Japan’s Kansai Electric to shut down 2 major nuclear reactors — Nikkei Asian Review

” OSAKA — Kansai Electric Power Co. has decided to close two large, aging nuclear reactors at a power plant in Fukui Prefecture in light of rising safety costs that make restarting such facilities financially untenable.

The Oi plant’s Nos. 1 and 2 reactors each have an output capacity of 1.18 million kW, making them Japan’s largest to be decommissioned aside from Tokyo Electric Power Co. Holding’s crippled Fukushima Daiichi reactors. Both started operating in 1979. The Osaka-based utility is in talks with Fukui local governments and other parties to make a final decision before winter.

Following the 2011 earthquake and tsunami that caused the Fukushima catastrophe, Japan limited nuclear plants’ operating lifespan to four decades as a general rule. That period can be extended to a maximum of 60 years with the Nuclear Regulation Authority’s approval, but that requires safety investments to the tune of 100 billion yen ($894 million).

Previously, energy companies generally aimed to extend the lifespan of old plants with generation capacities of millions of kilowatts. But with safety costs climbing and energy demand stagnating, turning a profit has grown difficult even at large-scale facilities.

Kansai Electric had already decided to decommission two smaller reactors at its Mihama plant, also in Fukui. Those were among Japan’s six reactors — not including Fukushima Daiichi — with approval to shut down, all with output capacities in the 300,000 kW to 500,000 kW range.

Restarting a planned seven reactors is projected to cost Kansai Electric about 830 billion yen for safety measures. Adding the Oi pair would push the total over 1 trillion yen. Decommissioning a plant takes about 30 years and costs tens of billions of yen, but it is still cheaper than restarting it.

The power company sold around one-fifth less energy in fiscal 2016 than it did in fiscal 2010, as Japanese society grew more energy-conscious following the 2011 disaster and the liberalization of energy retail that led to a loss of customers. Shutting down the two Oi reactors and others will cut the Osaka utility’s generating capacity by around 10%, but with demand also cooling, the reduction is not expected to crimp supply.

Nuclear power now contributes less than 10% of Japan’s energy, down from about 30% before Fukushima. The government’s current plan calls for nuclear power to make up about 20-22% of the total in 2030, far above the present scale.

Japan idled its nuclear plants to make them compliant with tougher safety standards after Fukushima. At present, just five are back online, operated by Kansai Electric, Kyushu Electric Power and Shikoku Electric Power. The government’s target would require having around 30 plants running. But many are more than three decades old, and so will soon either need to be turned off or seek an extension.

If profit concerns force more power companies to go the Osaka utility’s route, Japan’s proportion of nuclear power will remain low, complicating the government’s plan. ”

by Nikkei Asian Review

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Japan circling back to nuclear power after Fukushima disaster — Forbes

” In the immediate aftermath of the 2011 earthquake and tsunami that crippled the Fukushima Dai-ichi nuclear plant, Japan idled all 54 of its nuclear plants. Now, though, five of them are back online while many more may be on the way.

Prime Minister Shinzo Abe, who is pro-business and who realizes that without carbon-free nuclear power the country won’t meet its climate objectives, has said that reactors deemed safe by regulators would be restarted. To that end, the Japanese media is reporting that the Tokyo Electric Power Co. (Tepco) — the state-run utility that operated the Fukushima plant — is expected to get approval to rev up two units that resemble the design of the reactors that succumbed to the natural disaster in March 2011. 

“One consequence of the accident was a gradual shutdown of all nuclear power plants, which has led to a significant rise in fossil fuels use, increased fuel imports and rising carbon dioxide emissions. It has also brought electricity prices to unsustainable levels,” the International Energy Agency (IEA) reports. “The IEA encourages Japan to increase low-carbon sources of power supply.”

Meanwhile, another Japanese utility, Kansai Electric Power Co., recently started up two different reactors. While 43 other reactors remain offline, about 21 re-start applications are now pending with an estimated of 12 units to come back in service by 2025 and 18 by 2030, Japan Forward reports.  (The Fukushima accident took out four of the 54 nuclear units. Five of those are now back in service, leaving 43 idled.)

Right now, nuclear energy is providing 1.7% of Japan’s electricity, which is down from 30% before the 2011 accident. The Ministry of Economy, Trade and Industry says that if the country is to meet its obligations under the Paris climate accord, then nuclear energy needs to make up between 20-22% of the nation’s portfolio mix — a country with limited natural resources upon which it can rely. Under that agreement, Japan has committed to cut its CO2 emissions by 26% between 2013 and 2030. 

