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Nuclear Energy in Japan IN-DEPTH: NUCLEAR ENERGY IN JAPAN UPDATED JUNE 2016 INTRODUCTION electricity-generating equipment in order to meet electricity demands.3 According to the The March 2011 earthquake, tsunami and the World Nuclear Association, Japan currently resulting partial reactor meltdown at Tokyo relies on imports for approximately 84% of Electric Power Company’s (“TEPCO’s”) its primary energy needs, which, according Fukushima Daiichi Power Station resulted to the finance ministry, cost the country in heightened scrutiny placed on the use approximately ¥24 trillion (roughly $250 of nuclear energy and the safety of nuclear billion) in 2012.4 facilities in Japan. The event was rated by the International Atomic Energy Agency as After halting all nuclear operations in 2012, a Level 7 “major accident,”1 the highest level the Japanese government asked businesses on the International Nuclear and Radiological and households to cut their electricity Event Scale, and generated considerable usage by at least 15% in order avoid possible debate regarding the safety and desirability blackouts. However, meeting energy of nuclear power production. demands during the summer months, when electricity usage peaks, brought increased Given the increased scrutiny placed on the concern that energy needs would not production of nuclear energy in Japan, Glass be met. In response, in June 2012, then- Lewis recommends that shareholders look Prime Minister Yoshihiko Noda delivered a closely at proposals regarding companies’ speech in which he stated that he wanted nuclear operations, as mismanagement of to resume operation of Kansai Electric’s these operations can have significant health, Ohi reactors 3 and 4. According to Noda, policy, safety, environmental, regulatory and “[c]heap and stable electricity is vital. If all legal implications. the reactors that previously provided 30% NUCLEAR ENERGY IN JAPAN of Japan’s electricity supply are halted, or 5 The Nuclear Energy Institute, a policy kept idle, Japanese society cannot survive.” organization for the nuclear technologies According to Kinya Shintani, the chairman of industry, states that as of April 2016, Japan the Ohi town assembly, the local economy maintains 43 nuclear reactors with 40,290 and employment were significantly affected MW of nuclear capacity. Japan has the by the halted nuclear power generation. third-highest nuclear capacity by country, Shintani stated that “[l]argely understanding behind the United States and France. Prior the necessity of nuclear power and taking to the 2011 earthquake, Japan relied on into consideration the residents’ opinions as nuclear power for 30% of its electricity, well as the impact on consumers’ livelihoods and had planned to expand that share to and the economy, we decided to agree to 6 nearly 50% by 2030 through the creation a restart.” On June 17, 2012, Noda declared of 14 new nuclear reactors. However, in the that, following a meeting with several Cabinet wake of the Fukushima Daiichi disaster, ministers, the Ohi plant could be operated then-Prime Minister Naoto Kan publicly safely and subsequently approved a restart 7 abandoned these expansion plans in May for its reactors. In July 2012, Kansai Electric 8 2011. 2By May 2012, all remaining nuclear resumed operation of these reactors, but reactors were temporarily idled, leaving in September 2013, both reactors were Japan with no clear nuclear energy policy 3 Phred Dvorak, Eleanor Warnock. “Japan to Take Its Last and without atomic power for the first time Reactor Offline.” Wall Street Journal. May 4, 2012. 4 Aaron Sheldrick, Osamu Tsukimori. “Japan Faces Higher Fuel Bill in over 40 years. This reduced generation as Nuclear Shutdown Enters Third Year.” Reuters. March 13, 2013. led some utilities companies to restart 5 Roland Buerk. “Japan ‘Must Restart’ Two Nuclear Reactors, Noda Warns.” BBC News. June 8, 2012. older thermal-powered plants and to lease 6 Linda Sieg, Yoko Kubota. “Japan Town OKs Reactor Restarts.” China Daily. May 15, 2012. 1 Shinichi Saoshiro, Mayumi Negishi. “Japan Raises Nuclear Crisis 7 Jacob Adelman, Yuji Okada. “Noda Ends Japan Nuclear Freeze, to Same Level as Chernobyl.” Reuters. April 12, 2011. Risking Backlash at Polls.” Bloomberg. June 17, 2012. 2 Martin Fackler. “Japan to Cancel Plan to Build More Nuclear 8 Osamu Tsukimori, Aaron Sheldrick, Linda Sieg. “Japan Restarts Plants.” New York Times. May 10, 2011. First Reactor Since Fukushima Crisis.” Reuters. July 1, 2012. 