"Return to nuclear power"

December 18, 2014

Takahama reactors meet new safety standards, paving way to 'return to nuclear power'

http://mainichi.jp/english/english/perspectives/news/20141218p2a00m0na012000c.html

The Nuclear Regulation Authority (NRA) concluded on Dec. 17 that the No. 3 and 4 reactors at Kansai Electric Power Co.'s Takahama Nuclear Power Plant have met its new safety requirements, clearing one of the hurdles to restarting the idled facilities.

The government, meanwhile, is poised to start discussing the reconstruction of aging nuclear power stations. Although the ruling parties won a solid majority in the Dec. 14 House of Representatives election, it cannot be said that they have secured a free hand over the country's nuclear energy policy, which was not fully debated during the election. The government of Prime Minister Shinzo Abe has made clear its stance toward "returning to nuclear power," but it remains to be seen whether the government will be able to secure public understanding for continued reliance on nuclear power by restarting idled reactors and rebuilding aging nuclear power plants.

Following the NRA's decision on the Takahama plant in Fukui Prefecture, a senior Kansai Electric official said, "If the Takahama reactors are reactivated, we'll be able to focus on measures to restart the No. 3 and 4 reactors at our Oi Nuclear Power Plant."

Safety requirements for nuclear reactors were tightened after the Fukushima disaster. Earlier, two reactors operated by Kyushu Electric Power Co. also passed the requirements. These developments are favorable for other major utilities because idled nuclear reactors in the country appear to be on track to being restarted.

Some Kansai region manufacturers have shifted their manufacturing bases elsewhere because of higher electricity prices and an unstable power supply during the summer, caused by the shutdown of nuclear power plants. The business community is now hopeful that those companies will bring their factories back to the Kansai region, because their power supply will become stable if nuclear reactors go back online

Fuel costs shouldered by power companies across Japan to operate their thermal power plants have increased about 3.6 trillion yen from pre-disaster levels. Financially strained, these companies have introduced full-scale price hikes. At the same time, increasing crude oil prices have pushed up electricity prices further, forcing businesses and households to shoulder the extra burden.

Those factors have played a part in the Abe government's move to promote nuclear power. If electricity prices remain high, they will get in the way of economic recovery, though the Abe administration has set forth corporate tax cuts as a key policy measure for economic growth in his economic policy mix, dubbed "Abenomics." The government is set to accelerate efforts to reactivate 21 reactors at 14 nuclear power stations across the country, but it will not stop there. It is also trying to shift its policy focus to the idea of continuing to rely on nuclear power by rebuilding aging nuclear power stations.

Under the Basic Energy Plan adopted by the Cabinet in April, the government set forth a plan to promote reactivation of idled nuclear reactors. At the same time, it said that it would "reduce (its reliance on nuclear power) as much as possible." The government, therefore, postponed its decision on the best possible composition of different energy sources, including nuclear, thermal and renewable energy.

If the government were to prohibit construction of additional nuclear plants and the rebuilding of existing nuclear facilities, and if it did not extend reactors' designated 40-year lifespan, Japan's nuclear generating capacity would be halved by 2030 and there would be no nuclear plants in the country by 2049. The government's discussions on the best possible composition of various energy sources will focus either on the "natural death" of nuclear plants, or continued reliance on nuclear power.

Nuclear power plants play a certain role in combating global warning. Considering the fact that it will take a long time to decommission nuclear power plants and process radioactive waste, it is necessary to nurture nuclear engineers. Local governments that host nuclear power plants are seeking new financial resources because they will not receive government subsidies and fixed property tax revenues if nuclear power plants are decommissioned. Based on these ideas, the government has opted for a policy of retaining nuclear power generation by rebuilding aging nuclear power stations.

Nonetheless, the costs of rebuilding and running nuclear power plants are expected to swell as a result of anti-disaster measures and extra expenses to improve safety. It costs several hundred billion yen to build a single nuclear power plant, and it takes time to recover the costs for such an investment. While deregulation of the electric power industry moves forward, a representative of one utility commented, "If we were to continue to run nuclear power plants, we would want a guarantee for stable electricity charges." However, it is difficult for utilities to secure public understanding for receiving special treatment for building and running nuclear power stations.

There was no in-depth debate on nuclear power during the Dec. 14 general election. If the government were to press forward and promote nuclear power with no debate, it would likely provoke a fierce public backlash. (By Masahiro Nakai and Shinya Hamanaka, Economic News Department)

December 18, 2014(Mainichi Japan)