Friday, February 24, 2012

Nuclear plant shutdowns taking heavy toll on local economy

TOKYO --Unit 3 of the Takahama nuclear power station (NPS) operated by the Kansai Electric Power Co., Inc. was shut down on February 20 to undergo a periodic inspection. In Japan, operators of nuclear reactors are obligated in principle to start a periodic inspection of their respective reactors within 13 months of the completion of the preceding periodic inspection. Since the Fukushima nuclear accident, many reactors have not been able to restart even after completion of their periodic inspections. With the recent shutdown of Takahama unit 3, 52 of Japan's 54 nuclear reactors are now offline. The impact is spreading beyond power supply and demand, and now affecting various areas including local economy and employment.

In Fukui Prefecture, where the Takahama NPS is located, all of the prefecture's 13 nuclear reactors are currently suspended with no clear prospects for resumption. The construction and wholesale industries in the region are becoming increasingly apprehensive of the ongoing situation, as their operations rely on businesses associated with nuclear plants such as construction work and material supply. There is also concern that the prolonged shutdown of the nuclear plants may accelerate the drain of human resources having expertise in reactor maintenance.

Yutaka Nose, mayor of Takahama Town, Fukui Prefecture, made a plea citing the difficulties faced by the local industries during his speech in January this year by saying, "For construction companies with a size of only 10 employees or so, staying in business for as few as six months will not be viable without receiving construction contracts related to periodical inspections." He added, "With no prospect in sight for the reactors to be restarted, companies are facing a situation where they cannot secure bridge loans from financial institutions."

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