Research Plans&

Statement of Budget
FY 2012
March 2012
Central Research Institute of Electric Power Industry

Contents

Research Plans in FY2012
Page
No.

On Preparation of FY2012 Research Plans and Statement of Budget ・・・・

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Overview of FY2012 Business Activities

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Research Activities

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Research plans

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II．Research promotion

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Administration

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Workforce・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

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Budget Compilation

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Budget・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

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I.

Statement of Budget

Research Plans

On Preparation of FY2012 Research Plans and Statement of Budget

The Great East Japan Earthquake and the Fukushima Daiichi nuclear disaster has wrought
severe damage on Japan’s economy and society. To ensure a speedy recovery from this point
requires a new energy supply/demand structure for Japan that is both flexible and robust andthe redevelopment of a mechanism that can continuously support this structure. In addition,society is scrutinizing the electric power industry more rigorously now, demanding not only astable supply of power, but also cost-cutting, the restoration of the public’s trust in the safetyof nuclear power, and adaptations in the face of reforms in the electric power industry’s
system going forward.
With a strong awareness of this situation, CRIEPI is expanding its research activities as a key
research institute for advanced learning in the electric power industry, in line with its mission
to continue sharing and providing research results resting on scientific objectivity with theelectric power industry and the public. Specifically, we are addressing issues that emergedwith changes in the electric power industry and society after the earthquake, issues that must
be resolved to support the stable power supply, and issues that must be resolved to build afoundation for the future supply and demand of electricity. Research related to earthquake
recovery and reconstruction, such as addressing the Fukushima Daiichi nuclear disaster, willremain our highest priority as we work to resolve problems as soon as possible.
At the same time, it is essential that we enhance our research capacity without fail toachieve these goals. Accordingly, we will establish a research base that will facilitate effective
and efficient research and strengthen our basic research capacity, and steadily build andexpand “knowledge” networks both in Japan and overseas.
In addition, in fiscal 2012 we plan to become a general incorporated foundation and will goeven further in independently pursuing research activities, including the aforementioned
initiatives, in line with the spirit behind the reformation of the public interest corporation
system. In particular, it is even more essential now that CRIEPI continually generate highvalue-added results, given the limited research funds now that the electric power industry
faces such harsh conditions. This means that we must transition to a strong research systemthat is adapted to these new conditions. Accordingly, we will concentrate on carefully selected
research issues and take measures to ensure the quality of our results despite funding cuts,
while at the same time steadily reducing operating costs and personnel costs. Moreover, we
will remain accountable for our activities overall by implementing external reviews andevaluations of research value, thus earning the trust of the electric power industry and society.

-1-Under this plan, all CRIEPI employees will work together on these business activities,
contributing to the electric power industry and society.

-2-Overview of FY2012 Business Activities
Research Activities＜Research Plans＞
CRIEPI aspires to resolve the issues that emerged following the Great East Japan Earthquake
and the nuclear power plant accident and the issues that demand a new response from theelectric power industry and develop a more flexible and robust energy supply/demand
structure and the mechanism to support it. Accordingly, we thoroughly reviewed the relative
priority of our research subjects and in fiscal 2011 we revised the pillars of our research,which lay out the medium-term direction of our research.
In fiscal 2012, CRIEPI will pursue research under the three research pillars described
below in the three new research subject categories of priority subjects, priority subjects withlimited terms and basic technology subjects. Priority subjects and priority subjects withlimited terms that are highly inter-related will be grouped together in “subject groups” as we
endeavor to produce and disseminate effective results by incorporating a wide range oftechnologies.
In addition, we will contribute to the prompt resolution of the urgent issues facing theelectric power industry, such as the research to support the recovery from disaster, bycontinuing to allocate our research resources to priority areas, utilizing our accumulated
knowledge and pursuing research in affiliation with all research centers.
(1) Initiatives to establish optimal risk management will include recommending energy andenvironmental policies, nuclear power plant safety, radiation risks, nuclear fuel cycle
and backend technologies and natural disaster reduction on transmission anddistribution facilities . These initiatives will help to reduce the risks involved with thestable supply of electricity and facilitate its management.
(2) Initiatives to further improve facility operations and maintenance technologies include
nuclear power plant maintenance, construction, operation and maintenance of power
generation facilities, operation and maintenance support for electric power transmission
and distribution facilities, to provide technical support for the stable power supply, theresponsibility of the electric power industry.
(3)Initiatives to develop a supply/demand infrastructure for next-generation electric powersystem include, next-generation thermal power technologies, next-generation power
grid technologies, and electrification and energy- saving technologies, and will makecontributions to further enhance the efficiency of electricity supply and electricity use,
ensure energy security, and realize energy conservation and low carbonization.

