Publication date: March 2, 2026
Japan Accelerates Nuclear Restarts and Amends Public Financing Rules
On February 16, Tokyo Electric Power Company (#TEPCO) resumed power transmission from Unit 6 of the Kashiwazaki-Kariwa Nuclear Power Plant in Niigata Prefecture, marking the first transmission from the unit in 14 years. It is the second reactor restart in East Japan since the Fukushima accident, following Tohoku Electric Power’s Onagawa Unit 2 in 2024. The unit will undergo final inspections, with commercial operation targeted for March 18. Looking ahead, Hokkaido Electric Power is also moving toward restarting Unit 3 of the Tomari Nuclear Power Plant, aiming for a restart in 2027.
The current administration is keen to see nuclear plants restart. Prime Minister Takaichi stated in a recent policy speech that the government will accelerate the restart of reactors whose safety has been confirmed, while also advancing concrete plans for the development and deployment of next-generation advanced reactors (CAS).
However, nuclear power projects face challenges due to long investment horizons of more than a decade and capital costs reaching several trillion yen, making financing through private loans or bond issuance difficult. To promote nuclear investment, the Ministry of Economy, Trade and Industry (METI) is moving to amend the Electricity Business Act and related laws to enable partial public financing of nuclear project costs (Nikkei), which could stimulate new investment in the sector.
🔍 Shulman Commentary:The government plans to increase Japan’s nuclear power share in its energy mix to around 20% by FY2040, up from 8.5% in FY2023. This nuclear expansion serves two primary objectives: strengthening energy security and advancing decarbonization targets alongside the rollout of renewable energy. For generators and retailers, the pace and scale of restarts will materially reshape wholesale price formation, capacity margins, and hedging strategies.
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