Japan’s Nuclear Energy Policy

Ministry of Economy, Trade and Industry

Apr. 2018

1. Current Status of Nuclear Energy in Japan

2. Three Key Challenges- Challenge to International Market - Challenge to Decommissioning - Challenge to Nuclear Innovation

“Strategic Energy Plan” (Cabinet Decision in 2014. According to law, it will be revised in early 2018.)I. Nuclear power is an important base-load power source as a low carbon and quasi-

domestic energy source, contributing to stability of energy supply-demand structure.II. Dependency on nuclear power generation will be lowered to the extent possible by energy

saving and introducing renewable energy as well as by improving the efficiency of thermal power generation, etc.

III. The basic policy of Japan is to promote a nuclear fuel cycle that reprocesses spent fuelsand effectively utilizes the plutonium retrieved, from the viewpoint of effective utilization ofresources and reduction of the volume and harmfulness of high-level radioactive waste.

2030

Renewable energy 22~24% (approx.)

LNG 27% (approx.)

Coal26% (approx.)

Oil 3% (approx.)

LNG 27%

Oil 12%

Coal 24%

2001～2010 （average）

Nuclear power 27%

Renewable energy 11%

Nuclear power 22~20% (approx.)

【Source】 extracted (preliminary translation) from documents released in the 11th Long-term Energy Supply and Demand Outlook Subcommittee, Advisory Committee for Natural Resources and Energy, METI

Energy conservation

* Geothermal 1.7~4.6 %Biomass 3.7~4.6 %Wind 1.7 %Solar 7.0 %Hydro 8.8~9.2 %

2010 2013 2030Nuclear 29% 1% 20~22%Renewable* 10% 11% 22~24% Thermal 61% 88% 56%

Target of electricity generationBased on “Strategic Energy Plan”, METI approved “Long-term Energy Supply and Demand Outlook” (so-called Energy Mix) in 2015.

Strategic Energy Plan and Energy Mix as of 2030

2

In Operation Passed NRA Review

Under NRAReview

To be Determined

Decided toDecommission

PWR 7 5 4 1 7BWR 0 2 8 15 11(1 GCR)

3

Tokyo EPCOFukushima Daiicih

Hokkaido EPCOTomari

Tohoku EPCOOnagawa

Chubu EPCOHamaoka

JAPCTokai/Tokai Daini

Tokyo EPCOKashiwazaki Kariwa

Kyushu EPCOSendai

Chugoku EPCOShimane

Hokuriku EPCOShika

JAPCTsuruga

Kansai EPCOTakahama

Kansai EPCOMihama

Tohoku EPCOHigashidori

Tokyo EPCOHigashidori

Kyushu EPCOGenkai

Kansai EPCOOhi

Tokyo EPCOFukushima Daini

J-POWEROhma

110３５

110３４

110３２

110３０

138１３

52３３

83１６

139

1107878787846

17

8454

110３２

110２７

110２４

110２３

110２７

89３３

56３７

137

83４１

54２４

36

34 50

56

46

118２４

118２０

83４３

83４２

89３２

110２９

PWR BWR ABWR

Capacity(10MkW)Age

As of 3rd, Apr, 2018

Shikoku EPCOIkata

57 89２３

136２１

136２０

58２８

58２６

91８

121１２

116３１

118２６

118２５

82２９

110３０

110３９

83２２

110１２

138

114２４

87３３

87３２

*Ikata Unit 3 and Sendai Unit 1 are under the periodic inspection. Genkai Unit 3 is under the pre-service inspection

118 118

57

Restart of Nuclear Power Plants in Japan

4

Chugoku EPCOShimane③(ABWR , 1,373MWe)【under construction】93.6% completed Tokyo EPCO

Higashidori①(ABWR , 1,385MWe)

【under construction】9.7% completed

J-POWEROhma

(ABWR , 1,383MWe)【under construction】

37.6% completed

Under Construction Projects

Geological disposal repository

Next reprocessing

plant

（ 5.5~6.5tPuf/y Plutonium usage by 16 to 18 MOX fuel load nuclear reactors *Including 1.1tPuf/y plutonium usage by Oma Nuclear Power Plant ）

MOX fuel from foreign reprocessors

Plutoniumquantity possessedby electric power supplier（storage in UK and France）

approx.24.5tPuf

Fast Breeder Reactors(FBR)

MOX Fuel

Storing:approx.15,000tU

Storage capacity : approx.21,000tU

NuclearPowerPlant

(Spent fuel pool, etc.)

