Chairman’s Message

<Main Points>

Local governors accept the restart of KK 6 and Tomari 3.

The significance of the restart of the two reactors is substantial.

Challenges for further restarts remain.

The process to “replace” nuclear reactors has started.

More actions are necessary to realize “replacement”.

Momentum is building for nuclear power.

1. Local Governors accept the restart of KK 6 and Tomari 3

On November 21, Governor Hanazumi of Niigata Prefecture announced his acceptance of the restart of Kashiwazaki-Kariwa unit 6 (KK 6) of Tokyo Electric Power Company (TEPCO). After obtaining the endorsement of the Governor’s decision by the Prefectural Assembly, Governor Hanazumi formally informed the Japanese Government of his consent to the restart of KK 6 on December 23. KK6 is expected to restart on January 20, 2026.
　In Japan, after securing the authorization by the Nuclear Regulation Authority (NRA), the consent by the local governments is considered necessary to restart nuclear units. These local governments include the cities and villages that host, or are near, nuclear power plants, as well as the local prefectures. While host cities and villages have been more willing to consent because they benefit directly from the nuclear power plants (including tax revenue), consent from the prefecture has been more difficult, as more cities and villages not necessarily benefiting from the plants are involved.
　On December 10, Governor Suzuki of Hokkaido Prefecture also announced his acceptance of the restart of Tomari unit 3 (Tomari 3) of Hokkaido Electric Power Company (HEPCO). After completing the necessary work, Tomari unit 3 is expected to restart in 2027.

2. The significance of the restart of two reactors is substantial

The restart of KK 6 will be the first restart of a nuclear unit for TEPCO. Following the Fukushima Daiichi nuclear accident, TEPCO, as the operator of Fukushima nuclear power plant, has faced much greater difficulties in restarting units compared with its fellow power companies. The failure to restart nuclear power plants resulted in higher tariffs, about 21% more expensive than the cheapest power companies, which have succeeded in restarting nuclear power plants.
　The high cost of power has been a serious problem for Japan, as TEPCO supplies the most important regions in Japan, including the Tokyo Metropolitan area. The lack of nuclear power has also resulted in occasional concern about power shortages in the region. It also led to higher CO2 intensity of its power, which has been a problem for many companies seeking low-carbon power. The restart of KK 6 will improve the financials of TEPCO, which must continue paying for the damage caused by the nuclear accident and for the cost of dismantling the damaged nuclear power plant.
　The capacity of KK 6 is 1.36 GW, which is one of the two largest existing nuclear reactors in Japan. While the scale of KK 6 is impressive, the significance of the restart of KK 6 is that it will open the way for other nuclear reactors in KK to be restarted. KK is the host to seven nuclear reactors with a total scale of 8.22 GW, making it one of the largest nuclear complexes in the world.
　In the process of obtaining the consent from Governor Hanazumi, TEPCO announced its intention to explore retiring two of the older nuclear reactors at KK. But even with those retirements, KK will still have five units with a total scale of 6.02 GW. While authorization by the NRA is necessary for three of them, and consent by local governments will be needed for four of them, the process should be much smoother than the first one. With the successful restart of the five units, KK can help supply cheaper and zero-carbon power for various residential, commercial, and industrial users. This will be especially significant for data centers searching for cheap and zero-carbon power in an expedited time frame.
　The restart of Tomari 3 will be the first restart for HEPCO. HEPCO serves power to the island of Hokkaido, the northern island of Japan. Because of the island constraint and the dispersed population, HEPCO has historically been the power company with the highest power tariff. The failure to restart nuclear reactors after the Fukushima Daiichi nuclear accident has aggravated this problem, making the electricity tariff in Hokkaido about 36% more expensive than the cheapest power company. The restart of Tomari 3 is expected to improve the situation.
　Hokkaido is becoming a very promising industrial location. With its abundant land and water, it is considered as an ideal location for chip factories. Rapidus, a chip company with the ambition to produce nano level chips backed by the Japanese government, is located in Hokkaido. Data centers are also considering Hokkaido as a potential location due to its low temperatures, which help with cooling. Expensive and limited power have been constraints on locating chip factories and data centers in Hokkaido.
　The restart of Tomari 3 should alleviate such problems. The capacity of Tomari 3 is 0.91 GW. There are two more nuclear reactors in Tomari. Just as in KK, the process for restarting the other two reactors should be smoother than the first one. If the restart of all three nuclear reactors succeeds, the total capacity will be 2.07 GW. The scale of nuclear power in Tomari should make Hokkaido an ideal place to locate chip factories and data centers hungry for massive, cheap, and zero-carbon power.

