Nuclear energy strategy in the environment of utility business deregulation

Nuclear power has contributed to the reduction and stabilization of electri city rate in Japan. However, its economic competitiveness has been eroding since mid 80's. Deregulation is hitting nuclear power just at the time its competitiveness is declining, and it poses a threat to drive short-sighted market orientation and precludes long term focus on achieving a balance bet ween "environmental agenda" and "competitiveness in market". Lowering the e lectricity rate is one of the important agenda to improve the nation's indu strial competitiveness in the global market. However, it will be very diffi cult to win the competition of gas and oil prices with other developed coun tries in Europe and North America due to a handicap of long transportation distance. Only nuclear power and natural energy have no relation to such a handicap of economic distance from resources. Without securing economic sup eriority of those energy sources, Japan will not be able to clear the handi cap of energy costs. The Japanese utilities are trying hard to regain the c ompetitive edge of nuclear power. We have established short-term strategies for both existing and new LWRs as well as a long-term strategy for technol ogical development. With these strategies we will be able to regain the com petitiveness of nuclear power. (C) 2000 Elsevier Science Ltd. All rights re served.