Japan’s Nuclear Industry Seeks Government Support for New Reactor Construction

Nuclear Industry Calls for Enhanced Support

Japan’s nuclear power sector is seeking greater government backing for new reactor construction, including through state-run capacity auctions, according to industry reports. The push comes under the administration of newly elected Prime Minister Sanae Takaichi, who has publicly supported nuclear energy revival as crucial to Japan’s energy security.

Current Nuclear Landscape

Industry data indicates that only 14 of the 54 nuclear plants operating before the 2011 Fukushima disaster have resumed operations. While much focus has been on restarting idled reactors, with the government recently extending operating lifetimes from 40 to 60 years, just one new plant is reportedly in the planning stages. Analysts suggest this limited progress highlights the challenges facing Japan’s nuclear ambitions.

Proposed Support Mechanisms

Hideki Masui, president of the Japan Atomic Industrial Forum (JAIF), stated that greater support for new reactor construction should be made available through the long-term decarbonised capacity auction (LTDA) scheme. “We should include a scheme into the LTDA which allows some kind of a fund recovery even during construction from an early stage,” Masui told Reuters. The construction process for new reactors in Japan reportedly takes approximately two decades., according to related news

Regulatory and Financing Challenges

Sources indicate that Japan currently lacks safety regulations for next-generation reactors, creating uncertainty for potential operators. Industry representatives are reportedly seeking regulatory predictability along with financial support mechanisms. According to the reports, operators are particularly concerned about financing challenges given the lengthy construction timelines and substantial capital requirements.

Recent Developments and Future Projections

In a significant development, Kansai Electric Power, Japan’s leading nuclear operator, announced in July that it was conducting surveys to build a new reactor in western Japan. Industry analysts suggest this represents the first concrete step toward new reactor construction since the Fukushima disaster.

Authorities have reportedly granted initial restart permits to four additional idled reactors, while eight more are undergoing safety checks. Sources indicate that another ten reactors could potentially apply for restart approvals in the near future.

Energy Mix Targets

Japan aims to increase nuclear power’s contribution to its electricity mix to 20% by 2040, up from less than 10% currently. This ambition comes as power demand from data centers reverses years of declining electricity consumption. “Theoretically, I think Japan can achieve its nuclear goal of 20% in 2040 with more than 30 reactors operating,” Masui stated in the report.

Broader Context

The nuclear industry’s push for enhanced support occurs against the backdrop of Japan’s broader energy security concerns and decarbonization goals. With growing electricity demand and climate commitments, analysts suggest nuclear power represents a key component of Japan’s long-term energy strategy, though public sentiment and safety concerns continue to present significant challenges.

References

• https://www.reutersagency.com/en/licensereuterscontent/?utm_medium=rcom-artic…
• http://en.wikipedia.org/wiki/Nuclear_power
• http://en.wikipedia.org/wiki/Japan
• http://en.wikipedia.org/wiki/Sanae_Takaichi
• http://en.wikipedia.org/wiki/Fukushima_nuclear_disaster
• http://en.wikipedia.org/wiki/Energy_security

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