3. Challenges for further restarts remain

Currently, 14 units have restarted in Japan. With the restart of KK 6 and Tomari 3, the number will reach 16, but Japan will still have 17 units offline and three under construction.
　There are three challenges. The first is the NRA process, which has taken as long as 12 years. While it is legitimate for the NRA, an independent regulatory body established after the Fukushima Daiichi nuclear accident, to be tough, the authorization process has taken much more time than most people expected. There are no time frames for the process, unlike the one-year time frame for existing units and 18-month time frame for new units in the US based on President Trump’s executive order. The necessary bar to satisfy is not made clear, and the necessary materials and data are not fully clarified in advance. There is multiple back and forth between NRA and the operators.
　Proof of non-existence of geological activity underneath the reactors for the past 120–130 thousand years has been the most difficult to satisfy. The simulation of the highest tsunami to possibly hit has also been difficult to satisfy for the NRA. Considering the importance of restarting nuclear units to lower the cost of electricity, lower CO2 emissions, and to supply reliable power, I hope the process will be rationalized. Safety must be the top priority, but there should be room for rationalization, transparency, and predictability.
　The second challenge is the public trust in nuclear operating power companies. On January 5, news broke out about a mishandling of data by Chubu Electric Power Company, supplying central Japan including the Nagoya region, in the NRA process. The data was used to calculate the expected scale of earthquakes to check the safety of nuclear reactors at Hamaoka nuclear power plant applying for restart. The mishandling of the data would erode the public trust in the company to restart nuclear reactors. Ensuring the public trust in nuclear operating power companies is absolutely the precondition for restarting.
　The third challenge is the consent of local governments. Local communities generally demand construction of roads that can be used in case of evacuation. These roads should certainly help various local activities in normal times. The Japanese government promised Niigata Prefecture it would help construct roads that can be used in the case of evacuation but can also be used in normal times.
　Local governments also need to show their people that nuclear power plants can bring economic benefits to the region. While nuclear power plants increase tax revenue, more must be done to promote industrial activities to generate jobs. The Japanese government is considering the introduction of subsidies to incentivize factories and data centers to locate near nuclear power plants. I hope the cost of power can also be lowered for factories and data centers choosing to locate near these nuclear power plants.

4. The process to “replace” nuclear reactors has started

In its 7th Strategic Energy Plan, approved by the Cabinet in February 2025, the Japanese government made clear that it will endorse “replacement” of existing nuclear reactors with new, safer nuclear reactors. Replacement will be allowed on a power company basis, not on a location basis. As most power companies have decommissioned nuclear reactors, the policy allows construction of new nuclear power units for most power companies.
　Based on the government’s new policy to endorse “replacement”, Kansai Electric Power Company announced its intention to start a study to replace one unit in Mihama and began the necessary geographical study in November. The local governments appear to be receptive to “replacement” to complement the two units decommissioned in the region.

5. More actions are necessary to realize “replacement”

The endorsement of replacement by the government is not enough to realize it. Considering the substantial investment required and the long time frame, the mechanism to enable the recovery of the investment must be strengthened. The government has already introduced the Long-Term Decarbonization Power Source Auction System, which ensures the payback of fixed costs for 20 years. The Auction System is not limited to nuclear power and can be used for other low-carbon power sources.
　The Auction System is powerful enough to incentivize various power sources, including investment for restarting nuclear units, but it is not necessarily sufficient to support “replacement” or investment for new nuclear power units. With the recent improvement of the Auction System, cost overruns of up to 50% can be covered. However, for new construction of nuclear power, much more must be covered. With the long lead time, cash payments during the construction period are desirable, not just after the start of operation.
　Liability for damages is another issue. The Fukushima Daiichi nuclear accident demonstrated that liability for nuclear accidents is unlimited in Japan. This is in contrast with most countries, which have limited liability legal frameworks in place. To ensure private sector companies decide to invest in new nuclear power units, I believe that the introduction of limited liability legal framework is desirable.
　As this will require legislation, the ruling coalition parties must seek support from one of the opposition parties, as they lack a majority in the upper house of the Diet. However, I believe that a legislation will not be easy, but possible. The new coalition partner, the Japan Innovation Party, is more pro-nuclear than the former coalition partner Komeito. The ruling coalition parties have just secured a majority in the lower house by recruiting three Diet members from the opposition. One opposition party, the Democratic Party for the People (DPP), is very pro-nuclear as it is supported by the labor unions of power companies. The ruling coalition parties can reach out for the support of DPP to secure enough votes in the upper house, where they do not have a majority.

6. Momentum is building for nuclear power

As you can see, momentum is building for nuclear power in Japan. The restart of nuclear power units is finally within reach for KK 6 and Tomari 3, opening ways for more restarts in the two locations. The process for “replacement” is starting.
　It is true that challenges remain. But the general public is supporting the restart. The recent poll by Yomiuri newspaper shows that 63% of the respondents support restarts with 26% opposed. With the politics generally in support of nuclear power, I believe the prospect for nuclear power is much more positive than at any time since the Fukushima Daiichi nuclear accident in 2011. In addition to confidence in safety being reestablished, the need for less expensive power, demand for reliable power, and the necessity of zero-carbon power are all backing the momentum for nuclear power in Japan.
　Japan can also be a good location for international companies in search for cheap, reliable, and low-carbon power in an expedited timeframe for their factories and data centers.