Japan Civil Nuclear Power
Japan’s renewed commitment to nuclear energy presents significant opportunities for U.S. civil nuclear companies looking to introduce their advanced technologies, services, and equipment to existing Japanese electric power companies. With the Government of Japan (GOJ) revising its energy strategy, major Japanese utilities moving forward with new nuclear projects, and new financial support measures in place, U.S. firms should act now to build relationships with Japanese utilities and manufacturers.
On July 22, 2025, Japan’s Kansai Electric Power Company (one of the country’s 12 electric power utilities) announced its plan to build a new nuclear power plant at its Mihama Nuclear Power Station (home to three reactors, one of which was restarted in 2021 and two of which are to remain dormant) in Fukui Prefecture. The new plant will adopt a next-generation advanced light water reactor—an improved, safer version of the conventional pressurized water reactor that features hardened construction and “core catching” technology. Kansai Electric has commissioned a geological survey of the Mihama plant site and surrounding areas, marking the first milestone of the construction of a new plant.
Other Japanese utilities are considering their own new nuclear builds. Prior to Kansai Electric’s announcement, in its May 2025 Management Vision 2035, the Kyushu Electric Power Company highlighted its consideration of developing next-generation advanced reactors. Nuclear reactor restarts are also continuing throughout Japan; most recently Hokkaido Electric Power Company’s Number 3 reactor at the Tomari Nuclear Power Station passed a safety screening by Japan’s Nuclear Regulation Authority on July 30, 2025. This was the 18th reactor to pass restart screening in Japan (14 have already been restarted), and the Tomari Number 3 could be restarted as early as 2027 if local village and town governments grant approval.
These developments are taking place as the Government of Japan (GOJ) in February 2025 revised its Strategic Energy Plan. While the country previously expected an electricity demand decrease, recent technological developments such as AI and the proliferation of data centers have led to forecasts for a power demand increase of 1.4 times (base 2019) and as high as 1.25 trillion kilowatt-hours by 2050. These projections have, along with changing popular opinion and energy security concerns, shifted GOJ policies from promoting a reduction in reliance on nuclear power to promoting new nuclear constructions and restarts.
To further encourage investment, on June 25, 2025, Japan’s Ministry of Economy, Trade and Industry (METI) finalized a support measure to allow increased construction costs of nuclear power plants built under Japan’s Long-Term Decarbonized Power Source Auction (LTDPA) system to be recovered through increases in household electricity bills. Introduced in 2024, the LTDPA promotes new investments in carbon-free energy sources (including nuclear) by reimbursing fixed costs (such as construction and labor) for selected new projects over a 20-year period. The LTDPA is administered by the Organization for Cross-regional Coordination of Transmission Operators of Japan (OCCTO), who is responsible for overseeing Japan’s electricity supply, demand, and transmission operations.
METI has introduced this support measure to encourage applications for new nuclear power plant construction under the LTDPA, as there have been no bids for new nuclear plants in the first two bidding sessions (held in October 2023 and October 2024). Potential nuclear plant operators have thus far been hesitant to participate in the program—which requires applicants to commit in advance to energy pricing as part of the application—due to the financial risks of nuclear plant construction cost overruns that could arise from the tightening of safety regulations by Japan’s Nuclear Regulation Authority. Under the METI support measure, however, nuclear plant operators would be eligible to recuperate construction cost increases (up to 50 percent) related to complying with regulations, inspections, and administrative guidance.
CS Japan believes METI’s support measure may open the door for new nuclear builds under the LTDPA, creating opportunities for U.S. civil nuclear energy technology and service providers. For U.S. nuclear companies looking to participate in new Japanese nuclear projects, introducing their technologies to existing Japanese electric power companies and nuclear manufacturers is a key first step. CS Japan’s network includes, inter alios, procurement managers of the Japanese electric utilities and key private sector players. For more information, please contact the U.S. Commercial Service at Office.Tokyo@trade.gov.