Sustaining Government Support In Japan

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Sustaining Government Support In Japan

• Masaomi KOYAMA
• Deputy Director
• Nuclear Energy Policy Planning Division
• Ministry of Economy, Trade and Industry, Japan

Technical Meeting / Workshop on Evaluation
Methodology for Nuclear Power Infrastructure
Development 10 - 12 December 2008, Vienna,
Austria
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Long-Term Government Commitment ?
INFRASTRUCTURE DEVELOPMENT PROGRAMME
Is Government Commitment/Involvement needed all
the time ?
TM/WS on Evaluation Methodology for Nuclear Power
Infrastructure Development, 10-12 December 2008
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GOVERNMENT COMMITMENT IN EARLY STAGE
TM/WS on Evaluation Methodology for Nuclear Power
Infrastructure Development, 10-12 December 2008
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Government Commitment in early stage (1)
Brief history of the development of NPP in early
stage 1954 National Nuclear Power Programme
started 1961 Construction (Concrete placing) of
the first NPP started 1965 The first NPP
connected to the grid (Commercial operation
started in 1966)
Budget 1954 First national budget for nuclear
power development allocated (approved by the
Diet) Legislation 1955 Atomic Energy Basic
Act was legislated ltBasic Lawgt Atomic Energy
Basic Act is the basic law for the peaceful use
of nuclear energy. This act restricts nuclear
energy to peaceful purposes only. The 3
principles, democratic, independent and public
has not changed for over 50 years. 1957 Act
for Regulation of Nuclear Source Material,
Nuclear Fuel Material and Reactors was
legislated ltLaw of Safety Regulationgt And other
related laws and government orders were
established before the first application for the
establishment of NPP.
TM/WS on Evaluation Methodology for Nuclear Power
Infrastructure Development, 10-12 December 2008
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Government Commitment in early stage (2)
Formation of Governmental Organisation 1955
Establishment of the Atomic Energy Commission
(Act for the Establishment of Atomic Energy
Commission) 1955 Nuclear development
department was established in the Cabinet Office
(Amendment Act for the Establishment of Cabinet
Office) Human Resource Development Fiscal Year
1954 Governmental Project on Human Resource
Development started Studying Abroad Programme,
Human Resource Development Programme at domestic
nuclear related organisations. Nuclear Energy
Development Basic Plan 1956 Atomic Energy
Commission established the first Long-Term Plan
for Research, Development and Utilization of
Nuclear Energy After the first Long-Term plan,
AEC published the plan around every 5 years.
TM/WS on Evaluation Methodology for Nuclear Power
Infrastructure Development, 10-12 December 2008
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Government Commitment in early stage (3)
Feasibility Studies for Siting of NPP 1963
Nationwide research for the feasibility of siting
started (Boring for geological survey, Climate
Survey) This result was used by electricity
utilities for siting NPPs. Aid for
Nationalisation of Reactor Technologies ltExamplegt
- Subsidies by Government - Government loan
programme by Japan Development Bank -
Preferential tax treatment for new technology
TM/WS on Evaluation Methodology for Nuclear Power
Infrastructure Development, 10-12 December 2008
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SUSTAINABLE COMMITMENT FOR NPP DEVELOPMENT
TM/WS on Evaluation Methodology for Nuclear Power
Infrastructure Development, 10-12 December 2008
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Examples of Past Governmental Actions
Government of Japan has acted for the development
of NPPs continuously since the NPP development
programme started. Following event are some
examples of Governmental Actions 1973
Introduced Public Consultation procedure in
nuclear development 1973 Established an
Information Disclosure Office 1974 Legislation
Act on the Development of Areas Adjacent to
Electric Power Generating Facilities 1978
Established the Nuclear Safety Commission 1981-85
National project on Advanced Light Water Reactor
(ABWR, APWR) 2001 Established the Nuclear and
Industrial Safety Agency
TM/WS on Evaluation Methodology for Nuclear Power
Infrastructure Development, 10-12 December 2008
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PRESENT GOVERNMENT SUPPORT FOR NPP DEVELOPMENT
TM/WS on Evaluation Methodology for Nuclear Power
Infrastructure Development, 10-12 December 2008
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Prime Ministers Addresses/Cabinet Resolutions

• Statement by Prime Minister
• ltExamplegt
• Prime ministers Speech (April 2008, JAIF Annual
  Conference, Tokyo)
• it is critical for us to strengthen the
  utilization of nuclear energy as a major source
  of power
• Cabinet Resolution
• ltExamplegt
• Framework for Nuclear Energy Policy (October
  2005)
• Economic and Fiscal Reform (June 2008)
• Action Plan for Building Low Carbon Society
  (July 2008)

