JAPAN

1. ENERGY, ECONOMIC AND ELECTRICITY INFORMATION

1.1. General Overview

Situated in the far east of Asia, Japan is subject to a monsoon climate in the Temperate Zones. Japan has four distinct seasons that affect changes in the demand for energy and electric power. There are two peaks in the annual fluctuation of Japan's electric power demand: one is a summer peak due to the use of air-conditioning (cooling), and the other is a winter peak due to the use of heating.

Table 1 shows Japan's total population, its density and its rate of increase. Table 2 shows the Gross Domestic Product (GDP) in total, the growth rate, and the GDP per sector. Table 3 shows the estimated energy reserves in Japan. Figures 1.1 and 1.2 present the primary energy supply and the final energy consumption. The balance of energy production (supply) and energy consumption (demand) is shown in Table 4.1. Table 4.1 also shows the import/export balance. Table 4.2 shows the end-use of energy consumption by sector.

A key feature of Japan's energy consumption (see Table 4.2) is that the industrial sector accounts for the bulk of the total, with 45.9% (in FY2001), while the residential and commercial sector is 29.3% and the transportation sector is 24.8%.

Japan's total primary energy supply (in FY2001) was 22,784 PJ. Japan still depends heavily on oil, even though its dependency has dramatically decreased from 77.4% in 1973 to 49.4% at present. The decline in oil dependency can be attributed mainly to the energy conservation efforts of Japanese industries and the development of alternative energy resources in Japan. In FY2001, Japan imported 99.8% of the oil consumed in Japan (87.9% of crude oil was imported from Middle Eastern countries).

TABLE 1. POPULATION INFORMATION

												Growth
												rate (%)
												1980
	1960	1970	1980	1990		1997	1998	1999	2000	2001	2002	To
												2002
Population (millions)	94.1	104.3	116.8	123.5		126.3	126.6	126.6	127.1	127.3	127.1
Population density (inhabitants/km²)	249.1	276.2	309.2	327.0		334.3	335.1	335.0	336.4	337.0	336.5
Predicted population growth rate  (% ) 2001 to 2010 0.7  Area (1000 km²)                                                           377.8

Sources: IAEA Energy and Economic Database and Country Information; Data & Statistics, The World Bank

TABLE 2. GROSS DOMESTIC PRODUCT (GDP)

Source: Data and Statistics, the World Bank

TABLE 3. ENERGY RESERVES

Unit: Exajoule

(1) This total represents essentially recoverable reserves.
(2) For comparison purposes a rough attempt is made to convert hydro capacity to energy by multiplying the gross theoretical annual capability (World Energy Council - 1998) by a factor of 10.
Sources: IAEA Energy and Economic Data Base; Country Information

FIG. 1.1. Proportions of Primary Energy Supplies (FY2001)

FIG. 1.2. Proportions of Total Final Energy Consumption (FY2001)

TABLE 4.1. ENERGY STATISTICS

Unit:Exajoule

(1) Energy consumption = Primary energy consumption + Net import (Import - Export) of secondary energy.
(2) Solid fuels include coal, lignite and commercial wood.
(3) Primary electricity = Hydro + Geothermal + Nuclear + Wind.
Source: IAEA Energy and Economic Database.

TABLE 4.2. TREND OF END-USE ENERGY CONSUMPTION
(Unit: Exajoule (Gross Calorific Value)

Source: Agency of Natural Resources and Energy (METI)

1.2. Energy Policy

'The Long-term Energy Supply and Demand Outlook' states that energy consumption in 2010 FY will remain almost unchanged compared with that of 1999 as a result of the following measures: (1) following up on Keidanren's voluntary action plan, (2) improving the efficiency of energy-consuming equipment by introducing "the top-runner method" (the Revised Law Concerning the Rational Use of Energy), and (3) changing people's lifestyles to place a greater emphasis on energy conservation. Meanwhile, on the supply side, Japan will make maximum efforts to introduce non-fossil fuel energy sources, and will tenaciously promote the development of nuclear power as a leading part of non-fossil fuels while thoroughly ensuring its safety. Because of economic restrictions, new energy sources cannot immediately replace existing forms of energy supply. However, Japan must endeavour to expand the introduction of new energy sources as much as possible through the improvement of their performance and cost reduction.