Waste (from Spent Fuel

Reprocessing) returned fromUK and France

Vitrified Waste Storage Center

Sub-surface disposaltest cavern

Low-Level Radioactive Waste Disposal Center

Storing : approx.2,970tUStorage Capacity : 3,000tU

JNFL: Japan Nuclear Fuel LimitedMOX: Uranium-plutonium mixed oxide

Mutsu：5000tU

Study on implementation of sub-surface disposal for waste from decommissioning (2002FY~)

Spent Fuel

JNFLRokkasho

Reprocessing Plant

Off-site storage facility(Spent Fuel Interim Storage)

MOX Fuel Fabrication Plant

Electric power supplier（Tokyo Electric Power co./Japan Atomic Power co.）

Oma Nuclear Power Plant(utilized fully load MOX fuel)

Waste from operation

Waste from operationand decommissioning

Vitrified Waste

Spent Fuel

JNFL

Plutonium over 4tPuf/y

Current Status of Nuclear Fuel Cycle

Plan of Operation: FY 2022 (the 1st half)

Plan of Operation: FY 2021 (the 1st half)

Plan of Operation: FY 2018 (the latter half)

5

1. Current Status of Nuclear Energy in Japan

2. Three Key Challenges- Challenge to International Market - Challenge to Decommissioning - Challenge to Nuclear Innovation

●In 2012, from its parent companies (E.ON and RWE), HITACHIpurchased all stocks of HORIZON, which has a plan to constructnew nuclear power plants in the UK such as Wylfa (1,350MW, 2reactors) and Oldbury (1,350MW, 2 reactors).

HITACHI plans to construct ABWRs through HORIZON. In Dec 2013, HORIZON agreed with HM Treasury on cooperation

regarding external financing of the building for new NPPs. Wylfa

Sellafield

Heysham

Hinkley Ponit C

Sizewell

Bradwell

Hartlepool

Oldbery

make proactive contributions to improvement of nuclear safety, peaceful use of nuclear power, nuclear non-proliferation and nuclear security in the world, by sharing the experiences and lessons learnt from the TEPCO's Fukushima nuclear accident.

Akkuyu

Turkey

Sinop

In 2013, Japan obtained the exclusive negotiating right for Sinop NPP (4 ATMEA1 reactors are planned).

In 2015, Inter Governmental Agreement (IGA) entered into force.

Feasibility Study for detailed construction plan has been undertaken by MHI.

UK: HORIZON Project

Turkey: Sinop Project

Contribution to Peaceful Use of Nuclear Power in the World

7

Nuclear Projects in UK

(1) France-China Coalition (EDF, CGN) and Japan have own projects.(2) Hitachi (HORIZON) plans to build two ABWRs in Wylfa, Wales.(3) UK strongly expects the success of Hitachi PJ. The PJ is important for Japan in

terms of maintenance of global competitiveness of JP nuclear tech & HRs.

Company Site Reactor type Unit Status

France-China

NNB GenCo

HinkleyPoint C

EPR(1,600MW) 2

<Total cost> ￡18.2bn<PPA> ￡92.50MW/h<Investment>EDF66.5%, CGN33.5%

Under construction(start operation in 2025)

Sizewell EPR tbd EDF80%, CGN20%

Bradwell Hualong1(Chinese) tbd EDF33.5%, CGN66.5%

Toshiba NuGen Moorside tbd 3 -Toshiba will sell the PJ-First refusal right to KEPCO

Hitachi

Horizon Nuclear Power

Wylfa ABWR(1,350MW) 2

Planned(start operation in middle 2020s)