1 again shut down for regular maintenance decommission and ongoing litigation. and for a regulatory assessment.9 In May Further, the Takahama shutdown has been 2014, the Fukui District Court ruled that the particularly detrimental to the industry Ohi reactors could not be restarted on the because the court in the district where the grounds that structural deficiencies in the reactor operates had lifted its injunction reactors’ safety measures would violate the against the plant, showing how plaintiffs can “fundamental rights to life” of those who live try different judges due to the wide swath within 250 km of the plant.10 The same court of areas affected by reactors.18 In addition, ruled in May 2015 that Kansai Electric could on April 14, 2016, Japan experienced seismic not restart its two reactors at its Takahama tremors, including a 7.3 earthquake, leading plant based on similar safety concerns.11 In to renewed calls for closure at the remaining December 2015, the Fukui District Court Sendai reactors. Approximately 100 mayors overturned this injunction, allowing Kansai and town heads belonging to Mayors for Electric to restart its Takahama reactor No. a Nuclear Power Free Japan have publicly 3 in January 2016 and announce its plans to urged the central government to reevaluate restart reactor No. 4 in late February 2016.12,13 its earthquake standards and propose that However, a radioactive water leak at the No. the government should grant localities within 4 reactor was reported in February 2016, 30 km of a nuclear plant the legal authority and the reactor was restarted that month to approve or reject reactor restarts.19 but shut down after only a few days due Despite Japan’s nuclear power capacity after a problem with a generator triggered currently being limited to two reactors, it an alarm which caused an automatic does not appear that there is an immediate 14,15 shutdown. Additionally, in March 2016, need for increased nuclear production in the Otsu District Court issued an injunction order to meet the country’s energy needs. to halt Kansai Electric’s No. 3 and No. 4 As of April 2015, a government report reactors, stating the firm failed to show suggested that Japan will have enough the public that those reactors were safe for electricity supply to meet peak demand 16 operation. The ruling, which required an during the summer months without the immediate halt in generation, resulted in the need to start any of its 48 remaining idled largest drop in Kansai Electric’s share price nuclear reactors. The report stated that 17 since October 1987. Japan’s regional utilities should be able to The Nuclear Energy Institute’s Japan maintain a 3% or greater reserve margin in Nuclear Update, as of May 2016, states supply capacity on average, even with the that Sendai 1 and 2 are the only reactors potential for an extremely hot summer, with currently operating, with other reactors necessary power-sharing between utilities in various stages of prestart inspections, to ensure adequate regional supplies and continued conservation efforts. This could 9 ”Japan Shuts Down Only Operating Nuclear Reactor for be due to the fact that Japan has made Maintenance as Fukishima Crisis Worsens.” New York Daily News. September 15, 2013. concerted efforts to finance clean energy. 10 “Reflect on Fukui Nuclear Ruling.” The Japan Times. According to an annual Pew Charitable May 23, 2014. 11 “Japan Court Upholds Nuclear Power Plant Injunction.” Trusts report, the most recent of which was Phys.org. May 19, 2015. published in April 2014, Japan experienced 12 Kentaro Hamada. “Japan Court Clears Way to Restarting Kansai Electric Nuclear Plants.” Reuters. December 24, 2014. the fastest clean energy investment 13 Eric Johnson. “Third Reactor Restart Spurs Fears Over Shaky growth in the world in 2013, increasing its Kansai Evacuation Plans.” Japan Times. January 29, 2016. 14 “Radioactive water leak found at Takahama No.4 reactor, investments by 80%, behind only China and posing restart delay.” The Japan Times. February 21, 2016. the United States. The report also shows a 15 “Takahama Reactor Automatically Shuts Down After Alert: Kansai Electric.” Japan Times. February 29, 2016. 18 Robin Harding. “Japan’s Nuclear Restart Stymied by Courts.” 16 Mayumi Negishi. “Japanese Court Orders Shutdown of Nuclear Financial Times. April 6, 2016. Reactors.” The Wall Street Journal. March 9, 2016. 19 Eric Johnston. “Despite Assurances, Quakes Prompt Calls 17 “Kansai Electric plunges after reactor halt” The Financial to Switch off Japan’s Nuclear Reactors.” The Japan Times. Times. March 9, 2016. April 18, 2016. 2 lack of diversification, as over 93% of Japan’s This shift also places the NRA under the clean energy investments are in solar power. regulation of the Environment Ministry.24 In addition, 70% of Japanese respondents in Under this reorganization, Japan’s Atomic regular polls want to end nuclear power in the Energy Commission, established under the country, with most supporting the effort led Atomic Energy Basic Law of 1955, continues by the Democratic Party of Japan to phase in its role of planning overall strategy for the out nuclear power by the 2030s.20 However, use of nuclear energy in Japan. Japan has also faced noted difficulties in In January 2013, the NRA approved more establishing a renewable infrastructure to rigorous safety standards for Japanese replace nuclear power, including low grid nuclear power plants that specifically capacity, a deregulated energy market and addressed design-basis standards, severe 21 construction inefficiencies.
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