Monday, 16 September 2013

Japanese nuclear industry

Japan turns off nuclear reactor
Japan, for the time being, is free of atomic energy after switching off a nuclear reactor on Sunday for refuelling and maintenance


16 September, 2013

Other plants in the Asian nation remained closed for intensified safety checks following the 2011 meltdowns at the tsunami-stricken plant in Fukushima.

But despite signs that the Fukushima crisis was worsening, Japan's commitment to restarting many of its 50 idled reactors appeared stronger than ever, a year after a previous government said it would begin to phase out nuclear power completely.

Prime Minister Shinzo Abe, who took office in December, said nuclear power remained essential, even with a surge in generation capacity from solar, wind and other renewable sources, and that the world's number three economy couldn't afford the mounting costs from importing gas and oil.

Four nuclear plant operators have applied to restart a dozen reactors under revised safety guidelines, though the pace would be relatively slow, with the first expected to come online early next year at the earliest. Inspections took about six months for each reactor, and obtaining consent from local governments would also take time.

Only two reactors had been operating in Japan since July 2012, both at Ohi in the western prefecture of Fukui. The No 3 reactor was shut down for maintenance on September 2, and the No 4 reactor was taken offline late Sunday night (local time) and came to a full stop in the early hours of Monday, according to their operator, Kansai Electric Power Co. They were among the dozen that have applied to restart.

The disaster at the Fukushima Dai-ichi plant, the worst atomic accident since the 1986 Chernobyl explosion, prompted a rethink of plans to raise nuclear capacity from one-third to over half of total demand.

Even with little to no nuclear power, Japan has managed to avoid power rationing and blackouts. Industries have moved aggressively to avoid disruptions by installing backup generators and shifting to new sources, such as solar power. Recent disclosures that the Fukushima plant was still leaking radiation and struggling to handle contaminated water used to cool its reactors have raised alarms over whether the situation was as fully under control as Abe said.

Still, the government appeared certain to scuttle the commitment to end the use of nuclear power gradually that was made a year ago under a different administration.

While surveys indicated the public remained opposed to nuclear power, the demonstrations by hundreds of thousands after the Fukushima disaster have diminished, perhaps sapped by the pain to the pocketbooks of Tokyo households now paying 30 per cent more for electricity than before, with more rate hikes to come.

The issue was cost, and to a lesser extent, concern over a resurgence in climate-changing carbon emissions due to increased use of coal and oil to generate power.

Clean energy still accounted for only 10 per cent of total consumption - most of it hydropower. Much of the new capacity approved had yet to come online.

Reliance on imported oil and gas had surged from about 60 per cent of energy consumption to about 85 per cent. Japan posted a trade deficit in 2011 for the first time in 31 years, and another deficit of ¥8.2 trillion (NZ$99b) in 2012.

About half of the increase stemmed from rising fuel costs, according to the trade minister, Toshimitsu Motegi.

The recent weakening of the yen had added to the burden on the economy from oil and gas imports.

Abe and others in favour of resuming nuclear power contended that renewable energy was too expensive and unreliable - wind doesn't always blow, the Sun doesn't always shine.

Apart from those issues, national security required that Japan retain some self-sufficiency, and the only way to do that was by relying at least in the near term on nuclear energy, said Masamichi Adachi, an economist at JPMorgan in Tokyo.

While Japan's suppliers of uranium tended to be stable industrial nations, most of its oil came from the volatile Middle East.

But the reasons for keeping the nuclear industry afloat extended beyond the imperatives of trade balances and balance sheets.

Having invested trillions of yen in nuclear plants and technology it was counting on selling to a burgeoning global industry, many of Japan's business and political leaders appear reluctant to give it up.

Local communities were divided: Many have relied heavily on nuclear plants for jobs and tax revenues, but worry over potential risks.

Still, Abe has pledged to pursue renewable energy and backed reforms that would separate power generation and distribution, aimed at getting utilities to retool their electricity grids so they can absorb solar and wind power generated by households, companies and other independent sources.

Other initiatives included improving the efficiency of thermal power plants, installing computerised ''smart meters,'' using more energy-efficient construction materials and design and expanding the use of energy-efficient LED lighting.

Over a year ago, the government set a new, higher feed-in tariff for renewable energy, and companies were investing heavily in wind and solar power, transforming defunct golf courses into solar farms and building offshore wind turbines.

Such companies included phone carrier Softbank, trading houses Mitsui & Co. and Marubeni Corp., Toyota Motor Corp.'s Toyota Turbine and Systems Inc. and Oji Paper, among others. Since April 2012, Japan has increased its generation capacity from renewable sources by 15 per cent to about 3.4 million kilowatts.

''Over the last two years, there's been a realisation among the big players - Toyota, Hitachi, shipbuilders - that there's a huge opportunity in power,'' said Andrew DeWit, a professor at Rikkyo University in Tokyo.

''We're also seeing radical efficiency gains.''

Even if Japan's nuclear plants were allowed to restart, many would soon reach their 40-year operating limits, raising the issue of whether and how they will be replaced. Meanwhile, the disposal and security of nuclear waste were issues yet to be resolved.

For now, however, it appeared any phase-out of nuclear power would be very gradual.

''In the long term if we can create new resources that are more efficient than the current oil-based system, then we can rely less on nuclear power, that's quite possible,'' Adachi said.

''But it will take quite a long time.''


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