japan's current nuclear energy policy

Japan’s Current Nuclear Energy Policy

Agency for Natural Resources and Energy, METI Oct, 2015

1. Energy Best Mix - Long term outlook of energy demand and supply

2. Efforts towards restarts of NPPs

3. Roadmap for Electricity Market Reform in Japan

4. Measures to adjust business environment under the deregulated market

5. The Action Plan for the Spent Fuel Management

6. Progress on Decommissioning and Contaminated Water management

activities

7. Contribution to Peaceful Use of Nuclear Power and Nuclear Non-proliferation

in the World

Table of Contents

1

Greenhouse Gas Emission

Worst record of CO2 emission* in FY2013, due to NPPs shut-down replaced by additional thermal power generation

*Originated from energy supply

Internationally comparable target of Greenhouse gas reduction

【Goal for Environment】

A METI’s advisory-committee on energy best mix set up 3 goals corresponding to 3”E” on the premise to secure safety, in order to compile an outlook of 2030 demand & supply structure of energy in Japan.

Secure S afety

Premise

Electricity Cost

Lower the cost less than present level

【Goal for Economic efficiency】 Significant rise in electricity price since 3.11 approx. 30% up for industry

approx. 20% up for household Surcharge for FIT ; 1.3 trillion yen in FY2014

Self-Sufficiency Rate

Only 6% at present Approx. 25%, exceeding the level before 3.11 （≒approx. 20%）

【Goal for Energy security】

2

【Source】 Extraction (preliminary translation) from documents in the 8th Long-term Energy Supply & Demand Outlook Subcommittee, Advisory Committee for Natural Resources & Energy, METI

1. Energy Best Mix – Long term outlook of energy demand and supply

2030 Solar 74.9 7.0% Wind 18.2 1.7%

Geothermal 10.2～11.3 1.0～1.1% Hydropower 93.9～98.1 8.8～9.2%

Biomass 39.4～49.0 3.7～4.6%

Composition of electricity sources and electricity generation （billion kWh）

2030

Oil 31.5 3%

Coal 281.0 26%

LNG 284.5 27%

Nuclear power 216.8～231.7 22～20%

Renewable energy 236.6～251.5 22～24%

Total 1065.0 100%

2030

Renewable energy 22~24% (approx.)

LNG 27% (approx.)

Coal 26% (approx.)

Oil 3% (approx.)

LNG 27%

Oil 12%

Coal 24%

Average in the last 10 years before 3.11

Nuclear power 27%

Renewable energy 11%

Nuclear power 22~20% (approx.)

※All the numbers are approximately 【Source】 extracted (preliminary translation) from documents released in the 11th Long-term Energy Supply and Demand Outlook

Subcommittee, Advisory Committee for Natural Resources and Energy, METI 3

METI officially decided and announced the “Energy Mix” on 16 July, with the number of 20-22% in 2030 as for the share of nuclear power generation.

1. Energy Best Mix – Long term outlook of energy demand and supply

Energy conservation 17% (approx.)

PWR BWR

Tomari

Ohma

Onagawa

Fukushima Daini

Hamaoka

Tokai・Tokai Daini

Fukushima Daiichi

Kashiwazaki Kariwa

Sendai Ikata

Genkai

Shimane

Shika

Tsuruga

Takahama

Ohi

Mihama

Higashidori(Tokyo)

Higashidori(Tohoku)

ABWR

２９２４２２２０２５１８１８

２２９

２８

３８

３６３５２３２２

４０３９３０３０

２６

３４２１１８

２６２４５

３７３３２０

２１１０

３３３１２７３０

３６

３１２０１３

９

２７

３１２９

Reactor-type

Under NRA Review for basic design and concept (Total 25 Units）

Age (Applied Date for NRA Review)

Not Start Operation

→ Permitted in Feb. 2015

→ Permitted in Sep. 2014 → (Unit 1) Restarted in Sep. 2015 4

Decided to be permanent shutdown in April 2015 (Total 5 Units）

→ Permitted in Jul. 2015


**Based on “the Basic Act on Disaster Control Measures” and “the Act on Special Measures concerning Nuclear Emergency Preparedness”

Preparation and enhancement of the disaster prevention and evacuation plan

*Not required by the nuclear reactor law

Safety Reviews and Inspections process of NRA

Local acceptance process * No legal requirements

Disaster prevention and evacuation plan (Sendai, Ikata) *Not a legal prerequisites for restart