“We believe that energy policy is a core policy of a nation, and must be approached from a medium- to long-term standpoint … especially as Japan has few energy resources,” the Federation of Electric Power Companies of Japan chairman Makoto Yagi is quoted as saying by the World Nuclear News. 

One factor that has helped Japan is a nuclear watchdog that was created in September 2012: The Nuclear Regulation Authority has eliminated the cozy relationships that allowed utility employees to become nuclear regulators and it has stood up to political pressure to turn a blind eye to operational shortcuts. The agency has shown its willingness to exert its influence and to routinely give updates on the disabled Fukushima nuclear facility. 

As such, the country’s nuclear reactors are all going through rigorous stress tests to ensure that they can survive events similar to what happened in March 2011. The Federation of American Scientists has said that the accident at Fukushima was preventable and its findings are being used to enable the restarts of more nuclear units in Japan.  

The potential restart of Japan’s nuclear fleet is within grasp in large measure because the infrastructure is in place and dismantling it would take decades, all of which makes nuclear power a more plausible long term alternative than importing liquefied natural gas, or LNG. Besides the economics, nuclear energy — from a climate point of view — is better than natural gas. 

No doubt, Japan has turned more and more to renewable energy and energy efficiency, which have helped the country reduce both its electricity consumption and its fossil fuel usage — something that a a majority of the country’s citizens favor. The Ministry of Economy, Trade and Industry suggests increasing its green energy mix from 9 percent today 22-24% by 2030. Major Japanese companies such as Toshiba, Hitachi and Mitsubishi are investing in wind, solar, and smart-grid technologies.

In combination with nuclear energy, low-carbon sources would amount to roughly 45% of the electricity portfolio mix by 2030 — if Japanese trade and energy officials’ plans come to fruition. Meantime, fossil fuels — coal, LNG and oil — would comprise 55% by then, which have been as much as 85% in recent years.

“The key in moving forward is how to implement the new energy mix that the government has set,” Federation of Electric Power Companies of Japan chairman Yagi said. “The power companies will meet the (safety, energy security, economic efficiency and environmental conservation standards) and contribute to the energy policy of Japan by maintaining and establishing generation facilities as appropriate, fully in line with the government’s policies.” 

The Japanese people’s continued skepticism is natural and healthy. But their leadership asserts that the critics’ concerns have been addressed and that the nuclear energy sector has undergone a transformation — one that is safer and more transparent than it has ever been. If Japan is to expand its economy while reducing its CO2 emissions, officials there reason that nuclear energy is critical and thus, they must leverage their existing assets. “

contributions by Ken Silverstein

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Nuclear authority chief raps Tepco’s attitude toward Fukushima — The Mainichi

” TOKYO (Kyodo) — The head of Japan’s nuclear safety watchdog on Monday criticized the attitude of Tokyo Electric Power Company Holdings Inc. toward decommissioning of the crisis-hit Fukushima Daiichi nuclear power plant and questioned the company’s ability to resume operation of other reactors.

 “I feel a sense of danger,” Nuclear Regulation Authority Chairman Shunichi Tanaka said during a special meeting with the company’s top management, adding that Tokyo Electric does “not seem to have a will to take initiative” toward decommissioning of the crippled Fukushima Daiichi plant.

Takashi Kawamura, the chairman of the power company known as Tepco, and its president, Tomoaki Kobayakawa, attended the meeting. The authority felt it is necessary to hear from the top executives before it could make a decision on whether to approve Tepco’s plan to resume operation of the Nos. 6 and 7 reactors at its Kashiwazaki-Kariwa plant in Niigata Prefecture.

Tepco filed for state safety assessment of the two reactors in September 2013 to reactivate them, hoping to restore its financial condition as it needed massive funds to pay compensation related to the Fukushima Daiichi disaster, triggered by a huge earthquake and tsunami on March 11, 2011, and to scrap the plant that suffered meltdowns.

The watchdog’s safety screening has found Tepco’s failure to report insufficient earthquake resistance of a facility built to serve as the base to deal with a possible nuclear accident at the Niigata complex although it had acknowledged the insufficiency for three years.

In June, Tepco submitted to the watchdog its revised safety measures for the Kashiwazaki-Kariwa complex.

“An operator lacking will to take initiative does not have the right to resume operation of nuclear reactors,” Tanaka said.

Tepco’s chairman responded by saying, “There are citizens who believe nuclear power is necessary. Operating reactors is our responsibility.”

