Japan’s Ministry of Economy, Trade and Industry is introducing a new initiative to provide state-backed loans covering up to 30% of costs for long-term nuclear projects, aiming to revive an industry slowed since the 2011 Fukushima disaster, according to EnergyNews. With only 14 of 33 available reactors currently operating, the funding is intended to help operators restart reactors, upgrade safety systems, or build new units. Japan plans to raise nuclear energy’s share of electricity to 20% by 2040, requiring the restart of 15–16 reactors to meet rising demand, including from AI data centers. The program also addresses aging reactors and the high costs of new builds, while government support signals a broader push for energy security and reduced reliance on fossil fuels. They write:
Japan’s Ministry of Economy, Trade and Industry has announced a new initiative to ease access to public funding in the nuclear sector, with state-backed loans covering up to 30% of the total needed for long-term projects. This measure is intended to revive an industry largely stalled since the Fukushima disaster.
Since 2011, out of the 54 nuclear reactors Japan once operated, only 14 out of 33 technically available units have resumed service. The complexity of new safety standards and local opposition have slowed restarts, but several indicators point to a gradual recovery. Niigata Prefecture is expected to vote soon on restarting two of the seven reactors at the Kashiwazaki-Kariwa plant, the world’s largest nuclear facility. […]
The need is significant. Japan aims to increase the share of nuclear energy in electricity production to 20% by 2040, up from around 10% today. To reach this target, an additional 15 to 16 reactors need to be restarted. This expansion is seen as essential to meet a projected 6% increase in electricity demand, driven notably by artificial intelligence data centres. […]
According to the World Nuclear Association, restarting a reactor costs between $700mn and $1bn, with Japan’s seismic safety standards likely pushing costs to the upper range. Public funding between 30% and 50% may be required to ensure economic feasibility. […]
Among the planned restarts, two 1.36 GW reactors at the Kashiwazaki-Kariwa site are expected to return to service in 2026 and around 2030. The Tomari-3 reactor operated by Hokkaido Electric Power Co has also received approval from the prefectural governor. Other units operated by Chubu Electric Power Co, Tohoku Electric Power Co and Hokuriku Electric Power Co are still awaiting regulatory decisions.
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