Date Reactor Applicant

Sep. 10 2014

Sendai NPS, Unit 1 and 2

Kyusyu Electric Power

Feb. 12 2015

Takahama NPS, Unit 3 and 4

Kansai Electric Power

Jul. 15 2015

Ikata NPS, Unit 3

Shikoku Electric Power

Permitted reactors

Review of basic design and concept (for permission of reactor

installment license change)

Review of detailed design (for approval of construction works plan)

Assessment of Operation management systems, etc. (for approval of operational

safety programs

5

Date Reactor Applicant Date Date Date

Mar. 18 2015

Sendai NPS, Unit 1 Kyusyu

Electric Power

May 27

2015

Aug 11 2015

Sep 10 2015

May 22 2015

Sendai NPS, Unit 2 －－

Aug 4 2015

Takahama NPS, Unit 3

Kansai Electric Power

－－－

Approved reactors

Local acceptance process


(Ref.) Statement by Minister Miyazawa, Start of Power Generation Using Sendai Nuclear Power Station Unit 1

6

August 14, 2015 On August 14, 2015, Kyushu Electric Power Co., Inc. reported to the Ministry of Economy, Trade and Industry that they had started generating power using Unit 1 of the Sendai Nuclear Power Station at 9:00 a.m. The start of power generation using Sendai Nuclear Power Station Unit 1 is an essential step toward the establishment of a well-balanced power source mix, and a more stable electric power supply. Sendai Nuclear Power Station Unit 1 is still in the process of inspection. We expect not only that Kyushu Electric Power Co., Inc. will ensure that safety is the highest priority, but also that inspections will continue to be strictly conducted by the Nuclear Regulation Authority.

1st Reform: passed in Extraordinary Diet in 2013 1) Establishment of the Organization for Cross-regional

Coordination of Transmission Operators (OCCTO) 2) Action programs for 2nd and 3rd Reforms etc.

2nd Reform: Passed in Ordinary Diet in 2014 1) Full retail competition 2) Revision of applicable and regulations associated

with the abolishment of General Electricity Utility system

3rd Reform: Passed in Ordinary Diet in 2015

1) Legal unbundling of transmission/distribution sectors

2) Code of Conduct

1 st reform

Cabinet Decision on the Policy on Electricity

System Reform

Abolishment of retail tariff

Legal unbundling of transmission

/distribution sector

（※2015 (approx.):Transition to new regulatory organizations）

【1st Step】 2015

【2nd Step】 2016

【3rd Step】 2018-2020

2 nd reform

3 rd reform

The 1st Bill

(1st bill) 2013

Establishment of the Organization for Cross-regional Coordination of Transmission Operators

(OCCTO)

Full retail competition

Period of transitional arrangement for retail tariff

(2nd bill) 2014

(3rd bill) 2015

The 2nd Bill

7

The 3rd Reform Bill for the electricity market passed the Diet on 17 June. On 1 September, the “Monitoring Committee for the Electricity Trade” was established.

Verification for Electricity Market Reform In advancing market reform, GOJ has to verify the enforcement status of each bill, the implementation status of

the Strategic Energy Plan and the electricity supply-demand situation at following opportunities: ①before-full-retail-competition, ②before legal unbundling of transmission/distribution sector, and ③after the enforcement of legal unbundling.

Depending on the outcome of each verification, GOJ has to take necessary measures.

3. Roadmap for Electricity Market Reform in Japan

Changes in business environment for the power industry, such as a growing market competition along with electricity market reforms and lower dependency on nuclear energy, may raise some challenges regarding the reprocessing of spent nuclear fuels.

Under the new business environment, it is necessary to implement institutional measures in order to secure funds for expenses for the appropriate and efficient reprocessing operations of spent nuclear fuels. METI’s advisory committee started to discuss these issues on July.

<Implementation structure> <Funds> <Appropriate and efficient project >

• Before the deregulation, utilities have jointly cooperated to implement the project

• Difficulty for mutually-competing utilities to cooperate

• Abolition of regional monopoly and regulated price

• Growing competitions among utilities • Uncertainty for collecting funds for the

reprocessing project

• The differing interests of utilities could impede the implementation of the appropriate and efficient project

Challenges under new business environment

• Secure funds for the reprocessing project by reviewing the current institutional system

• Reorganize implementing body by imposing certain restricts for liquidation

• Enhance government’s involvement • Utilize existing technologies and

human resources in private sector

• Create the system which encourages the utilities’ commitment to the reprocessing project

• Establish good governance for the project

Direction Institutional measures to tackle these challenges

4. Measures to adjust business environment under the deregulated market

8

9

5. The Action Plan for the Spent Fuel Management

“The Action Plan for the Spent Fuel Management” was endorsed by the Ministerial Meeting for the final disposal of nuclear waste.

