Japan Aug nuclear plant usage 5.1 pct vs July 2.9 pct

Japan's nuclear power plant utilisation rate rose to 5.1 percent in August from 2.9 percent in July, a Reuters calculation based on trade ministry data showed on Monday.

With only two reactors in operation, the run rate marks a sharp fall from 26.4 percent in August 2011.
Prime Minister Yoshihiko Noda has suggested no more reactors will be allowed to restart until a new nuclear regulator takes over from existing watchdogs, due this month. It is expected to take several months for the new regulator to announce its own safety regulations.in July,

Kansai Electric Power Co resumed operations of two reactors at its Ohi plant after receiving approval from Noda and three other key ministers to avert potential blackouts in Osaka and surrounding areas of western Japan over the summer peak demand period.

They were the first restarts since last year's earthquake and tsunami triggered the Fukushima nuclear crisis, which by early May this year had resulted in all of the country's 50 reactors being kept offline for safety checks.

Nine Japanese utilities and a non-utility electricity wholesaler, Japan Atomic Power Co, have 50 nuclear power generators for commercial use, with a total generating capacity of 46,148 MW.

Before Fukushima, Japan had 54 reactors that supplied about 30 percent of the nation's electricity needs.

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Japan - First Reactor Is Restarted Since Quake

TOKYO — A two-month shutdown of Japan’s nuclear power plants ended on Sunday when officials at a western plant reactivated a reactor for the first time since the disaster last year in Fukushima.

The restarting of reactor No. 3 at the Ohi nuclear plant was ordered two weeks ago by Prime Minister Yoshihiko Noda, in a decision that has spurred growing public protests. 

The plant’s operator, Kansai Electric Power, had been working since then to prepare the reactor to resume its operations on Sunday. 

All of Japan’s 50 functional reactors were taken offline one by one for safety checks after the disaster at the Fukushima Daiichi plant, which contaminated a large part of northern Japan with radiation. 

The last reactor was shut down in early May amid widespread public concern over the safety of nuclear plants in the event of another large earthquake and tsunami of the sort that struck Japan in March 2011. 

Mr. Noda said the restarting of the reactor was necessary to avoid crippling power shortages in the heavily urbanized Kansai region, which the plant serves. However, his decision has drawn unusually vocal public opposition in normally compliant Japan, with many Japanese saying that he ignored safety concerns to protect the powerful nuclear industry.

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Uranium Producers Likely To Benefit From Rising Demand, As Japan Returns To Nuclear Power Use

June 20, 2012 by: Zvi Bar

 Last week, Prime Minister Yoshihiko Noda ended Japan's month-long freeze on nuclear power. On June 16, after the Prime Minister met with three Cabinet ministers sharing nuclear approval authority, he stated that two reactors at Kansai Electric Power's Ohi nuclear plant could be put into operation. The Ohi plant serves the second-largest urban region within Japan, and Kansai immediately began working towards starting the reactors, estimating that the first should be up running in early July and the second by mid-July.
Japan will slowly reopen most of the nuclear plants that provided almost one-third of the nation's energy, before being shut down after the meltdowns at Tokyo Electric Power's Fukushima station in March of 2011. The decision to restart nuclear power usage follows a deal between political parties that also included a consumption tax increase. The nuclear power restart is still unpopular with many Japanese people, but many industrial businesses have claimed they require the power.
This could be the start of something in the potential turnaround for uranium miners. Japan was formerly one of the largest users of nuclear power, and its moratorium on the use had a significant reduction in the overall demand for the commodity. The last year was exceptionally negative for uranium miners and the radioactive element itself. Beyond Japan's actions, Germany added that it planned to phase out nuclear power production. Japan's ramping up of its sizable nuclear power development should help buoy demand for uranium, and also help stabilize or increase its price.
After a serious surge to start off the year, where several uranium producers appreciated by more than 60% in January, most have since been stuck in their state of gradual decline that accelerated when the broader equity commodity markets also began to decline.
Emerging market demand trends for uranium look strong, with both China and India announcing multi-year plans to develop nuclear power infrastructure. China plans to increase its nuclear capacity eight-fold by the end of the decade and India plans to increase its production thirteen-fold. Other nations within Asia and Southeast Asia could follow their lead. If this were to happen, emerging market demand would likely replace and even surpass current first-world demand for uranium. Natural gas is not a cheap option in Asia.
Few companies are substantially related to uranium, but examples include Cameco (CCJ), Denison Mines (DNN), Uranerz Energy (URZ), Uranium Resources (URRE) and USEC (USU). Below is a year-to-date performance comparison chart for the group.