The two oil shocks in 1973 and 1979 had a direct impact on Japan's vulnerable energy structure and inflicted considerable damage on Japan's economy. Because of the first oil crisis, the Japanese government introduced the following emergency measures: Approval of Oil Emergency Measures (1973), Enactment of Two Emergency Laws (1973), Participation in IEA (1974), and Enactment of the Petroleum Stockpiling Law (1975). The first oil crisis prompted the Japanese government not only to formulate various emergency measures as stated above, but also to change the basic philosophy of its energy policy. In 1975, the Advisory Committee for Energy, an advisory council for the Minister of International Trade and Industry, submitted a report suggesting that developing a stable supply of energy should be regarded as the top priority. On the basis of this report, the following five policy pillars were set up: reducing oil dependency, diversification of non-oil energy supplies, securing a stable supply of oil through petroleum reserves, exploration and development of oil by Japanese companies, promotion of energy conservation, and promotion of new energy R&D. In order to strengthen energy conservation, "The Law Concerning the Rational Use of Energy" was enacted in 1979. In 1974, the Sunshine Project was implemented to promote the development of new energy technologies such as solar energy, geothermal energy, coal liquefaction, coal gasification and hydrogen energy. Various alternative energy policy measures were introduced after the second oil crisis. In 1980, "The Law Concerning the Promotion of Development and Introduction of Alternative Energy" was enacted.

1.3 The Electricity System

The Electricity Industry Committee, comprised of non-governmental professionals and experts including some from electric power companies, provides advice and recommendations to The Ministry of Economy, Trade and Industry (METI) on a regular basis, regarding the basic national policies on regional network operations for the stable supply of power, promotion of demand-oriented energy-saving measures, promotion of load levelling, further development of electric power, etc. Based on this advice, METI and related Ministries and Agencies confer regularly with individual power companies to review the up-to-date demand and supply performances and to evaluate the power supply program for the future.

Japan is divided into nine geographical zones with an electric power company in each zone. These are private enterprises that specialize only in electric utility operations and are the main power suppliers in each zone. Apart from these, there is also the Okinawa Electric Power Company, a smaller electric utility company operating in Okinawa Prefecture, which comprises many small islands. These power companies run their own facilities from power generation to transmission and distribution as an integrated business operation.

The Electric Power Development Company, which has its own thermal and hydro electric power stations, and the Japan Atomic Power Company, which has its own nuclear power stations, are other private enterprises that produce electric power and act as wholesalers to the nine electric power companies. However, in relation to Japan's total installed capacity, their installed capacity is relatively small.

Table 5 shows the electricity production and the installed capacity.

With the amendment of the Electricity Utility Industry Law in 2000, a number of system reforms were implemented, such as partial liberalization of the retail supply to extra high-voltage customers. To improve competitiveness, the government established fair and equal rules allowing suppliers other than electric utilities (new entrants) to use power transmission lines owned by power utilities ("wheeling rules"). Also, electric utilities are obliged to notify METI of the wheeling service rates.

TABLE 5. ELECTRICITY PRODUCTION AND INSTALLED CAPACITY

(1) Electricity losses are not deducted.
Source: IAEA Energy and Economic Database.

2. NUCLEAR POWER SITUATION

2.1. Historical Development and Current Nuclear Power Organizational Structure

2.1.1 Overview

Enactment of the Atomic Energy Law (1955) introduced the promotion of atomic energy development and utilization toward peaceful objectives in compliance with the three basic principles of Democratic Management, Voluntary Action, and Open Information. Inauguration of the Atomic Energy Commission (1956) established an advisory board for the Prime Minister on matters regarding promotion of atomic energy development and utilization.

Long-term program for Research, Development and Utilization of Nuclear Energy (Long-term Program) was formulated in 1956. Today, it is the basic program for the nation on nuclear power development and utilization. The plan is revised and updated every five years.

The Ministry of International Trade and Industry (the former METI) was reorganized in 1966 to accommodate its increasing workload. This change provided additional rules and regulations for the introduction of commercial light water reactors in Japan after 1966.

In 1974, three basic laws for the promotion of electric power development were made into law; namely, the "Law for the Adjustment of Areas Adjacent to Power-Generating Facilities," the "Electric Power Development Promotion Tax Law," and the "Special Account Law for Electric Power Promotion." These laws also advanced the appropriate siting of nuclear power stations.

In 1978, the Nuclear Safety Commission was formed as a separate entity from the Atomic Energy Commission. Safety assurance measures were enhanced in 1980 in order to reflect the lessons learned from the TMI-2 Accident (1979) and, later, the Chernobyl No. 4 Accident in 1986.

