Fukushima Daiichi Accident Elicits Strong Reactions in Japan and Abroad

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Researched by Industrial Info Resources East Asia (Kofu-shi, Japan)--In the wake of the trouble surrounding Fukushima Daiichi nuclear power station, Tokyo Electric Power Company Incorporated (TYO:9501) (TEPCO) (Tokyo) has announced that it will decommission units 1 through 4 of the power station. Even if the boiling water reactors were salvageable, rehabilitation would take years, and restart would require strong public support. The fate of units 5 and 6 remains undetermined. However, these will likely be decommissioned as well.

TEPCO has also suspended work at its section of the Higashidori nuclear site in the Aomori prefecture, as well as plans for the construction of three other nuclear reactors. Similar actions are also being observed for other power providers in Japan. Several suspensions include restarts of reactors currently down for maintenance.

Rumors of nationalizing TEPCO appeared in the Yomiuri newspaper on Tuesday, March 29. The story was sourced from unidentified government sources. However, Yukio Edano, Japan's chief cabinet secretary, has gone on record to say that this is false and that there are no such plans at this time. Nationalization of Japan's largest power provider would require a massive move within the government and would be ill-timed since Japan is still in the midst of a crisis.

TEPCO has requested assistance from several French companies, including Areva SA (EPA:CEI) (Courbevoie, France), and is also receiving nuclear experts from South Korea. Banks and financial institutions in Japan, including Mitsubishi UFJ, Sumitomo Mitsui Financial Group, and Mizuho, are also considering handing over emergency loans totaling nearly $25 billion to TEPCO to repair other power stations affected by the March 11 earthquake and tsunami. Currently, 9.8 gigawatts (GW) of power typically provided by three thermal plants is offline, while 6.2 GW of nuclear power remains offline.

The Fukushima Daiichi crisis has had global effects. Italy recently announced that it has suspended the reintroduction of nuclear power in the country, while Germany is in the process of closing its oldest nuclear power stations. In Europe, 143 reactors are scheduled for stress tests, and the United States and Japan are conducting safety reviews of existing plants. For additional information, see recent IIR articles Europe's Nuclear Reactors Face 'Stress Tests' and Italy Freezes Nuclear Plans. The United States' concerns are primarily about the vulnerability of spent fuel pools. Japan has ordered safety upgrades for all operational reactors. Currently, Japan is unsure of how Fukushima Daiichi will affect recent nuclear agreements signed with Vietnam or any possible future agreements with other countries.

This week, the prime minister of South Korea announced that there are no plans to forgo the development of nuclear energy in the country, despite protests. South Korea has assured the highest levels of safety for the four advanced boiling water reactors (ABWR) planned for the United Arab Emirates. A consortium led by Korea Electric Power Corporation (NYSE:KEP) (KEPCO) (Seoul, South Korea) began construction of the first ABWR southwest of Ruwais in Abu Dhabi last July.

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