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Japan Wins Scientists’ Panel Nod to Restart Atomic Reactors

Kansai Electric Power Co.'s Ohi nuclear power station is seen behind Japan's national flag displayed on a fishing boat in Ohi Town, Fukui Prefecture, Japan. Photographer: Tomohiro Ohsumi/Bloomberg

A panel of Japanese scientists reported that two nuclear reactors idled for safety checks are safe to operate, giving Prime Minister Yoshihiko Noda the approval he needs to re-start the units.

After a meeting late Sunday that was moved to a new venue after anti-nuclear protests, the 12-member panel appointed by the governor of Fukui prefecture, where Kansai Electric Power Co. (9503)’s Ohi nuclear plant is located, released a document stating the plant can be operated safely.
“It has been evaluated that safety measures are satisfactory for ensuring reactor security even in the event of an earthquake and tsunami that must be anticipated based on the lessons learned from the Fukushima Dai-Ichi nuclear accident,” the panel said.
Noda, backed by businesses including Komatsu Ltd. (6301) and NEC Corp. (6701), said June 8 the nation needs to resume nuclear power generation to avoid blackouts and preserve quality of life. Polls show 70 percent of Japanese oppose atomic energy.
The science panel was appointed by Fukui Governor Issei Nishikawa to provide an extra measure of safety checks after last year’s disaster at Tokyo Electric Power Co. (9501)’s Fukushima plant in the northeast undermined support for atomic power. Radiation leaks prompted the evacuation of as many as 160,000 people.

Public Opposition

Seventy-one percent of respondents to a Mainichi newspaper poll published on June 4 objected to a speedy restart of the reactors in Ohi. In a separate poll released June 5 by the Pew Research Center, 70 percent of Japanese said the country should reduce its reliance on nuclear energy and 52 percent said they were worried that they or someone in their family may have been exposed to radiation.
Nishikawa is expected to accept the panel’s advice, clearing the way for Noda to allow the reactors to resume operation. The prime minister and three cabinet members with final say on the restart may give the go-ahead as early as June 16, the Kyodo News agency reported, citing unnamed officials.
Japan, once the world’s biggest nuclear power generator after the U.S. and France, shut its last operating reactor on May 5 after last year’s March 11 quake and tsunami caused meltdowns and radiation leaks at the Fukushima Dai-Ichi plant. Supporters of restarting the two Ohi reactors, including Hiromasa Yonekura, chairman of Japan’s biggest business lobby Keidanren, say power shortages in the Kansai region could force factory shutdowns and slow the economic recovery.

Local Authorities

While not legally required, central authorities typically seek the consent of local governments to restart reactors.
Local authorities near Fukui prefecture dropped their opposition to the restart on May 30, leaving the decision to the Fukui governor, the Ohi mayor and four key ministers: Noda, Trade and Industry Minister Yukio Edano, Environment Minister Goshi Hosono and Chief Cabinet Secretary Osamu Fujimura.
In April the four approved safety measures at the plant and confirmed the necessity of the restart to avert power shortages.
Yukiko Kada, governor of Shiga prefecture, next to Fukui, criticized the government for what she called the “rush to restart the reactors” in an April 11 interview.

Power Cuts

The Japanese government announced power-saving targets on May 18 in areas supplied by seven of 10 regional utilities, including Kansai Electric, which is most dependent on nuclear power. Homes and companies supplied by Kansai Electric should cut consumption by more than 15 percent from 2010 levels on weekdays beginning July 2 through Sept. 7, it said.
Six weeks will be needed for the two 1,180-megawatt reactors to reach full output, Akihiro Aoike, a Kansai Electric spokesman, said. Users in the Kansai region should prepare to conserve power even if the reactors are brought online because full production won’t be reached until after July, Edano told reporters on June 1.
Absent nuclear power, Kansai Electric’s electricity output may fall 14.9 percent short of peak demand this summer should the nation experience a heat wave similar to 2010’s, a government panel said last month.
Western Japan has a 40 percent likelihood of higher-than- average temperatures in the three months to August, the Japan Meteorological Agency said on May 24. The eastern and northern regions have a 30 percent possibility of a warmer-than-usual summer, the state-run agency said.
Even if power shortages during peak summer hours are averted, increased use of thermal power plants will keep draining Japan’s national wealth, the government panel said.