The overall appraisal of the Vision of Nuclear Power in 1986 provided long-range prospects of energy availability and electric power requirements through 2030, and a program for enhancement of safety called "Safety 21," which further reinforced safety assurance measures. In 1990, Japan revised its supply targets to include alternative energy sources to mitigate its growing demand for oil and its part in the greenhouse effect.

In 2001, the Nuclear and Industrial Safety Agency (NISA) was formed as a separate entity from the Agency of Natural Resources and Energy of the Ministry of Economy, Trade and Industry (or METI, which was renamed from the Ministry of International Trade and Industry or MITI), to hold jurisdiction over matters of nuclear and industrial safety.

2.1.2 Current Organizational Chart

Figure 2 shows Japan's organization chart in nuclear power, comprising government regulatory authorities, electric power companies and contracting engineers/suppliers.

The Japanese government carried out administrative reform in January 2001. The Atomic Energy Commission and Nuclear Safety Commission (NSC) of the Cabinet Office gives high-level independent and proper directions to other ministries and agencies.

The Ministry of Education, Culture, Sports, Science and Technology (MEXT) was created through a merger between the former Ministry of Education, Science, Sports and Culture and the Science and Technology Agency (STA). In MEXT, three Bureaus and four Divisions are in charge of nuclear energy. MEXT is responsible for the administration of nuclear energy for science and technology. Its key roles are nuclear research and development (including nuclear fuel cycle, FBR, quantum research, fusion, and accelerators), utilization of radiation and radioisotopes, nuclear liability, safety regulation and disaster prevention for nuclear reactors for testing and research, use of nuclear fuel material, and regulation for ensuring peaceful use and safeguards. It is also responsible for supervision of the National Institute of Radiological Science, the Japan Atomic Energy Research Institute and the Japan Nuclear Cycle Development Institute.

The Ministry of Economy, Trade and Industry (METI) will be in charge not only of those areas that it had been involved in previously - as the Ministry of International Trade and Industry (MITI) - or taken over from STA - related to the nuclear fuel cycle business (refining, enrichment, fabrication, reprocessing and waste disposal), but also regulation of nuclear reactors including Monju and Fugen, that are in the research and development stage for use in generating electricity. Nuclear power-related issues will continue to be the responsibility of the Agency of Natural Resources and Energy. In addition, the Nuclear and Industrial Safety Agency (NISA), with its ten sections related to nuclear energy, was added as a special institution, to play a central role in safety regulations for industrialized nuclear power. NISA is responsible for regulating nuclear safety. The drafting of safety regulations and the licensing of milling and refining, nuclear fuel fabrication, spent nuclear fuel reprocessing and storage, disposal of radioactive waste and decommissioning of nuclear power plants, are now carried out by NISA. A double check system of safety review of nuclear facilities by NSC and NISA or MEXT is continuously adopted.

The Ministry of Foreign Affairs (MoFA) is responsible for the international aspect of nuclear energy utilization, including the implementation of the related international treaties and conventions.

Legend to Figure 2:

AEC: Atomic Energy Commission
NSC: Nuclear Safety Commission
METI: Ministry of Economy, Trade and Industry
ANRE: Agency of Natural Resources and Energy
NISA: Nuclear and Industrial Safety Agency
MEXT: Ministry of Education, Culture, Sports, Science and Technology
MoFA: Ministry of Foreign Affairs
JAERI: Japan Atomic Energy Research Institute
JNC: Japan Nuclear Cycle Development Institute
FEPCO: Federation of Electric Power Companies
HEPCO: Hokkaido Electric Power Co.
TOHOKU: Tohoku Electric Power Co.
TEPCO: Tokyo Electric Power Co.
CHUBU: Chubu Electric Power Co.
HOKURIKU: Hokuriku Electric Power Co.
KEPCO: Kansai Electric Power Co.
CHUGOKU: Chugoku Electric Power Co.
SHIKOKU: Shikoku Electric Power Co.
KYUSHU: Kyushu Electric Power Co.
JAPCO: The Japan Atomic Power Co.
TOSHIBA: Toshiba Corporation
HITACHI: Hitachi Ltd.
MHI: Mitsubishi Heavy Industries Ltd.
GE: General Electric Co.
GEC: The General Electric Co. Ltd.
WH: Westinghouse Electric Corporation
EBASCO: Ebasco Services Incorporated
GILBERT: Gilbert/Commonwealth International
GETSCO: General Electric Technical Services Co.

TABLE 6. STATUS OF NUCLEAR POWER PLANTS