Outlook for Japanese nuclear industry remains bleak
03 December 2014
The continued shutdown of Japan's nuclear power plants will contribute to a continuation of a "severe business environment," a survey by the Japan Atomic Industrial Forum (JAIF) shows.
Since 1959, JAIF has carried out an annual fact-finding survey of the Japanese nuclear industry to "ascertain its overall state." In its latest survey, for financial year 2013 (ending March 2014), JAIF sent questionnaires to 446 private companies in Japan that have nuclear-related expenditures, sales and workers. It received responses from 263 of them.
The results of the survey showed that spending by Japan's electric power industry and sales by the mining and manufacturing industry rose slightly in FY2013, but the backlog of orders for the latter decreased significantly, as it had in the previous year, spurring concerns for the future. JAIF said that respondents "mostly expressed negative confidence, with no one expecting a return to positive confidence in the upcoming year."
Nuclear-related expenditures by Japan's power companies totalled JPY1508.3 billion ($12.7 billion) in FY2013, up 1% from the previous year. This represented some 8% of their total expenditures.
A new question added to the latest survey is on the amount spent by power companies related to meeting new regulatory requirements. The seven power companies which responded said they spent a total of JPY206 billion ($1.7 billion) in meeting new standards.
This was the fourth year in a row that the percentage of respondents to the survey "expressing bleak business confidence" has grown. While, 21% of respondents said they expected the business environment to worsen over the next year, 60% said they expect no change.
Respondents said that important factors needed for the steady progress of the nuclear power industry include the promotion of a "consistent nuclear policy" by the national government; the early restart of the country's power reactors; their stable operation; and, the restoration of public confidence in nuclear power.
All of Japan's 48 operational nuclear reactors are currently off ine pending clearance from the Nuclear Regulation Authority under new regulations that came into force in July 2013.
Researched and written
by World Nuclear News