Nuclear energy strategy in the environment of utility business deregulation

Abstract

Nuclear power has contributed to the reduction and stabilization of electricity rate in Japan. However, its economic competitiveness has been eroding since mid 80's. Deregulation is hitting nuclear power just at the time its competitiveness is declining, and it poses a threat to drive short-sighted market orientation and precludes long term focus on achieving a balance between “environmental agenda” and “competitiveness in market”. Lowering the electricity rate is one of the important agenda to improve the nation's industrial competitiveness in the global market. However, it will be very difficult to win the competition of gas and oil prices with other developed countries in Europe and North America due to a handicap of long transportation distance. Only nuclear power and natural energy have no relation to such a handicap of economic distance from resources. Without securing economic superiority of those energy sources, Japan will not be able to clear the handicap of energy costs. The Japanese utilities are trying hard to regain the competitive edge of nuclear power. We have established short-term strategies for both existing and new LWRs as well as a long-term strategy for technological development. With these strategies we will be able to regain the competitiveness of nuclear power.