The High Cost of Restarting Nuclear Reactors in Japan

The aftermath of the 2011 Fukushima nuclear disaster has resulted in significant financial burdens for restarting idle reactors in Japan. A recent survey by the Asahi Shimbun revealed that the cost of anti-terrorism and other safety measures has surpassed 6 trillion yen ($41 billion). This substantial expenditure has significantly eroded the cost advantage of nuclear power generation, raising concerns about its future competitiveness.

The survey found that the 11 electric utilities in Japan have incurred substantial expenses for safety upgrades at their nuclear facilities. These upgrades are mandated by revised regulatory standards implemented after the Fukushima disaster, requiring measures to withstand earthquakes, tsunamis, and terrorist attacks.

The costs vary significantly among different utilities and reactors. For instance, Chugoku Electric Power Co. has seen its safety costs increase by 220 billion yen due to the planned restart of the No. 2 reactor at its Shimane nuclear power plant. Similarly, Hokkaido Electric Power Co. invested 261.8 billion yen to construct a coastal levee for tsunami protection at its Tomari nuclear plant, resulting in a 39.6 billion yen increase in safety costs.

Reactors undergoing inspection for potential restarts are also expected to face high safety costs. The Shimane plant, for example, requires an estimated 300 billion yen for reactor operation, excluding additional anti-terrorism measures mandated by the Nuclear Regulation Authority. Tohoku Electric Power Co. plans to spend 710 billion yen to reactivate the No. 2 reactor at its Onagawa nuclear power plant, with costs driven by the need for stronger earthquake and tsunami protection.

The significant variations in safety costs are primarily attributed to differences in the required countermeasures against earthquakes and tsunamis. Building anti-tsunami levees can cost over 100 billion yen, while enhancing the seismic resistance of piping and equipment is also a costly and complex process.

These escalating costs raise concerns about the future competitiveness of nuclear power generation in Japan. The government's 2021 cost prediction for each power source, which included safety measures for reactors undergoing screening, estimated expenses per reactor at around 200 billion yen. This figure was used to determine the cost of building a new nuclear power plant. However, the actual costs are exceeding these estimates, potentially making nuclear power less attractive compared to other energy sources.

The high cost of safety measures is a significant challenge for the nuclear industry in Japan. As more reactors undergo inspection and potential restart, the financial burden is likely to continue increasing. This raises questions about the long-term viability of nuclear power in the country and its role in the future energy mix.