“The Action Plan for the Spent Fuel Management” 1. Establishment of a coordinating body between the government and the utilities.

2. Request to each utility to formulate a “Plan for promotion of nuclear spent fuel

management”

3. Review of subsidy systems for the local communities (especially to incentivize dry cask storage)

4. Promotion public understandings for the spent fuel management

5. Implementation of the nuclear fuel cycle policy including the Rokkasho Reprocessing Plant and the Mutsu Interim Storage Facility

Contaminated Water management

■ Removing the contamination source ① Clean up contaminated water using multi-nuclide

removal equipment (ALPS), etc. ② Remove highly contaminated water from seawater

pipe trench <COMPLETED in August>

■ Isolating groundwater from contamination sources

③ Groundwater bypassing system ④ Pump-up from sub-drain around the reactor

building<STARTED on 9/14> ⑤ Land-side frozen soil impermeable walls ⑥ Waterproof pavement wide area facing

■ Preventing leakage of contaminated water ⑦ Ground solidification by sodium silicate ⑧ Sea-side impermeable walls ⑨ Installation of welding type tanks including

replacement from flange (bolt) type

Decommissioning

■ Fuel Removal from SFP ○ Completed in Unit 4 (December, 2014) ○ Debris removal is underway towards fuel

removal from Unit 1-3 etc. ■ Removal of Fuel Debris

○ Investigation into the PCV etc.

２４

⑧Sea-side impermeable walls

⑤Land-side impermeable walls

④Wells near the buildings (sub-drain)

③Groundwater

bypass system

⑥Waterproof pavement

Flow of groundw

ater ①Multi-nuclide removal equipment etc.

⑨Installation of tanks

⑦Ground improvement

②Remove contaminated water in the trench

３１

Fuel debris

Fuel in SFP

10 Unit 1 Unit 2 Unit 3 Unit 4

1533/1533 completed

＜Current status of each Unit＞

10

6. Progress on Decommissioning and Contaminated Water management activities

Unit 1

Unit 2

Unit 3

Unit 4

<At the Time of the Accident> <Now>

<At the Time of the Accident>

<Now>



Hydrogen explosion Core melt

No hydrogen explosion Core melt

Hydrogen explosion Core melt

Hydrogen explosion No core melt

• The building cover was installed to prevent dispersion of radioactive materials. • Now the cover is being dismantled in preparation for the fuel removal operation.

• Currently, toward the fuel removal from SPF, removal of rubbles is underway. • On August 2, 2015, removal of largest rubble(FHM), weighs close to 20 tons,

lying in the spent fuel pool was completed.

• On December 22, 2014, all (1533) fuel removal from Unit 4 SPF was completed. 11

6. Progress on Decommissioning and Contaminated Water management activities

(i) A permanent shutdown will also stymie responsible international nuclear development, as developing countries will continue to build nuclear reactors. --- China could eventually emerge as a significant international vendor. As China plans to join Russia, South Korea, and France in the major leagues of global development in civilian nuclear power, Japan cannot afford to fall behind if the world is to benefit from efficient, reliable, and safe reactors and nuclear services. (ii) Japan and the United States have common political and commercial interests in promoting safe and reliable civilian nuclear power domestically and internationally. (iii) Safe, clean, responsibly developed and utilized nuclear power constitutes an essential element in Japan’s comprehensive security. In this regard, U.S.-Japan cooperation on nuclear research and development is essential.

●The 3rd Armitage-Nye Report issued by CSIS on August 15, 2012 (Excerpt)

Japan is committed to securing non-proliferation as well as nuclear safety and security in the world by providing proven technologies with US allies, given growing influence of Russia and China in the world nuclear market.

12

7. Contribution to Peaceful Use of Nuclear Power and Nuclear Non-proliferation in the World

China is promoting installation of Generation-III reactor technology and own domestic production. State Power Investment (SPI: merger of SNPTC and CPI) is now deploying the first four units of

Westinghouse AP1000 (Generation-III plants) in China. SPI has also been developing CAP1400, which has larger-scale based on AP1000 as well as includes more indigenous components at Huaneng's Shidaowan site.

China National Nuclear Corporation (CNNC) and China General Nuclear Power Group (CGN) are working together to develop domestic reactor Hualong One by integrating the technologies of CNNC’s AP1000 and CGN’s ACPR1000+. The first Hualong One will be deployed for Fuqing 5&6(CNNC).

China is strongly promoting nuclear export globally toward such countries as Turkey, Sudan and Pakistan. Especially in Turkey, according to media sources, SPI committed to invest in AP1000 construction project at the third site following Akkuyu and Sinop. In return for the investment, SPI will gain a wider coverage of manufacturing of AP1000 components.

