JAPAN ATOMIC INDUSTRIAL FORUM, INC.

for Japanese

ATOMS in JAPAN

19 June, 2015

Sawa Advises Securing Long-term, Stable Financing for Nuclear Power

On June 16, at a meeting of the Japan Atomic Energy Commission (JAEC), Akihiro Sawa, senior executive fellow of the 21st Century Public Policy Institute, presented his basic thinking in regard to the use of nuclear power.

Mr. Akihiro Sawa

Saying that nuclear power was essential in Japan from an energy security viewpoint, Sawa pointed out the following as conditions for maintaining nuclear power over the medium and long terms:

  • The political conviction (national and municipal) that nuclear power is “especially” necessary for Japan.
  • Solid, long-term, stable financing and risk allocation (including a nuclear damage compensation system).
  • An institutional structure (including human resource development) that promotes technological renewal so as to continually generate innovative practices.

He described the current state of nuclear power in Japan as being on the “verge of crisis.” Comprehensive solutions, he said, include the following:

  • Attracting private funds by allocating risk among the public and private sectors, in order to realize the replacement of older nuclear power plants or the construction of new ones necessary to maintain nuclear technology and human resources
  • Making integrated efforts to solve the backend issues of decommissioning, interim storage, reprocessing, final disposal, and so forth.
  • Endeavoring toward a common understanding on regulatory philosophy and methodology, while rationalizing regulatory activities by revising the Law for the Regulation of Nuclear Source Material, Nuclear Fuel Material and Reactors (the so-called Reactor Regulation Law).

In response to a question about costs from JAEC Vice-Chairman Nobuyasu Abe, Sawa emphasized that the Power Generation Cost Verification Working Group only calculated the costs of power generation. In selecting nuclear power, however, the concept of “business risk premium” comes into play — the idea that the initial investment will have to be recovered consistently over a long period.

In that respect, he said that it was likely that nuclear power would lose to thermal power. Citing cases in the United Kingdom and the United States, he said there would be more incidents of decommissioning due to financing problems than those resulting from anti-nuclear movements.

Sawa also called for an institutional plan to secure compensation for damage equivalent to the current fully-distributed cost method, or limited liability for damage compensation, even after power system reform is implemented.

Finally, he repeated that restarting fully depreciated, existing NPPs was a good “shortcut” to lowering power rates.

Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

SNS facebooktwitter

NPPs Map

Video

Grossi on Fukushima: Marking a Decade Since the Accident

10 March, 2021
Grossi on Fukushima: Marking a Decade Since the Accident04:11

Recent News

17 September, 2021
NRA Permits Shimane-2 under New Regulatory Standards
14 September, 2021
IAEA Deputy Director General Evrard Visits Japan in Advance of Safety Review of ALPS-treated Water
1 September, 2021
Evaluation Report Issued by IAEA’s Review Mission to Fukushima Daiichi: First Visit since 2018
24 August, 2021
METI and IAEA Agree on Further Review Missions to Fukushima Daiichi
4 August, 2021
JAEA Restarts High-Temperature Engineering Test Reactor “HTTR”
2 August, 2021
Information about Fukushima Daiichi NPS Water Treatment
28 July, 2021
METI’s Committee Shows Rough Draft of Next Strategic Energy Plan
2 July, 2021
Mihama-3 Restarted After Decade-long Hiatus: First Restart in Japan of a Reactor Operating Beyond 40 Years
28 June, 2021
Mihama-3 Restarts after Decade-long Hiatus
25 June, 2021
New Canada-Japan Partnership Supports Greater Collaboration to Meet Climate Change Objectives and Net-zero Goals
24 June, 2021
METI Issues New Green Growth Strategy Through Achieving Carbon Neutrality
16 June, 2021
ANRE Sticks to “S+3E”
16 June, 2021
Japanese Cabinet Approves Environmental White Paper 2021
16 June, 2021
LDP Parliamentary Association to Reconfirm Position on Utilization of Nuclear Power
16 June, 2021
Fukui Governor Concerned about Deletion of Reference to “Maximum Utilization” of Nuclear Power
14 June, 2021
Working Group on Offshore Release of Treated Water Meets in Miyagi
14 June, 2021
NRA Considers Policy on Treating Slurry from ALPS, with Local Understanding Essential
11 June, 2021
Japanese Cabinet Approves Energy White Paper 2021
11 June, 2021
Government Omits Description of “Maximum Utilization” of Nuclear Power
9 June, 2021
MNF Hopes to Resume Fuel Production as Early as November
▲TOP