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Areas with nuclear plants may be exempt from rolling blackouts

The government and four electric companies are discussing the possibility of exempting areas around nuclear power plants from rolling blackouts that may be implemented this summer if power shortages become serious, sources said Tuesday.

The idea is to ensure that people living near nuclear power stations can evacuate quickly in case of problems at the plants, according to the sources.

The four utilities that may carry out rolling blackouts are Hokkaido Electric Power Co., Kansai Electric Power Co., Shikoku Electric Power Co. and Kyushu Electric Power Co.

Even though all of Japan's nuclear reactors are currently idle, spent fuel and other radioactive materials are stored inside the facilities, and work to cool the fuel continues.

In the event of a nuclear accident, it could be necessary to evacuate nearby residents, and it would be important to maintain communications around the plants so technicians and emergency responders would not be hindered, the sources said.

On the other hand, excluding areas around nuclear facilities from the rolling blackouts could trigger criticism. The government will thus carefully choose areas that would be exempted, the sources said.

Hospitals, water and wastewater service operators, and railroad operators will be exempt from the rotational power outages.

Last summer, rolling blackouts were conducted only in the Tokyo area, where there are no nuclear plants. Therefore, preparations for nuclear accidents were not necessary.

For this summer, the government has announced voluntary power-conserving targets in the areas served by the four power suppliers plus three other utilities — Chubu Electric Power Co., Hokuriku Electric Power Co. and Chugoku Electric Power Co.

If the rolling blackouts are used, power supply will be cut district by district, with each outage lasting two hours.

Power shortages are expected to be particularly serious in the Kansai region, where Kepco has relied heavily on nuclear energy.

The government is trying to win local support for the restart of the No. 3 and No. 4 reactors at Kepco's Oi power station in Fukui Prefecture.

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Japan: Power crisis 'can be averted': Govt says restarting Oi reactors key to preventing blackouts

This summer's expected power shortage in Kansai Electric Power Co.'s service area may be averted if two reactors at the Oi nuclear power plant are restarted in combination with power-saving efforts by businesses and households, according to the government's new power supply projection released Thursday.
This is the first time the government has presented a power demand-supply outlook on the assumption that a nuclear reactor will resume operations.
With no nuclear reactors operating in the country, KEPCO's service areas are expected to suffer a particularly serious power shortage this summer.

However, the government apparently believes a power crisis can be prevented if the resumption of the Oi nuclear reactors is coupled with energy-saving efforts from the public and private sectors, which initially took root after serious power shortages last summer.
The projection is likely to affect ongoing discussions among local governments and residents living near the Oi nuclear plant in Fukui Prefecture on whether to restart the Nos. 3 and 4 reactors, which were shut down last year for regular maintenance.
The government submitted a draft report on the assumption that nuclear reactors will not be reactivated to an expert panel tasked with verifying the country's power demand-supply outlook. It also presented projections on the assumption the Oi reactors were reactivated.
According to the government projections, reactivating the Oi reactors is expected to push up KEPCO's power supply capacity by 4.46 million kilowatts--2.36 million kilowatts of which are to be generated by the two reactors, plus an additional 2.1 million kilowatts to be generated by pumped storage hydropower using nighttime surplus power from the reactors.
The pumped storage hydropower system works most effectively in combination with nuclear reactors, which are able to generate a constant amount of electricity around the clock.
According to the projections, even if Japan experiences a record-breaking heat wave as it did in 2010, no power shortage is expected during peak hours if the Oi reactors are reactivated and KEPCO asks large-lot users to reduce their electricity consumption in accordance with a special contract asking them to do so in the event of a tight energy supply. Even if no such request were to be made, the power shortage will only reach 0.9 percent.
However, the figure is still short of a 3 percent power surplus--the amount generally considered necessary for sufficient supply if power generation facilities malfunction.
Even so, it will be possible for the government to avoid implementing compulsory energy-saving measures, such as power consumption limits and rolling blackouts.
The government projects that KEPCO's service areas will face a 15.7 percent power shortage, or 4.73 million kilowatts, if no nuclear reactors resume operation.
In that case, even if large-lot users are asked to curb their energy consumption, the region will still suffer a power shortage of 14.9 percent, or 4.45 million kilowatts.
If no nuclear reactors are reactivated nationwide, nine electric power companies will suffer a combined electricity shortage of 0.3 percent, according to government projections. But this figure is expected to recover to a 0.1 percent surplus if large-lot consumers take measures to save electricity under their special contracts with the utilities.
If the Oi reactors are restarted, there is expected to be an energy supply surplus even without efforts by large-lot users to reduce consumption, according to the projections.

