The Japan nuclear power reactor decommissioning market is expected to rise at a CAGR of more than 3% during the forecast period of 2020-2025. Factors such as nuclear power reactors reaching operational retirement are likely to drive the Japan nuclear power reactor decommissioning market. However, the high cost of decommissioning nuclear plants is expected to restrain the Japan nuclear power reactor decommissioning market.
- Due to being uneconomical compared to other energy sources, the commercial power reactor is expected to be the largest segment and is likely to dominate the Japan nuclear power reactor decommissioning market.
- Increasing the use of robots and artificial intelligence in the decommissioning of the nuclear reactor, which is safer and is likely going to create several for the Japan nuclear power reactor decommissioning market in the future.
- Increasing renewable energy installation, which is cheaper and cleaner, is expected to drive the Japan nuclear power reactor decommissioning market during the forecast period.
Key Market Trends
Commercial Power Reactor Expected to Dominate the Market
- The commercial power reactors are the nuclear reactors that are mainly used for generating electricity. Most of these reactors are being installed in nuclear power plants. Moreover, increasing renewable energy from solar and wind is much cheaper and cleaner.
- As of 2019, 24 commercial reactors are designated for or are being decommissioned. Among them are four reactors at the Fukushima Daichi plant that were severely damaged by the massive 2011 earthquake and tsunami that struck northeastern Japan.
- In 2019, the total electricity produced by nuclear energy in Japan was 65.6 terawatt-hours (TWh), which was higher than the region produced in 2018, 49.1 TWh. The country has exponentially reduced nuclear power used to generate electricity after the earthquake of 2011, which caused a nuclear leak in one of the country's rectors.
- As of March 2020, around 27 nuclear reactors with a combined capacity of 17.12 GWe have been shut down. In late 2019, Japan's nuclear policy-setting body adopted a report stating that the country is entering an era of massive nuclear plant decommissioning, urging plant operators to plan to lower safety risks and costs requiring decades and billions of dollars.
- Hence, owing to the above points, the commercial power rector segment is likely to dominate the Japan nuclear power reactor decommissioning market during the forecast period.
Increasing Renewable Energy Expected to Drive the Market
- Japan, for the last decade, was mostly dependent on nuclear power, but after the incident of 2011, nuclear power in the country drastically reduces. The event made the country review and shut down most nuclear reactors and focus more on renewable energy, which is safer and cheaper.
- Japan, being an island nation, has many suitable locations for offshore wind power generation. The country analyzed that offshore wind turbines can generate five times more electricity than onshore wind turbines. Also, there are land constraints for the development of onshore wind farms in the future. Owing to this, the government aims to promote offshore projects, and at the same time, introduce necessary laws to reduce operators' risks and encourage new entries for the companies.
- In 2019, the total renewable energy installation capacity in Japan was 97.46 gigawatts (GW), less than the country's installed capacity of 2018, 90.57 GW. The increasing capacity of renewable energy in the country exhibits a cheaper and safer form of generating electricity, which is expected to drive the nuclear power reactor decommissioning market.
- In March 2020, Toshiba Energy Systems & Solutions Corporation announced that it received an EPC services order for construction of the Onikoube Solar Power Plant, in the city of Osaki in Miyagi Prefecture, North-East Japan. The plant is being planned by PurpleSol G.K., an affiliate of Thai Solar Energy Public Company Limited, which is one of Thailand's leading renewable energy companies. This large-scale solar power plant is likely to have a generating capacity of 147 MW, which is the largest EPC order received by Toshiba ESS. The plant is scheduled to go into commission in December 2022.
- Hence, owing to the above points, increasing renewable energy is expected to drive the Japan nuclear power reactor decommissioning market during the forecast period.
The Japan nuclear power reactor decommissioning market is moderately consolidated. Some of the key players in this market includeHitachi-GE Nuclear Energy, Ltd., Japan Atomic Power Co., Snc-Lavalin Group Inc (Atkins), Tokyo Electric Power Company Holdings, Inc., and Orano SA.
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Table of Contents
1.2 Market Definition
1.3 Study Assumptions
4.2 Market Size and Demand Forecast in USD billion, till 2025
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5.1.1 Pressurized Water Reactor
5.1.2 Pressurized Heavy Water Reactor
5.1.3 Boiling Water Reactor
5.1.4 High-temperature Gas-cooled Reactor
5.1.5 Liquid Metal Fast Breeder Reactor
5.1.6 Other Reactor Types
5.2.1 Commercial Power Reactor
5.2.2 Prototype Power Reactor
5.2.3 Research Reactor
5.3.1 Below 100 MW
5.3.2 100-1000 MW
5.3.3 Above 1000 MW
6.2 Strategies Adopted by Key Players
6.3 Company Profiles
6.3.1 Hitachi-GE Nuclear Energy, Ltd.
6.3.2 Japan Atomic Power Co.
6.3.3 TÜV Rheinland Group
6.3.4 Snc-Lavalin Group Inc (Atkins)
6.3.5 Tokyo Electric Power Company Holdings, Inc.
6.3.6 Orano SA
6.3.7 Toshiba Corp