TM/WS on Evaluation Methodology for Nuclear Power
Infrastructure Development, 10-12 December 2008
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Nuclear Energy Policy Governmental Commitment

• Basic Targets under the Framework for Nuclear
  Energy Policy (October, 2005)
• 1) Keeping the share of nuclear power generation
  at least 30-40 beyond 2030.
• 2) Steady promotion of the nuclear fuel cycle.
• 3) Introduction of the first commercial FBR in
  2050

TM/WS on Evaluation Methodology for Nuclear Power
Infrastructure Development, 10-12 December 2008
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Implementation of the Framework for Nuclear
Energy Policy

• Policy Packages under the Nuclear Energy
  National Plan (August 2006)
• 1. Ensuring investments in the construction and
  replacement of nuclear plants
• 2. Appropriate use of existing NPPs with
  assuring safety
• 3. Deploying strategy for acquiring natural
  resources
• 4. Steady promotion of the nuclear fuel cycle
  and strategic enhancement of related industries.
• 5. Early introduction of commercial FBR and its
  fuel cycle
• 6. Secure sufficient levels of technologies and
  human resources
• 7. Support international activities of Japans
  nuclear industry
• 8. Active participation in efforts to create an
  international framework for expanding the use of
  nuclear energy and ensuring non-proliferation
• 9. Building trust between government and local
  communities through detailed communication
• 10. Reinforcing the measures for radioactive
  waste disposal

TM/WS on Evaluation Methodology for Nuclear Power
Infrastructure Development, 10-12 December 2008
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Example of Specific Measures of Nuclear Energy
National Plan (1) Investments for Nuclear Power
Plants
- Reduction and dispersion of investment risks
- Reduction and leveling-out of the financial
burden of initial investments and
decommissioning - Promotion of broad-area
operations - Clear demonstration of the benefits
of nuclear power generation

• Specific Steps
• Reduction of backend risks a provisional
  reserve system for the 2nd reprocessing plant
• Reserve system for leveling out the future
  financial burden of costs related to spent fuels
  other than those handled by the Rokkasho plant.
• Provisional system until a detailed plan for
  reprocessing is fixed.
• Leveling-Out of Initial Investment Cost a
  pre-operation reserve system for the construction
  of new nuclear plants
• Reserve system for leveling-out the cost of
  capital depreciation of initial investment

TM/WS on Evaluation Methodology for Nuclear Power
Infrastructure Development, 10-12 December 2008
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Example of Specific Measures of Nuclear Energy
National Plan (2) Maintenance of Technology and
Human Resources

• - Launch of a joint public-private project for
  the development of a next-generation LWR
• - Creation of a nuclear industry with the scale
  and competitiveness suited to the global market
• Support for training of field engineers and
  transfer of skills to future generations
• Support for training of university researchers in
  the nuclear sector

• Specific Steps
• A feasibility study for a next-generation LWR
  was started under the fiscal 2006 budget as the
  first national nuclear project in 20 years.
• Assistance programmes for training of field
  engineers on maintenance work and for transfer of
  skills to future generations were started under
  the fiscal 2006 budget.
• The nuclear energy human resources programme
  was established under the fiscal 2007 budget.

TM/WS on Evaluation Methodology for Nuclear Power
Infrastructure Development, 10-12 December 2008
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Example of Specific Measures of Nuclear Energy
National Plan (3)Active Involvement in the
Global Framework
Basic Policy As a leader among non-nuclear armed
countries engaged in the peaceful use of nuclear
energy, Japan will continue to ensure strict
export control, follow safeguard arrangements and
implement measures to safeguard nuclear
materials. Japan will thus serve as a model
country to ensure nuclear non-proliferation and
the peaceful use of nuclear energy simultaneously.

• Specific Steps
• The Japanese government announces a proposal that
  supplements a nuclear fuel supply assurance
  scheme proposed by six countries in Sept. 2006.
  (The IAEA nuclear fuel supply registration
  system.)
• The Japanese government expressed support for the
  GNEP initiative immediately after its
  announcement in Feb. 2006.

