Japanese power companies' nuclear expenses up 12% in 2018

Capital investment in nuclear sharply rose by 40%.

Nuclear-related expenditures by electric power companies rose 12% YoY in FY2018, driven by a jump in capital investments, according to a survey by the Japan Atomic Industrial Forum (JAIF). Capital investment surged 40% and fuel and materials costs also grew by 28%.

Nuclear-related sales in Japan dipped 9% YoY to $14.76b (JYP1.61t) in FY2018 from $16.22b (JYP1.77t) in FY2017, whilst nuclear-related backlogs mining and manufacturing firms also slid 11% over the same period.

Nuclear-related sales by category of industrial focus also dropped 23% and decommissioning 25%.

The number of nuclear-related workers grew slightly from the previous year in mining, manufacturing and electric power companies.

In terms of business sentiment in industries related to nuclear power, 80% are expecting 2020 to be worse than that of 2019.

In regards to the effects of the shutdown of the country’s NPPs, many respondents continued to point to reduced sales (58%) and difficulties in maintaining and continuing their technological capabilities (56%).

Most of those choosing the latter cited decreased on-the-job opportunities (83%), followed by difficulties in securing employment (31%). Dilution of technology and know-how by other company’s withdrawal, dissolution, etc. (26%) rose 9 points from the previous year.

As for the elements necessary to successfully maintain the domestic nuclear power industry, the most common answer selected was the consistent promotion of nuclear policy by the government at 73%. This is followed by restoration of public confidence in nuclear power at 59%, and early restarts of NPPs and stable NPP operation at 58%.