Oldbery ABWR tbd Planned

Wylfa

Sellafield

Heysham

Hinkley Ponit C

Sizewell

Bradwell

Hartlepool

Oldbery

8

2012 HITACHI purchased all stocks of HORIZON

2013 Apply for GDA (Generic Design Assessment) ofABWRs in UK2017 approved By ONR and EA

１．HORIZON chronology <Wylfa map & site image>

9

2．Wylfa Project Schedule

2017 Apply for Granted SL (Nuclear Site License)

2020 Start construction (tentative)mid 2020s： Commercial Operation (tentative)

HITACHI plan to construct ABWRs at Wylfaand Oldbury1350MW × 2-3 reactors for each siteSame design as Tokyo EPCO “Kashiwazaki

Kariwa unit 6”

HORIZON Project

6.2 GW → 15 GW (2027)

The Agreement between India and Japan for peaceful uses of nuclear energy came in to effect in July, 2017. Based on the joint statement between both Prime ministers Abe and Modi, Working Group to strengthen bilateral nuclear cooperation was established.

Kakrapar 1、2(PHWR)Kakrapar 3、4(PHWR)

Tarapur 1、2(BWR)

Kaiga 1～4(PHWR)

Tarapur 3、4(PHWR)

Narora 1、2(PHWR)

Rajasthan 1～6(PHWR)

Rajasthan 7、8(PHWR)

Madras 1、2(PHWR)

Kovvada

Kudankulam 3～6(VVER-1000)

Chhaya-Mithi Virdi

（ＷＨ）

In Operation（22 reactors）

Under Construction（5reactors）

Planned

Kudankulam 1,2(VVER-1000)

Kalpakkam (PFBR)

Jaitapur 1、2 (EPR)

Nuclear Projects in India

Nuclear Capacity Target

Gorakhpur 1、2(PHWR)

Working Group between Japan and India

<Joint Statement between Japan and India> September, 2017

March, 2018 Kickoff Meeting (Nuclear Liability Law)

The two Prime Ministers expressed satisfaction at the entry into force of the Agreement between the Government of Japan and the Government of the Republic of India…. They looked forward to a working group to strengthen bilateral cooperation in this field …

10

Status of Nuclear Power in ASEAN Countries ASEAN’s nuclear power development: INDONESIA as the leader; MALAYSIA and PHILIPPINES

precede with concrete steps. Partners: overwhelmingly RUSSIA, and CHINA, with long-standing supports incl. R&D and capacity building.

Strong cautiousness on China’s influence. Great expectation to Japan as well.

Malaysia• General election will be held on May 9.• China practically starts its entry in

surrounding business, incl. thermal power.

Viet Num• NPP plan halted.

Expecting resumption.• HR devt with Russia

(eg. test reactor devt, dispatch of experts)

Philippines

Indonesia• ASEAN countries pay attention to Indonesia’s move.• HTGR devt with China’s supports. Recently LWR devt as well.• Russia & China selling float-type or shipboard reactors.

• Duterte has started considering construction of NPP with Russia’s supports, aiming to supply electricity to poor islands

Thailand• MOC in HR devt with CNNC in Sep 2017.• Equity participation of Thailand’s utility in

CGN’s NPP in China in Dec 2015. ( over 100 workers could be dispatched.)

Thailand5.5

Malaysia0.3

Indonesia

1.6

Viet Num0.3

Philippines

1.3

JP utilities develop business in SE Asia (thermal power/ IPP) (total in capacity of each PJ (only JP shares), incl. under construction/planned (unit: GW))

11

1. Current Status of Nuclear Energy in Japan

2. Three Key Challenges- Challenge to International Market - Challenge to Decommissioning - Challenge to Nuclear Innovation

reactors

Decommissioning already decided Other reactors

３＋９BeforeThe Earthquake

AftertheEarthquake

40 years Operation

If life extension is approved,60 years maximum

Decommissioning caused by Accident

<Three Challenges for Decommissioning>Negative impact on

local economy(employment, tax revenue etc.)

Negative impact on balance sheet of the operators

Waste disposal(rule-making etc.)

