New subsidy system designed to expedite restarts of nuclear reactors

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The Abe administration has earmarked 1.5 billion yen ($12.75 million) for a new subsidy system designed to accelerate restarts of idled nuclear reactors and to convince residents that nuclear plants are safe.

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New subsidy system designed to expedite restarts of nuclear reactors
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The Abe administration has earmarked 1.5 billion yen ($12.75 million) for a new subsidy system designed to accelerate restarts of idled nuclear reactors and to convince residents that nuclear plants are safe.

The figure was included in the draft budget for fiscal 2015, which was finalized on Jan. 14.

The fiscal 2015 draft budget also includes 91.2 billion yen for an existing annual grant system that targets regions hosting nuclear power facilities. These subsidies are provided to local governments based on power production at each nuclear plant they host.

Under the new system, prefectural governments that host nuclear reactors will receive grant money when the reactors resume operations or are later stopped so that the negative impact on local economies can be alleviated.

Although the local governments will be able to decide how to spend the funds, the subsidies are expected to be used, for example, to conduct monitoring surveys to prevent the spread of groundless rumors about nuclear power. The central government also wants prefectural authorities to use the funds to hold explanatory sessions to convince residents of the safety of nuclear plants.

All of the nation’s reactors are currently offline in light of stricter safety standards introduced after the Great East Japan Earthquake and tsunami triggered the Fukushima nuclear crisis in March 2011. The administration decided on the figure for the existing subsidy system based on the assumption that all reactors are operating at 81 percent of capacity.

The Abe administration will revise the estimate for fiscal 2016 so that local governments that host restarted reactors will be able to receive larger amounts than other regions.

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