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Power Shortages Expected in Japan

By MARI IWATA

TOKYO—The Japanese government said it expects electricity shortages in Tokyo as well as in the Kansai and Kyushu regions this summer, shaping up to be the country's first peak-demand season without nuclear power since 1965.
In a preliminary report Wednesday, the government's national policy unit projected a 5% shortage for Tokyo and 4% shortages for Kansai and Kyushu. The forecast is based on peak-demand data from last summer, and on supply-capacity figures submitted by utilities. It takes into account the possible resumption of power-saving programs in place last summer, which were estimated to have trimmed typical demand levels by around 10%.

Bloomberg News

The Kansai Electric Power Co.'s Takahama nuclear power station at dusk in Japan.

The projections come amid a debate over whether currently idled nuclear plants should be brought back online; the government is in the final stages of deciding whether to allow the restart two reactors operated by Kansai Electric Power Co. 9503.TO -1.22% Since the March 2011 accident at the Fukushima Daiichi nuclear plant, no plant idled for routine maintenance has been restarted.
The figures released Wednesday will be the basis for discussions between the government and utilities on how to alleviate energy shortfalls. During last year's peak-demand season, Japan required large power users in the eastern part of the country—the service areas of Tokyo Electric Power Co. 9501.TO -2.55% and Tohoku Electric Power Co. 9506.TO -2.07% —to cut their electricity use by 15%.
The government plans to calculate its final estimates for this summer by factoring in more electricity-saving measures including higher rates during peak hours. It will present its estimates to a government panel as early as Monday.
As of Saturday, when the No. 3 unit at the Tomari nuclear power plant on the northern island of Hokkaido goes offline for a planned checkup—required every 13 months in Japan—there will be no reactors operating the country.
Through compulsory usage restrictions for large-lot users and voluntary conservation efforts in the eastern part of the country, Japan managed to evade any major power shortages last summer. In Tokyo, many buildings dimmed their lights and turned down air conditioners, even as temperatures rose past 35 degrees Celsius.
But nuclear power was still generating 11% of Japan's power supply last August, according to industry data. The loss of that power makes the potential for shortages even greater this year than last, despite efforts by utilities to boost non-nuclear generation to make up for the shortfall.
The situation could be further exacerbated if temperatures are closer to the record highs reached in 2010. Last month, trade and industry minister Yukio Edano said that with no nuclear reactors back online in the summer, the area served by Kansai Electric could suffer an energy shortfall of around 20% if temperatures reached the levels they did that summer. That would require said companies and households to take energy-conservation measures of more than 20%.
"There are so many factors at work here, and it's not easy to estimate precisely. I wouldn't advise that you expect any upward revision" in power-supply capacity, said Hirofumi Kawachi, an energy-industry senior analyst at Mizuho Investors Securities.
Business leaders have urged lawmakers to bring reactors that have completed their maintenance checks back online before electricity demand peaks in the summer months, to avoid damage the economy.
But public fears about safety remain strong, with public opinion polls showing an overwhelming majority oppose the restarts.

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Japan: Reactivate nuclear reactors to prevent recession

The bitter winter chill is gradually easing. It looks like the nation has been able to meet peak demand for electricity over the winter and avoid a greatly feared electricity crisis.

However, industry and individual households must not let their guard down. Power suppliers across the country are walking on a tightrope, and the electricity shortage has become chronic.

Almost one year has passed since the Great East Japan Earthquake. Most nuclear reactors across Japan have been left idle even after undergoing regular inspections since the crisis at the Fukushima No. 1 nuclear power plant operated by Tokyo Electric power Co.

Just two of Japan's 54 commercial nuclear reactors are still operating. In only about two months, all the reactors will be shut down--this will be an emergency situation.

We urge the government to make utmost efforts to promptly reactivate nuclear reactors once they have been confirmed safe to operate.

