To advance the policy direction laid out in the Seventh Strategic Energy Plan\u2014namely, the \u201cmaximum utilization of nuclear power\u201d\u2014the government aims to concretize and expand financial support measures at this timing. By leveraging the government\u2019s creditworthiness, the scheme is intended to stimulate active private-sector investment and secure a stable supply of decarbonized power.<\/p>\n
Under the new framework, loans will be provided through the financial functions of the Organization for Cross-regional Coordination of Transmission Operators, Japan (OCCTO), a government-authorized entity. The scheme envisions co-financing arrangements between private financial institutions and public bodies. OCCTO already has experience providing financial support for transmission infrastructure and plans to strengthen its lending capacity by increasing staff. In parallel with the scheme\u2019s launch, the government also plans to pursue amendments to relevant laws, including the Electricity Business Act.<\/p>\n
New nuclear power plants require enormous investment and take many years to move from planning to commercial operation, meaning operators face long payback periods. At the same time, power utilities\u2019 earnings are affected by rising fuel and materials costs, as well as additional expenditures required for enhanced safety measures. As a result, financing nuclear projects solely through private capital exposes lenders to significant risks. In many countries, governments provide loan guarantees and other forms of public support to create a viable investment environment\u2014an arrangement that Japan has been under pressure to develop as well.<\/p>\n
The new public financing scheme represents one response to these challenges, reinforcing government support from a financial perspective to ensure a stable supply of decarbonized power.<\/p>\n
At a press conference on the same day, Minister of Economy, Trade and Industry Akazaka Ryosei stated:<\/p>\n
\u201cWith electricity demand expected to grow, we will take a concentrated look at whether private financing alone is sufficient for large-scale investments in decarbonized power sources and transmission networks. We intend to deepen discussions on institutional frameworks and legal amendments that make effective use of the government\u2019s creditworthiness.\u201d<\/p><\/blockquote>\n
He emphasized the government\u2019s view that public involvement is indispensable to securing and strengthening baseload power sources, including nuclear energy.<\/p>\n","protected":false},"excerpt":{"rendered":"
To advance the policy direction laid out in the Seventh Strategic Energy Plan\u2014namely, the \u201cmaximum utilization of nuclear power\u201d\u2014the government aims to concretize and expand financial support measures at this timing. By leveraging the government\u2019s creditworthiness, the scheme is intended to stimulate active private-sector investment and secure a stable supply of decarbonized power. Under the […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1,8,7],"tags":[1253,33,1421,708,114,1422,724,1420,692,32,319,186,116],"class_list":["post-7702","post","type-post","status-publish","format-standard","hentry","category-news","category-policies","category-regulation-safety","tag-7th-strategic-energy-plan","tag-anre","tag-baseload","tag-decarbonization","tag-distribution","tag-electric-system-reform","tag-energy-policy","tag-infrastructure-investment","tag-japan","tag-meti","tag-occto","tag-strategic-energy-plan","tag-transmission"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.jaif.or.jp\/en\/wp-json\/wp\/v2\/posts\/7702","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.jaif.or.jp\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jaif.or.jp\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jaif.or.jp\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jaif.or.jp\/en\/wp-json\/wp\/v2\/comments?post=7702"}],"version-history":[{"count":2,"href":"https:\/\/www.jaif.or.jp\/en\/wp-json\/wp\/v2\/posts\/7702\/revisions"}],"predecessor-version":[{"id":7704,"href":"https:\/\/www.jaif.or.jp\/en\/wp-json\/wp\/v2\/posts\/7702\/revisions\/7704"}],"wp:attachment":[{"href":"https:\/\/www.jaif.or.jp\/en\/wp-json\/wp\/v2\/media?parent=7702"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jaif.or.jp\/en\/wp-json\/wp\/v2\/categories?post=7702"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jaif.or.jp\/en\/wp-json\/wp\/v2\/tags?post=7702"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}