Decommissioning of Nuclear Power Plants in Japan

Fukushima-Daiichi#1 - #6 +

６ reactors

International Workshop on Decommissioning (30, June, 2017)

JPN-U.S. Forum on Decommissioning （7, August, 2018, in Tokyo） ←coming!

sharing lessons learned in strategic planning, management oversight, and stakeholder engagement for further Japan-U.S. commercial cooperation in these areas

learning more about the various efforts from the experienced countries(U.S., UK, France, etc.)

13

International Workshop on Decommissioning of Nuclear Power Plants

For the decommissioning of NPP, the big issues are to carry out dismantling work efficiently with the existing technologies, and optimizing process management and so on.

Therefore the Workshop was held for the purpose of learning more about the various efforts from the experienced countries (USA, UK, France, Russia), and sharing the knowledge and discuss solutions.

１．Purpose

Venue ：49th floor of the Mori Tower, 6-10-1 Roppongi Minato-ku, Tokyo Language ：English and Japanese.（simultaneous interpretation）Participants： about 400 people

3. Program

■Noriaki Ozawa：Director-General for Energy and Environmental Policy ANRE,METI

■William D. Magwood：Director-General, OECD/NEA

■Toyoaki Yamauchi：Senior Executive Officer,The japan Atomic power Company“Current Status and Issues of D&D of NPPs in Japan”

■Okamoto Koji： Professor, The University of Tokyo“Safety Standards for decommissioning Activities”

■Masahiro Aoki ：DG for Nuclear Regulation, NRA“Regulatory Framework for decommissioning of NPP in Japan ”

■Adrian Simper（UK）：Strategy and Technology Director, NDA

■Pual T.Dicken（US）：Senior Policy Fellow,

Argonne National Laboratory

■Evgeny Komarov（RF）

■Bertrand Martelet（Fr）：EDF Senior Vice President

■Arnaud Gay（Fr）：Director, International

Operations Recycling Business Unit, New AREVA Holding ：Senior Manager, State

Corporation ROSATOM

10:30～ 11:00 Opening ～Keynote（30 min）

11:00～11:45 Current Situation of the Ongoing Decommissioning

OECD/NEA, NDA, CEA, ROSATOM, Energy Solutions, McKinsey &Co. Arthur D Little, The University of Tokyo and So on

<Moderator> ■Jochen Latz：Partner, McKinsey and Co.

<Panelist>■François Gauché (Fr)

■Colin Austin（US）：Director CommissariatNuclear Energy Division, CEA

■Mark Rouse（UK）：Business Director-Japan,

Cavendish Nuclear Limited

Senior Vice PresidentEnergy Solutions

■Mykyta Konstantinov（RF）：Adviser to

Director General JSC

■ Toyoaki Yamauchi：Senior Executive Officer, The japan Atomic power Company

■ Daisuke Matsuno : Director, Nuclear Energy Policy Planning Division, ANRE, METI

15:00～ 15:40 Poster session

15:40～ 17:10 Panel Discussion

17:10～ 17:30 Closing Remarks

【TOPIC】 the Optimizing the decommissioning in japan

２．OutlineDate and Time ：June 30th , 2017 , 10：30～17：30

（Roppongi Hills） （Tower hall） （Reception hall）

13:20～15:00 Case Examples from Oversees

Ref. Overview of International Workshop on Decommissioning

14

Contaminated Water

Management

Decommiss-ioning

Off-siteAbove data (mSv/year) is estimated by the rate of air dose under a condition.

Preparation of the environment

for Return・Promoting Fukushima Innovation Coast

Framework.・Supporting the business and livelihood

restoration.・Eliminating reputation damage.・Prepairing Zone Designated for

Reconstruction and Recovery. etc

15

All of the orders of Habitation Restricted Areas and Preparation Areas for Lift of Evacuation Order were lifted by spring 2017, except for the evacuation orders in Okuma town and Futaba town.