Kansai Electric Power Co., which has shut down all the nuclear reactors under its jurisdiction, had difficulties supplying enough power to meet demand. The utility was forced to crank up its remaining power plants, including obsolete thermal power stations, to maximum output to meet winter demand.

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By the skin of their teeth

Other electric power companies had no choice other than to depend on thermal power plants. However, malfunctions due to aging were frequently reported at such power stations. More than 10 plants across Japan had to be quickly shut down due to emergencies this winter.

The trouble at the Shin-Oita thermal power plant of Kyushu Electric Power Co. had a particularly serious impact. The utility barely managed to avoid implementing blackouts in its service area by hooking up to power supplies from five electric utilities in western Japan and TEPCO.

The government projects that if summer arrives before any nuclear reactors are reactivated, the country will face an electricity shortfall of about 9 percent. The forecast said KEPCO, which relies heavily on nuclear power, is facing an electricity shortage of about 20 percent for its service area. This estimate suggests Japan likely will experience a critical power shortage in a different league to the one this winter.

However, dependence on thermal power generation has its limits. In the event of a major problem at a thermal power plant, it could be impossible to prevent a blackout.

The country's imports of liquefied natural gas, a main fuel for thermal power generation, are rapidly increasing. The volume of LNG imports marked a year-on-year increase of 12 percent last year, and import costs jumped 37 percent due to surging LNG prices.

There also is growing concern over whether Japan can ensure a stable supply of the fuel. While the country has a 200-day crude oil reserve, it has only enough LNG for two to three weeks of power generation.

The nation must make every effort to procure enough LNG through diversified sources of supply by boosting cooperation between the public and private sectors.

Greater use of such natural energy as solar and wind power is definitely desirable, but the power generation capacity of these reusable energy sources is still meager. A considerable time will be needed before natural energy utilization becomes a principal power source.

Under these circumstances, it will be essential to generate more power at new, high-performance coal- and oil-fired plants that are more environmentally friendly as they emit less greenhouse gases than earlier models.

While diversifying power sources from a medium- and long-range viewpoint, how can stable electricity supplies be guaranteed for the time being? The government must buckle down to this knotty challenge.

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Diversified sources needed

In late February, Economy, Trade and Industry Minister Yukio Edano said, "Given the current electricity supply-demand situation, the nation needs to have nuclear power plants restarted." We could not agree more.

However, it seems the government is not unified in addressing with seriousness the task of restarting nuclear plants. A key to getting local governments in areas hosting nuclear plants to support their resumption lies in whether the government can responsibly assure the safety and security of nuclear power generation.

Prime Minister Yoshihiko Noda must waste no time in placing himself at the vanguard of government efforts to persuade the local governments to agree to their early restart.

Because the loss of power generation by nuclear plants had to be made up for by coal- and oil-powered plants, thermal power generation accounted for the 70 percent level of Japan's total power generation in the past year, up from the 50 percent level a year before. Fuel costs of power utilities have shot up by more than 3 trillion yen per year.

As a result of soaring power generation costs, TEPCO will raise its electricity charges from April. If the dependence on thermal power generation continues, other electric utilities could very likely follow suit.

Japanese industries face a double whammy: anxieties over power shortages coupled with rising production costs.

A Yomiuri Shimbun survey revealed 70 percent of major companies believe they will be unable to pass along higher power charges through their product prices. This will inevitably have an adverse effect on their business performance.

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Beware of hollowing-out

Last summer, efforts by companies and households to cut back on electricity use played a crucial role in preventing large-scale blackouts. However, these efforts also brought other problems.

As factories changed work shifts to holidays, early mornings or nights when overall power consumption is lower, employees' working hours became irregular in the summer of 2011, imposing considerable burdens on them.

In regions struck by the March 11 disaster, power saving dulled production activities to the extent of threatening the prospects of some recovery projects. There is no room to be overconfident in the effects of power saving.

According to a survey by the Japan Business Federation (Keidanren), 60 percent of Japanese companies said they would cut or halt domestic production should power shortages continue for two or three years. If more manufacturers shift production bases overseas, the pace of the hollowing-out of domestic industries will accelerate.

Although there are high expectations that recovery projects from the March 11 disaster will invigorate demand, the national economy as a whole has been in a lull.

The government has a heavy responsibility to prevent a power shortage from triggering an economic slump by dragging down business activities.

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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."