Japan Civil Nuclear Power
On May 31, 2023, the Japanese Diet passed into law a bill allowing nuclear reactors to operate beyond the current statutory limit of 60 years. The move is rooted in Japan’s goal of drastically reducing carbon emissions by 46 percent from 2013 levels by fiscal year 2030 and reaching carbon neutrality by 2050, and ensuring an adequate and reliable national energy supply. The law, entitled “The Law on Power Sources for Green Transformation and Decarbonization,” revises five energy-related laws including the Atomic Energy Basic Act (commonly known as “the constitution of civil nuclear power generation”).
Following Prime Minister Fumio Kishida’s surprising speech in August 2022, where he announced Japan’s nuclear comeback via the restart of the country’s nuclear reactors, the construction of new plants, and increased research and development of new reactor technologies (including small modular reactors), the Cabinet approved the “Green Transformation” bill in February 2023, which has now become law. The Government of Japan (GOJ) is next expected to approve its Annual Basic Policies for Economic and Fiscal Reform, commonly known as “large-bone policies”, which call for active usage of nuclear power plants.
These advances have been possible due to shifts in Japanese public opinion on nuclear energy. The Asahi Shimbun, a national daily publication known for its critical stance against Japan’s nuclear policy, reported that a national survey taken in February 2023 found that 51 percent of respondents were in favor of resuming operations of the country’s dormant nuclear plants. This is the first turnaround by the supporters of restarts in opinion polls since the triple meltdown at the Fukushima No.1 Nuclear Power Station in 2011 and marks a significant inflection point.
During the last 12 years, the Japanese nuclear industry lost 4,000 nuclear engineers and the size of the industry dropped to $15.1 billion. Nuclear power dropped from providing 30 percent of the nation’s power to just 7 percent. The Japanese Ministry of Economy, Trade and Industry (METI) is exploring opportunities for Japanese, U.S., U.K., and French manufacturers to collaborate to create new reactor designs for Japan, as well as to improve nuclear energy safety. As acknowledged by The Japan Nuclear Safety Institute (a regulatory organization established by the Japanese nuclear industry), there are shortcomings in the physical and cyber security of Japan’s nuclear plants.
As a result of these developments, U.S. reactor and nuclear-related technology companies will see increased opportunities in Japan. CS Japan’s network includes, inter alios, procurement managers of the Japanese electric utilities, as well as key private sector players.
For additional information, please contact office.tokyo@trade.gov and refer to the nuclear sector.