hamoka nuclear plant in central Japan due to its vulnerability to major earthquakes.

The move comes in line with the Japanese Prime Minister Naoto Kan’s plans to review its energy policy.

Chubu Electric said the company can meet the peak demand of 25,600 MW even after the plant’s closure.

But the dependence on thermal plants to fill the power gap would increase costs by JPY 700m ($8.7m) a day or about JPY256b ($3.18bn) a year, reports Reuters.