Japan Panel Calls for Revising Grants for Hosting Nuclear Plants

Tokyo, Dec. 25 (Jiji Press)--An advisory panel to the Japanese industry ministry has indicated the need to revamp a grant program for municipalities hosting nuclear power plants in order to make them more willing to approve restarts of idled reactors. Under the program, grants are given in proportion to the amount of electricity produced. Currently, all nuclear reactors in the country are offline, but host municipalities are receiving grants on the assumption that the reactors are operating at 81 pct of their output capacities. Given that the average operating rate among running nuclear reactors is usually about 70 pct, host municipalities could see their grants decrease after they allow reactor restarts. The fairness of the program should be ensured by taking into account nuclear reactors' actual performances, the panel said in an interim report Wednesday on the ongoing review of the country's nuclear energy policy. The Japanese government may thus consider cutting subsidies for idled reactors. Also in the interim report, the panel left open the possibility of aging nuclear reactors being replaced with new ones, while the government has denied building new nuclear facilities. The report showed a panel member's view that it is difficult for power companies to decide how to deal with aging reactors unless the government clarifies a long-term nuclear energy policy including ways to make up for power supply falls after aging reactors are decommissioned. The panel also urged the government to look for new locations for storing spent nuclear fuel. END