But he also admitted there is room for only two more years’ worth of space in the tanks to accommodate contaminated water stemming from the Fukushima complex.

At Monday’s meeting, the watchdog asked Tepco’s top management about the company’s safety measures for the Niigata complex on the Sea of Japan coast as well as its safety awareness.

Tanaka said the authority does not view that it received sufficient responses from Tepco at the meeting and requested that the company submit more explanation on its plan to decommission the Fukushima complex and resume operation of the two reactors at the Kashiwazaki-Kariwa plant.

Tanaka plans to conduct on-site checkups at the two reactors of the plant in Niigata, saying, “Tepco, which caused the (Fukushima) accident, is not an ordinary operator.”

The two boiling water reactors at the Niigata plant are the same type as those that suffered core meltdowns at the Fukushima Daiichi complex, and no such reactors have cleared the authority’s safety screening since the Fukushima disaster. “

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Former chief of Fukushima probe criticizes reactor restarts — The Asahi Shimbun

” The leader of the Diet investigation into the 2011 Fukushima nuclear disaster blasted the Abe administration’s policies on restarting reactors, noting that proper evacuation plans are not in place.

“What are you going to do if a tsunami comes?” Kiyoshi Kurokawa, former chairman of the Fukushima Nuclear Accident Independent Investigation Commission, said at a June 12 meeting of the Lower House ad hoc committee for research of nuclear power issues. “How can you go (there) to rescue people if cars cannot move forward on roads?”

Kurokawa was referring to the restarts of the No. 4 and No. 3 reactors of the Takahama nuclear power plant in Fukui Prefecture in May and June.

The reactors cleared the Nuclear Regulation Authority’s safety standards that were established after the accident unfolded at the Fukushima No. 1 nuclear power plant in March 2011.

Prime Minister Shinzo Abe has said these standards are the strictest in the world.

But Kurokawa said, “I cannot accept such rhetoric.”

Kurokawa, also a professor emeritus of medical science at the National Graduate Institute for Policy Studies, was selected as chairman of a third-party advisory body established by the ad hoc committee in May.

He and other experts of the advisory body responded to questions at the meeting of the ad hoc committee on June 12.

Kurokawa also raised questions about the rules for personnel at the NRA, the country’s nuclear watchdog.

In January, Masaya Yasui, an official of the Ministry of the Economy, Trade and Industry, assumed the post of secretary-general of the NRA’s secretariat.

Kurokawa said he was concerned that an official of the economy ministry, which has promoted nuclear power generation, is now at the top of the secretariat.

Previously, a “no-return rule” was in place that prohibited employees of the NRA secretariat from returning to the economy ministry.

However, the Abe administration changed the rule to allow them to return to the ministry at bureaus not directly related to nuclear power generation.

Regarding the change, Kurokawa said, “The most important thing is to protect the no-return rule.” ”

by Shinichi Sekine, The Asahi Shimbun

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TEPCO must regain public trust to ensure Fukushima’s steady recovery — The Yomiuri Shimbun

” To ensure the steady recovery of Fukushima, Tokyo Electric Power Company Holdings, Inc.’s revised business plan must not be allowed to end up as pie in the sky.

TEPCO has compiled a new business plan. The utility has strengthened its steps to improve profitability to raise funds for costs including decommissioning reactors and compensation related to the March 2011 accident at its Fukushima No. 1 nuclear power plant. This is the second time the plan has been revised.

The total cost of cleaning up the nuclear accident has ballooned from ¥11 trillion to ¥21.5 trillion. TEPCO will shoulder ¥16 trillion of this amount over about 30 years. The ¥300 billion TEPCO spent in fiscal 2016 on compensation and reactor decommissioning costs will be increased to ¥500 billion annually.

TEPCO must boost its “earning power” to secure sufficient capital to meet those costs. Restarting reactors at TEPCO’s Kashiwazaki-Kariwa nuclear power plant in Niigata Prefecture will be essential for this. Each reactor brought back online will raise TEPCO’s earnings by ¥40 billion to ¥90 billion per year.

TEPCO is working to gradually restart all seven reactors at the Kashiwazaki-Kariwa plant from fiscal 2019. However, as things stand, high hurdles remain in its way. This is because even if a reactor passes safety screenings conducted by the Nuclear Regulation Authority, local government authorities also must agree to the reactors’ restart.

The recent revelation that TEPCO did not disclose data about the insufficient earthquake-resistance of the main quake-resistant building at the plant has further heightened local distrust of the utility. Niigata Gov. Ryuichi Yoneyama is not budging from his cautious stance because he believes safety measures at the plant are insufficient. “At the moment, I can’t agree to the restart” of the reactors, Yoneyama said.