Tomioka Town25mSv/year

Dai-ichiNPS

KawamataTown

TamuraCity

Futaba Town

KawauchiVillage

Okuma Town

TomiokaTown

Naraha Town

MinamisomaCity

Iitate Village

KatsuraoVillage Namie Town

Emergency Evacuation-Prepared Areas

Deliberate Evacuation Areas

Restricted Areas

Namie Town16mSv/yearTamura City7mSv/year

Physical decay＋Weatheringeffect+Decontamination

0.5mSv/year

1.1mSv/year

1.6mSv/year

2017(6 years after the

accident)

2018(7 years after the

accident)April 2011

(Immediately after the accident)

Tow

ard

Dec

omm

issi

onin

gTo

war

dSu

stai

nabl

e m

easu

res

Tow

ard

Reco

nstr

ucti

on

Future

March 2011(Immediately after the accident)

10,000Bq/Ⅼ※Radioactive materials concentration in surrounding sea area

Less than 1/10,000

Reactor BuildingContaminated Water

Sea-side impermeable wallsLand-side Frozen-soil Walls

Waterproof pavement

Sea

Contaminated Water Management Extremely low and undetectable

(Under 0.7Bq/L)

March 2016(5YEARS after the accident)

IAEA review report(May 2015)• Many important tasks on

decommissioning and contaminated water management has been done. A large improvement was made.

Nuclear Damage Compensation and Decommissioning Facilitation Corporation(Aug. 2014)

International Research Institutefor Nuclear Decommissioning(Aug. 2013)

Mid-and-Long- term Roadmap(Dec. 2011)

Ongoing Activity toward decommissioning-Decide the policy for debris retrieval（Sep.2017）

Removal of fuels from Unit 3 will begin（Mid. FY2018）

Efforts for Contaminated Water Management and Decommissioningat Fukushima Daiichi

KawamataTown

IitateVillage

Soma City

Minamisoma City

ShinchiTown

TamuraCity

KatsuraoVillege Namie

Town

Iwaki City

KawauchiVillege

HironoTown

NarahaTown

TomiokaTown

OkumaTown

FutabaTown Dai-ichi

NPS

Dai-niNPS

Future

×

April 2011(Immediately after the

accident)

JAEA’s Okuma Analysis and Research Center(Okuma Town)

●Lift of evacuation order

・Preparation for return ofevacuees.

Re-designing Fukushima, building on wisdom from

home/abroad

Robot test field(Minamisoma City and Namie Town)

Floating offshore wind fam demonstration project(off Fukushima)

JAEA’s Collaborative Laboratories for Advanced Decommissioning Science(Tomioka Town)

Naraha Remote Technology Development Center(Naraha Town)

Accelerating Fukushima’s reconstruction

:Looking ahead to Tokyo2020

●Fukushima Innovation Coast Framework

・Creating cutting-edge newtechnologies and industries in Hama-dori area.

●Fukushima New Energy-Oriented Society Scheme

・Developing Fukushima into new energy society in the future.

Dai-ichiNPS

KawamataTown

TamuraCity

Futaba Town

KawauchiVillage

Okuma Town

TomiokaTown

Naraha Town

MinamisomaCity

Iitate Village

KatsuraoVillage Namie Town

Restricted Areas

Emergency Evacuation-Prepared Areas

Deliberate Evacuation Areas

the demonstration of National power-to-gas project（Namie Town）

Future in Fukushima

16

1. Current Status of Nuclear Energy in Japan

2. Three Key Challenges- Challenge to International Market - Challenge to Decommissioning - Challenge to Nuclear Innovation

Private-sector-led nuclear innovation

Nuclear Innovation as Key Solution

Financial support• Competitive public research

funds to involve venture companies.

• Supporting R&D and licensing costs in accordance with devtstage.(“Phased approach”)

Regulatory foreseeability• Regulatory policies for innovative

technologies clearly described by regulatory authority.

• Starting consultation from early stage of technology devt with pre-licensing review and reactor design certification.

R&D infrastructure• Providing labs’ test facilities &

sites for demonstration reactor construction to vendors.

• Utilizing research facilities internationally.

18

Selection by marketEmbodying construction PJs thruinvolving utilities & financial inst.

into PJ development.

VisionVision (eg. roadmap) of nuclear R&D

provided by the government.

