JAIF Report Details Economic Impact of Nuclear Power Plants
The Japan Atomic Industrial Forum (JAIF) has released a report detailing the economic impact of a single nuclear power plant throughout its operational lifecycle. The analysis, presented by JAIF President and CEO Hideki Masui, estimates a total economic impact of approximately JPY4.3 trillion across the Japanese economy for each plant. This figure includes direct and primary ripple effects, utilizing data from the government's 2025 Working Group on Verification of Power Generation Costs and Japan's 2020 Input-Output Tables.
During the construction phase, a single nuclear power plant project is projected to create around 14,000 jobs annually. From an energy security standpoint, JAIF noted that over 90% of nuclear plant equipment is procured domestically. Additionally, the report highlights a fuel stockpiling effect equivalent to 2.9 years, indicating the duration electricity generation could be maintained using existing nuclear fuel reserves in Japan. Environmentally, nuclear power generation produces no carbon dioxide emissions.
Policy Context and Future Plans
JAIF's analysis aligns with recent government initiatives, including the Ministry of Economy, Trade and Industry's draft target to replace up to five nuclear reactors by the 2040s and 11-14 reactors by the 2050s. In February 2023, Japan's Cabinet approved a policy allowing the construction of new nuclear power reactors and extending the operational lifespan of existing reactors from 40 to 60 years.
The government's 7th Basic Energy Plan, adopted in February 2025, aims to increase nuclear electricity generation from 8.5% in fiscal 2023 to approximately 20% by fiscal 2040. Concurrently, renewable energy's share is projected to rise from 22.9% to 40%-50%, while fossil fuels' share is expected to decrease from nearly 69% to 30%-40%.
Kansai Electric Power Company announced plans in July of the previous year to survey the Mihama nuclear power plant site in Fukui Prefecture for a potential new reactor to replace unit 1, which was decommissioned in 2015. Reports indicate that Kansai is considering the SRZ-1200 advanced light water reactor, developed by Mitsubishi Heavy Industries. This 1,200 MWe reactor, launched in September 2022, is designed to meet enhanced regulatory safety standards. JAIF noted that assessing the economic impact of newly built advanced light-water reactors is challenging due to the absence of such reactors in Japan.