An expert panel of the Economy, Trade and Industry Ministry also had some stinging criticism for TEPCO, saying it “has not earned enough trust from the public.”

Transparency vital

On June 23, TEPCO will switch to a new leadership lineup when Hitachi, Ltd. Honorary Chairman Takashi Kawamura becomes TEPCO’s chairman. Kawamura will need to work hard to regain trust in TEPCO so restarting its reactors can become a reality.

Strengthening cooperation with other electric utilities and launching new operations, such as gas retailing, also will be effective in solidifying TEPCO’s revenue base. Another issue that needs to be addressed is the overseas development of its thermal power business, in which TEPCO is pursuing integration with Chubu Electric Power Co.

The new plan stipulates TEPCO will “prepare a basic framework for cooperation with other companies” by around fiscal 2020, keeping in mind the Higashidori nuclear plant TEPCO is constructing in Aomori Prefecture.

TEPCO is considering working with Tohoku Electric Power Co., which has a nuclear power plant in that region. If this tie-up comes to fruition, it will be useful for establishing a stable supply of electricity. TEPCO’s intentions on this issue are understandable.

Other utilities that could become partners with TEPCO during a realignment in the industry hold deep-rooted concerns that cooperating with TEPCO could result in the costs of dealing with the nuclear accident being shunted on to them. TEPCO must lay the groundwork to dispel such concerns.

TEPCO and the government will, as soon as this autumn, establish a forum at which they can listen to the opinions of other electric utilities on steps to reorganize nuclear power and electricity transmission businesses.

Profits will be distributed based on the capital contribution ratio in a joint venture. Other companies should not be forced to shoulder the costs of the Fukushima nuclear accident. Highly transparent rules such as these will need to be drawn up. ”

by The Yomiuri Shimbun

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Nuclear taxes get new lease on life after Fukushima — Nikkei Asian Review

” OSAKA — Japanese prefectures with nuclear power plants are moving to ensure that utilities continue to shoulder a tax burden on reactors even as they are being decommissioned, dramatically raising the cost of cleanup efforts that can last 30 to 40 years.

Five nuclear reactors have been approved for decommissioning since the 2011 meltdowns at Tokyo Electric Power Co. Holdings’ Fukushima Daiichi plant. In each case, the host prefectural government has received approval from the ministry of internal affairs to apply a nuclear tax during decommissioning.

Ehime Prefecture in western Japan, home to Shikoku Electric Power’s Ikata nuclear power plant, has decided to change its ordinances by the fall to enable it to collect taxes on the plant’s No. 1 reactor. Shikoku Electric decided last May to decommission the reactor and has applied to the Nuclear Regulation Authority for approval.

The continued stream of tax revenue will help the Ehime government maintain evacuation routes and other facilities and safety measures until the reactor is fully dismantled and nuclear contamination risks eliminated.

Revenue generator

Of the 13 prefectures that host reactors, only Fukushima does not levy a nuclear fuel tax. Prior to the disaster, most prefectures did not collect these taxes during periods when reactors were shut down for periodic inspections or other reasons. The handful of reactors marked for decommissioning before the disaster have not had their taxes extended.

However, prolonged nuclear power plant shutdowns since Fukushima have prompted local governments to tax reactors based on output capacity even when they are idle to try to wring revenue out of idle units. The moves to extend taxes into decommissioning mark a further step.

Ehime Prefecture’s nuclear fuel tax generated 1.46 billion yen ($13.1 million) in revenues to the government in fiscal 2016, 264 million yen of which came from the inactive No. 1 unit at the Ikata power plant. The government seeks to collect at least half of the full amount during decommissioning.

Fukui Prefecture, home to three reactors approved for decommissioning, expects to collect an annual 370 million yen in revenues from its revised nuclear tax, which comes to half of the standard level.

With the country’s nuclear regulator imposing an in-principle 40-year operating limit on reactors, decommissionings are expected to continue at a pace of one to two units a year. The costs of taking a reactor out of service and rendering the site safe are generally estimated at tens of billions of yen. The tax burden could add up to billions of yen per reactor over the course of decommissioning.

“While the taxes may have benefits for communities, if electric rates go up as utilities’ costs rise, residents will also feel the burden,” said Tatsujiro Suzuki, an authority on nuclear energy policy at Nagasaki University. ”

by Nikkei Asian Review

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