On November 21, Niigata Governor Hideyo Hanazumi held an emergency press conference and announced his intention to approve the restart of Units 6 and 7 of Tokyo Electric Power Company’s (TEPCO) Kashiwazaki-Kariwa Nuclear Power Plant (Kashiwazaki City and Kariwa Village, Niigata Prefecture). This increases the likelihood that the Kashiwazaki-Kariwa Nuclear Power Plant bringing the plant one step closer to restart.
This article summarizes the movement toward restarting the plant, the debate surrounding nuclear power plant restarts, and what it means for businesses.
Movements Toward Restarting the Kashiwazaki-Kariwa Nuclear Power Plant
The Kashiwazaki-Kariwa Nuclear Power Plant, operated by TEPCO Holdings, is one of the world’s largest nuclear power plants. However, it has been suspended since the Fukushima Daiichi Nuclear Power Plant accident following the Great East Japan Earthquake in 2011.
While progress was being made toward restarting the plant, in 2021, multiple security flaws were discovered, leading to a corrective action order from the Nuclear Regulation Authority. TEPCO subsequently implemented organizational reforms and additional measures, and the corrective measures were lifted in December 2023.
The aforementioned Hanazumi inspected the Kashiwazaki-Kariwa Nuclear Power Plant on November 18. Since then, it has been reported that he is “prepared to accept” the plant’s restart. Furthermore, at a press conference on the 21st, Hanazumi stated that he would seek the approval of the prefectural assembly, signaling his intention to proceed through the appropriate political process.
The Debate Over Nuclear Power Plant Restarts in Japan
Since the Fukushima Daiichi nuclear disaster, public opinion in Japan has been divided over the restart of nuclear power plants. According to a survey conducted by the Mainichi Shimbun in March of this year, 41% of respondents said “we should proceed with the restart,” 29% said “we should not proceed,” and 30% said “we don’t know/won’t answer.” Opinions remain divided.
The government’s 2022 Green Transformation (GX) Basic Policy, which includes the Japanese government’s carbon-neutral initiatives and a policy package of economic measures triggered by them, clearly states “maximum utilization of existing nuclear power plants” and “development of next-generation innovative reactors,” promoting the use of nuclear power from the perspective of decarbonization and energy security. In the business community, there are strong concerns that high electricity prices due to reliance on thermal power will undermine international competitiveness, and many support the restart of nuclear power plants.
In other words, the history of the restart of the Kashiwazaki-Kariwa Nuclear Power Plant reflects the process through which the Japanese government has sought to build social consensus around its energy policy.
Effects of Restarting the Kashiwazaki-Kariwa Nuclear Power Plant
Restarting the Kashiwazaki-Kariwa Nuclear Power Plant is expected to have both positive and negative effects in many areas, from stabilizing the power supply to impacting local communities. The main impacts are divided into “positive” and “negative” categories.
Positive Effects
If the plant is restarted, the greatest benefit will be a stabilized power supply. Since the nuclear power plant shutdowns, Japan’s power generation mix has relied heavily on thermal power generation, and electricity prices have risen along with rising LNG prices.
Restarting the Kashiwazaki-Kariwa Nuclear Power Plant will likely create increase power supply capacity, particularly for the Tokyo metropolitan area, contributing to the stabilization of electricity prices. It will also have the advantage of reducing the risk of securing power for manufacturing industries and data centers that require large amounts of electricity.
In addition, because nuclear power is a power source that does not emit large amounts of CO₂, it will also contribute to achieving Japan’s 2030 greenhouse gas reduction target.
Negative Effects
However, the negative aspects cannot be overlooked. The biggest issue is the emergence of social division.
Since the Fukushima Daiichi nuclear accident, concerns about safety, evacuation plans, and spent nuclear fuel disposal remain deep-rooted, and there are some groups who are cautious about restarting nuclear power plants. Even if restarts proceed without sufficient social consensus, this could lead to tensions with the local community and risk to the company’s reputation.
Furthermore, for some companies, locating bases in regions reliant on nuclear power generation may not be viewed favorably from a CSR perspective, so careful consideration is required depending on the industry and region.
Benefits for Companies Considering Entering Japan
For companies considering entering the Japanese market, the restart of the Kashiwazaki-Kariwa Nuclear Power Plant is a positive factor in terms of a stable power supply.
In particular, the importance of power supply is increasing not only in Japan but also in sectors that require large amounts of electricity. For example, NVIDIA recognizes that the AI data centers to which its products are shipped consume large amounts of electricity. In its disclosure documents to the Securities and Exchange Commission, the company lists power as a risk factor for its company.
Securing power is essential not only for AI data centers but for the manufacturing industry in general, and an unstable power supply can disrupt business in other industries as well. In this respect, it can be said that Japan’s power supply risks have been lowered.
Of course, individual Japanese citizens have mixed feelings about nuclear power. Understanding and consideration of this point is necessary.
