Summary of Comments Made at a Press Conference by Hiroji Ohta, FEPC Chairman, on January 21, 2000

I welcome members of the Energy Press Club to the first FEPC press conference of the year. I would like to take this opportunity to thank you for your hard work during the Y2K transition period, and say that I look forward to working with you again this year.

Regarding the Y2K problems that the entire nation feared might occur as the year turned, I am pleased to say that there were no blackouts or interruptions in service at any of our generating facilities.

As is shown in Reference Document 1, however, there were minor Y2K-related problems with recording and monitoring systems at some nuclear power plants. Although the problems did not affect operations, and were quickly repaired, their occurrence was a disappointment in view of the thorough preparations we had made for the Y2K transition. It is also true that there were some regrettable lapses in communication.

We are currently working closely with equipment manufacturers to determine the causes of the problems we experienced, and ensure that they do not occur again. We also have a "Leap Day" coming up on February 29, and will apply what we learned during the Y2K transition to ensure that no problems arise at that time.

As I stated at the last press conference, this is a year of big change for the electric power industry. First of all, in March, deregulation of the special high-voltage customer market will begin. Secondly, a number of developments are expected in the area of nuclear fuel recycling and waste disposal. A new law affecting high-level radioactive waste disposal will be enacted, and a new body established to coordinate disposal operations. An appropriate site must also be found for the spent-fuel interim storage facility, and a new safety agreement must be finalized for the Rokkasho Fuel Reprocessing Plant.

There is also expected to be considerable discussion of the nation's long-range nuclear energy plans. In addition, the Advisory Committee on Energy Policy established a New Energy Section last December to discuss new energy sources. In the future, much attention is expected to be focused on these new energy sources, and on our responsibility to incorporate renewable energy into the power grid. [ Reference 2 ]

With discussion of these topics just beginning, those of us in the electric power industry feel that it is important to keep the following considerations in mind.

First, whatever new energy technologies are discussed, we believe they should be considered within the framework of the nation's nuclear and other energy policies, and that a national consensus should be reached on their use. Whenever countries set out to define energy policy, they must consider their energy situation and act accordingly, and this is certainly true with new forms of energy. In deciding what type of energy a resource-poor nation such as Japan should depend on, we must not over-reach ourselves. We must choose between various alternatives -- we cannot have them all. It is for this reason that we believe that nuclear energy and new energy sources should be discussed within the framework of Japan's overall energy policy.

Another obvious but important point I would like to make is that discussions should be based on facts and current realities.

Many people seem to think that the electric power industry is less than enthusiastic about the development of new energy sources, particularly renewable energy sources. On the contrary, we have absolutely no objection to maximizing the potential of Japan's precious solar and wind resources. In fact, we have independently supported the development of new energy sources for a number of years. We already purchase all available solar-generated power at standard rates, and for over 15 years, we have maintained a price menu for purchasing wind-generated power for commercial use that is over twice the rate we pay for thermal-generated power.

People also seem to think that Japan lags behind Europe and the United States in the implementation of new energy sources. In fact, thanks to government support and our own efforts in the private sector, Japan produces more solar-generated power than any other nation -- outpacing even the United States, which in 1998 utilized only 1,000,000 kW of solar-generated power, as compared with Japan's 1,330,000 kW. In addition, our utilization of wind-generated power has grown rapidly in recent years. As we discuss the future of Japan's energy policies, I hope that these facts, as well as the effects of market deregulation, will be kept in mind.

Given the extremely high expectations people have for new energy sources, the discussion has a tendency to become a bit skewed at times. For example, great things are expected of solar and wind power because they are renewable and easy on the environment. However, I would like to make the following points to keep the matter in perspective.

1) The land area required to build a solar generating facility capable of equalling the million-kilowatt output of a single nuclear power plant is approximately 130 square kilometers. That is an area approximately twice the size of central Tokyo, and approximately 360 times the size of a nuclear power plant.
2) In the case of wind power, because output fluctuates, the need to maintain a constant frequency constrains the amount of power that can be utilized. In addition, a back-up power supply must be maintained.
3) According to figures released by the Energy Department, to replace the amount of electricity currently produced by nuclear energy with solar or wind energy would require an investment 3 times greater, in the case of wind power, or 30 times greater, in the case of solar power.

I believe that it is essential that the discussion of how these negative factors are to be evaluated, and whether they can be overcome, be based on actual facts and figures.

The current debate on our long-range nuclear energy and new energy policies will -- along with electric power industry deregulation -- have a profound effect on the nation's economy, society and energy policy in the 21st century. I therefore hope, as I stated earlier, that we can clearly define the role of nuclear energy and new energy sources within the framework of our overall energy policy, and achieve a national consensus.

In conlclusion, I would like to say that I always welcome the comments and suggestions of Energy Press Club members, and thank you for your attendance today.