1. China’s Efforts for self-sufficient in reactor design and construction（CAP1400, Hualong One）

China and UK signed a MOU in October 2013. The MOU stipulates the strategic framework for collaboration on investment, technology, construction and expertise in the field of civilian use of nuclear energy.

In the same month, EDF officially announced that EDF and Chinese companies(CGN and CNNC) agreed to jointly invest in Hinkley Point C nuclear power station. The total share of China’s equity is expected to be 30-40%.

2. China’s entry to the UK nuclear market

3. China’s activities in the world nuclear market

Expansion of China’s presence in the world nuclear market

13

(Ref.) Current Situations in the World Nuclear Market

14

(Ref) Joint Declaration between the Leaders of France and China (June, 2015)

In the field of reactors, the excellence of cooperation between France and China calls to explore a narrower association of our industrialists for: i. the conception of the new competitive and sure reactors of third generation, ii. the building of nuclear power stations, This must be translated by: • The successful building of both EPR of Taishan 1 and 2 thanks to efforts

conjugated by both parts; • The participation of the Chinese consortium piloted by CGN and with the

cooperation of CNNC in the plan of building of two reactors EPR on the site of Hinkley Point C and in the preliminary preparations of plan Sizewell;

• The support of EDF and its participation in the development of a plan piloted by a Chinese consortium on another site of British nuclear power station, and to the joint conception of a reactor based on the technology of the reactor Hualong 1 which will be adapted, afin notably that this one meets requirements of the independent authority of British nuclear safety and to that of competitiveness.

• Debates between the industrialists of both parts on the installation of a partnership between them carrying on the reactors of medium and big power within sight notably the common development of the third markets on the basis of the mutual benefit.

15

Comments by the Chancellor George Osborne “Our message to our Chinese counterparts is clear, I want the UK to be China’s best partner in the West. I want us to enjoy a golden decade where we help each other to grow, to create jobs and raise living standards.” https://www.gov.uk/government/news/chancellor-announces-major-progress-in-civil-nuclear-partnership-between-the-uk-and-china-at-7th-economic-and-financial-dialogue

(Ref) China and UK

Combined Policy Outcomes of the 7th China-U.K. Economic and Financial Dialogue 21 September, 2015 “The UK side warmly welcomes and supports Chinese investment and participation in the Hinkley Point C project and progressive involvement in the UK nuclear newbuild market, including leading the development of other U. nuclear site(s) as fast as practicable, and supports the deployment of Chinese nuclear reactor technology, subject to meeting the requirements of the UK’s independent regulators.”

https://www.gov.uk/government/news/chancellor-announces-major-progress-in-civil-nuclear-partnership-between-the-uk-and-china-at-7th-economic-and-financial-dialogue








































1. OECD member states are obliged to compete against Russian with the restraints of public financing stipulated in the Nuclear Sector Understanding (NSU) of OECD Export Credit Arrangement in the world nuclear market.

2. Russia and China, which are non-OECD member states, have an advantage in promoting nuclear export in the world market with better terms and conditions of public financing.

Russia’s advantage in the field of public financing ①

16


Case 1: Hungary

Hungarian Government was to start a bidding process for their NPP new construction. In January 2014, the Hungarian Prime Minister officially and suddenly announced that

Russia was selected as Hungary's exclusive partner for their NPP construction during his official visit to Russia.

The Hungarian Prime Minister’s office web site says that Russian loan for the EUR 10-12 billion investment would be provided for a 30-year term which covers 80% of the total cost.

Russia’s advantage in the field of public financing ②

17


Case 2: Finland Fennovoima (FV), a NPP operator in Finland requested bidders for its reactor project to

procure 100% debt finance. FV identified Toshiba as a preferred bidder. Toshiba proposed a finance arrangement

from Japanese ECAs (Export Credit Agencies) based on the NSU terms and conditions (which did not cover full debt portion).

After receiving Toshiba’s proposal, FV decided to start negotiation with Rosatom. FV entered into a plant-supply agreement with Rosatom and terminated negotiation

with Toshiba. A FV executive noted that finance was the most important factor as Rosatom confirmed full debt finance arrangement for the project.

Case 3: Czech Republic

The Operational Vice President of Rosatom Overseas noted that “We are ready to provide anything from a small part of the financing to 100 percent. It is up to the Czech Republic to decide how much they want.”

CEZ, a NPP operator requested U.S. and Japan that they should provide 100% debt finance as well. US EXIM and JBIC offered a “matching” with the Russian finance.

japan's current nuclear energy policy

Documents