Discussing revision of Strategic Energy Plan→ Acquiring social trust is indispensable.

Developing reactors with safety, economy, and flexibility as the key

Explore every possibility by utilizing innovative vitality of private sector

Light water reactor (large size) Light water reactor(medium/small size) Non-light water reactor

TWR-P (SFR)600 MWJV bet. Bill Gates and ChinaTerra Power/CNNC

BN-800 (SFR)880 MWOKBM

ASTRID (SFR)600 MWCEA

ATMEA11100 MWFramatome/MHI

Hualong11150 MWCGN&CNNC

VVER-12001200 MWRosatom

ACP100S100 MWCNNC

Nuscale600 MWNuscale

KLT-40S50 MWOKBM

ABWR1350 MWHITACHI/TOSHIBA

EPR1600 MWFramatome

CAP14001400 MWSPIC

HTTR (VHTR)30 MWtJAEA

IMSR-400 (MSR)200 MWTerrestrial

Ｕ-battery (VHTR)4 MWDesalination with

high temp.heatURENCO

AP10001000 MWWH/TOSHIBA

Design with passive safety

Ship type SMR

Levitation type plant

Hydrogen production with ultra high temperature 950 ℃

No need for refuelingfor 40 years

Independent operation in depopulated areaswhere transmission lines do not reach

Using the liquid fuel

SMR-160160 MWHoltec

Integrated PWR SMRSF demonstration reactor

SF demonstration reactorduring operation

Latest Reactor Types in the World

19

Prospects of Nuclear Development in the World

20

2030~ 2040~ 2050~

Improved light water reactors(G3+ reactors incl. ABWR; commercial phase)

Near-future reactors(eg. light water SMRs; early development ~ pre-commercial phase)

Next-generation reactors(eg. SFR, MSR; basic research phase)

• Supporting tech devt with competitive research funds

• Tech selection by its future users incl. utilities

Commercializing it with supports for site selection and licensing

• Fundamental R&D for various reactor types with competitive research funds

Concretizing business (incl. construction and operation) thru involving utilities & financial institutions.

• Supporting tech devt with competitive research funds

• Tech selection by its future users incl. utilities

Commercializing it with supports for site selection and licensing

Phased Approach & Selection by Market

21

Level SA（Commercialization）

Level A（Pre-commercialization）

Level B（Early development phase）

Level C（Basic research phase）

○ Phased Approach： Providing supports in accordance with stages of R&D.○ Selection by market： Utilities’ selecting technologies and leading to commercialization

with financial institutions’ engagement

・”Small amount, 90% subsidy” × “Many Cases”

・”Medium amount, 75% subsidy” × “~5 Cases”

・”Large amount, 50％ subsidy” × “2~3 Cases”

・Site allocation, Financial supports

Phased Approach Selection by marketConcretizing business (incl. construction & operation) led by utilities & financial institutions

Selecting & supporting promising technologies by utilities as its future user

Image of Shared Strategy to Promote Innovation

JAEA NationalLaboratory

Joyo HTTR TREAT VTR

Government of Japan Government of USA

Othercountry

Light WaterSMR MSRVHTRSFR

• Nuscale• GEH

• MFBR• Terra Power

• X-Energy • Terrestrial Energy

Government

22

Currently, “Strategy Roadmap” is being made in “Strategic Working Group on Fast Reactor development” for specifying the development work in next 10 years.

One of key points is utilizing the best combination of domestic and international resources/facilities.

Experimental Fast Reactor”JOYO”

SFR R&D throughInternational Collaboration

Fast Reactor Development

Large-scale Test Facility“AtheNa”

ASTRID TREAT, VTR

Multi-lateral collaboration in GIF(Generation IV International Forum)

- Application to NRA in March 2017for alteration of reactor installationto verify the conformity to the newregulatory requirement.

- Use for fuel/material irradiationtest, human resource development,etc.

- Dimension of facility:130m x 62m x 55m-height

- Sodium inventory: 240 ton

- Reactor vessel test modelfor thermal-hydraulic test.(tentative plan)

23

Thank you for your attention!