FOCUS: Kansai Electric to Conduct Surveys for New Nuclear Reactors

Osaka, Oct. 10 (Jiji Press)–Kansai Electric Power Co. will launch full-scale assessments on the feasibility of constructing new nuclear reactors in exchange for decommissioning aging units. In July, the Osaka-based utility announced plans to carry out geological and other surveys in the town of Mihama, Fukui Prefecture, home to its Mihama nuclear power plant, as groundwork for next-generation reactors. With local consent, the company aims to begin the surveys in November. The initiative is the first concrete step in Japan toward new reactor construction linked to decommissioning since the March 2011 accident at Tokyo Electric Power Company Holdings Inc.’s Fukushima No. 1 plant, triggered by a 9.0-magnitude earthquake and tsunami. All of the country’s nuclear power plants were shut down after the March 2011 disaster, but under the new regulatory standards 14 reactors have been restarted so far. Seven of them are owned by Kansai Electric. In February this year, the government revised its basic energy plan, removing the phrase that Japan “will reduce its dependence on nuclear power as much as possible,” which had been included after the March 2011 nuclear disaster, and signaling a shift toward maximizing the use of nuclear energy. It also set a target of raising nuclear power’s share in the electricity mix to about 20 pct by fiscal 2040, up from just under 10 pct currently. In June, the green transformation decarbonized power sources law fully came into force, aiming to promote decarbonization while ensuring a stable electricity supply. The law maintains the general rule that reactors are decommissioned after 40 years, with possible extensions of up to 60 years for units that pass regulatory safety inspections. It also allows operations beyond 60 years by excluding periods when reactors are offline, primarily for safety reviews, from the operating-time calculation. The government’s renewed push for nuclear power comes amid a surge in the construction of facilities with high electricity consumption, notably data centers and semiconductor plants, driven by the rapid adoption of artificial intelligence. In the Kansai western Japan region–the core service area of Kansai Electric–telecommunications giants SoftBank Corp. and KDDI Corp. plan to build data centers on the site of Sharp Corp.’s former factory in Sakai, Osaka Prefecture. Kansai Electric began geological and related surveys in Mihama in 2010 as a first step toward rebuilding the aging No. 1 reactor at the Mihama plant. The work was suspended after the March 2011 earthquake and tsunami. In the aftermath, the company decided to decommission the Mihama No. 1 and No. 2 reactors, as well as the No. 1 and No. 2 units at its Oi nuclear plant. Meanwhile, the Mihama plant’s No. 3 reactor is nearing its 50th year of operation. Of the seven reactors Kansai Electric has restarted, the No. 1 and No. 2 units at the Takahama plant are even older. The Takahama No. 1 reactor, which began operating in 1974, is the oldest active reactor in Japan. Although it was offline for about 12 years for safety reviews and other reasons, and may therefore be allowed to operate for roughly two more decades, its eventual decommissioning is coming. Like Mihama, the towns of Oi and Takahama in Fukui Prefecture are located just north of the Kansai region and within Kansai Electric’s service area. At a news conference in July, Kansai Electric President Nozomu Mori emphasized the need to build new nuclear reactors. “Electricity demand is likely to rise sharply due to the rapid growth of data centers and semiconductor factories. In this resource-poor country, nuclear power is essential,” he said. At the same time, Mori noted that Kansai Electric would not base any construction decision solely on survey results. He suggested the company intends to weigh a range of factors, including the development status of next-generation reactors and whether the business environment can support large-scale investments. Mihama Mayor Hideki Toshima met with visiting Kansai Electric executives in August and expressed his willingness to approve the surveys, saying, “We will allow (the company) to proceed with (the surveys) while securing local support.” Toshima said many town assembly members and other local stakeholders have also voiced support. He added that there has been certain progress on developing evacuation routes for the Mihama nuclear plant, in line with national policy, including the allocation of related funding. Kansai Electric plans to finish its initial site-screenings for new reactors, as part of geological and related surveys, by March 2027. After completing more detailed studies through around 2030 and assessing financing options, the company will decide whether to go ahead with constructing next-generation reactors. END [Copyright The Jiji Press, Ltd.]