TM/WS on Evaluation Methodology for Nuclear Power
Infrastructure Development, 10-12 December 2008
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Support for Local Community Development (1)
There are some support programmes for the
development local communities where power plants
sited. This shows a example of the programmes.
Establishment of the Special Account for
Promotion of Power Sources Development
?Background?
Because it is important to secure the stable
power supply with low price for our stable daily
life and economical development, it was required
to promote the power stations with scheduled
plan. However, the situation for locating the
power stations including nuclear power plants was
difficult in rapid growth of power demand in
1970s since the regional coordination had been
delayed.
?Measures?
To deal with above situation, three Acts for the
development power sources (Tax Act for Promotion
of Power Sources Development, Act on Special
Accounts for Electric Power Development
Acceleration Measures and Act on the
Development of Areas Adjacent to Electric Power
Generating Facilities ) were enacted in 1974 to
promote the power resource development, which new
tax system was set to impose based on power
capacity that electricity company sells and new
special account/budget for promotion of power
resource development.
TM/WS on Evaluation Methodology for Nuclear Power
Infrastructure Development, 10-12 December 2008
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Support for Local Community Development (2)
For the purpose of establishing operating power
station smoothly, Three Power related Acts Tax
Act for Promotion of Power Sources Development,
Act on Special Accounts for Electric Power
Development Acceleration Measures and Act on
the Development of Areas Adjacent to Electric
Power Generating Facilities were legislated in
1974. These Acts support the development local
community where power stations sited.
?One of the laws, Act on Special Accounts for
Electric Power Development Acceleration Measures,
was abrogated on April 1st 2007, and related
works have been taken to Act for Special Account.
TM/WS on Evaluation Methodology for Nuclear Power
Infrastructure Development, 10-12 December 2008
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Support for Local Community Development (3)
Subsidy for Measures to Power Station Located
Areas
For the development of regions with nuclear power
plants, subsidies are granted to 1) Prefectures
and municipalities where nuclear power plants are
sited, 2) Within calculated limits based on
energy output, the amount of power generated, and
population, etc., 3) For projects in the hardware
and software sectors for which these local
communities apply, based on their own initiative.
Related to nuclear location/operation (For Early
Stage of siting, Development Power station and
other purpose)
Tax for promotion of electric power development
Special Account for Energy (Promote for siting
power stations )
General account
Located prefectures
Neighboring municipalities
Sited municipalities
Related to NPP operation (For long-term
development)
TM/WS on Evaluation Methodology for Nuclear Power
Infrastructure Development, 10-12 December 2008
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Support for Local Community Development (4)
Example of Projects for the Subsidy for Measure
to Power Station Located Areas
Extensive projects are available to promote the
located area effectively.
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TM/WS on Evaluation Methodology for Nuclear Power
Infrastructure Development, 10-12 December 2008
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Support for Local Community Development (5)
Special Measures Act Designed to Promote Local
Economies where Nuclear Power Stations are Located

• Establish the Council for NPP development with
  related member of Cabinet leading with prime
  minister as chairman.
• After deliberation at the council, prime minister
  decides the area or its promotion plan.
• Based on the plan, the government implements the
  support measure like increasing the assistant
  rate with safety consideration in the area.

Process
It is important that nuclear power generation
make steady progress since it is superior to
provide stable supply and to measure global
warming. However, the situation over nuclear
power plant location has became difficult after
criticality accident at JCOs uranium
reconversion plant in 1999.
For stable energy supply in future, it is
necessary to take special measures to equip life
environment, industry infrastructure totally and
widely around the area of nuclear power plants
sited since nuclear power is essential for our
countrys electricity supply and need to promote
it. From these perspective, this law was approved
in 2000 and enacted in FY2001 to promote these
area.
TM/WS on Evaluation Methodology for Nuclear Power
Infrastructure Development, 10-12 December 2008
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Public Information Activities by Government
Public Acceptance Activities are crucial thing to
expand nuclear power
Build trust between government and local
communities - Create a visible presence in
communities where nuclear facilities are sited,
dealing sincerely with their particular concerns
in meetings at all levels. - Stand on a common
position of information recipients are very
important. - Enhance direct dialog with local
residents (in small face-to-face meetings, etc.).
- Ultimately the responsible persons at the
national level should make clear the governments
thinking and policy.
Concrete Measures - Information and opinion
exchange between central government and local
residents which lived near nuclear facilities
sited to understand accurately about peaceful use
of nuclear energy - Holding experience-based
exhibit, open seminars and workshops - Sending
experts to various kind of events to provide
accurate information about nuclear energy
TM/WS on Evaluation Methodology for Nuclear Power
Infrastructure Development, 10-12 December 2008
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Long-Term Government Commitment
INFRASTRUCTURE DEVELOPMENT PROGRAMME
Government Commitment/Involvement is needed all
the time
TM/WS on Evaluation Methodology for Nuclear Power
Infrastructure Development, 10-12 December 2008
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Thank You For Your Attention !