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＜Research Promotion＞
In pursuing our research, we will focus our efforts as follows.
・Steadily pursuing research related to the disaster recovery recognizing the shift fromshort-term issues to medium- to long-term issues as the recovery and reconstruction
progresses
・Making the transition to a strong research system that can produce high-value results
despite falling research funding and maintaining and strengthening our research capacityand problem-solving capacity
・Strengthening initiatives that accurately identify the needs of the electric power industry
and society

Administration and Workforce
We will pursue appropriate operations and take steps to maintain and expand our research
institute with a strong awareness of the harsh business environment affecting CRIEPI and the
public’s scrutiny. We will continue to monitor changes in the business environment andconsider and carry out countermeasures tailored to these changes.
・Thorough cost-cutting corresponding to changes in the business environment and soundand rigorous administration
・Establish a research laboratories to strengthen our research foundation
・Attract more recognition and better evaluations from the public by strategically disclosing
high-quality results
・Reduce personnel costs and curb the total workforce, while pursuing measures to hire,
train and utilize personnel appropriately

Income and Expenditure Budget
The budget for CRIEPI operations was increased by 1.03 billion yen over the previous fiscal
year to 33.3 billion yen in fiscal 2012.
Revenue from donations, which accounts for most of CRIEPI’s revenue is expected toamount to 27 billion yen, its lowest level in the past 20 years.
As a result, we will strive even harder to reduce operating costs, and have set the budget forbusiness activity expenditures for research activities and administration at 23.7 billion yen,-4-

down 1.65 billion yen over the previous fiscal year.
At the same time, expenditures on investing activities have been increased by 2.68 billion
yen over the previous fiscal year to 9.6 billion yen so that we can continue to strengthen our
research capacity and problem-solving capacity to assist with the recovery and reconstruction
from the earthquake and rebuild a robust power supply system. In particular, expenditures on
fixed assets, which primarily consists of research facilities, will be increased 4.08 billion yen
over the previous fiscal year to 8.2 billion yen. Part of this facility investment will be coveredby a 4.1 billion yen reduction in specific assets systematically set aside thus far.

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Research Activities
I Research plans
CRIEPI pursues research based on the research pillars listed below, which represents the
direction of our research in the medium term, and meets requests from the electric powerindustry and society.

<Pillars of CRIEPI’s Research>
Establishment of Optimal Risk Management
CRIEPI will assess the impact of natural phenomena and socio-economic changes on
the electric power industry and propose countermeasures that encompass social systems
and mechanisms with the aim of reducing and managing risks to the stable supply ofelectric power.
Further Improvement of Facility Operations and Maintenance Technologies
We will develop more advanced operation and maintenance technology for power
generating facilities and power transmission and distribution facilities in order toprovide technical support for the stable supply of power, the primary responsibility ofthe electric power industry.
Development of a Supply/Demand Infrastructure for Next-Generation Electric PowerTo prepare for future risks, CRIEPI will endeavor to minimize and overcome these risks
by building a next-generation foundation that ensures greater efficiency and energy
security on both the energy supply side and energy use side. We will also preemptively
address issues to create an energy-saving, low carbonization society.

1. Priority subjects and priority subjects with limited terms
CRIEPI closely reviewed the research subjects it has studied thus far in its history and thennarrowed these down to technologies indispensable to the electric power industry or
essential in the future. Of these, CRIEPI identified 33 priority subjects into which we willchannel our collective strengths as we continue, carry on and expand our research.
In addition, CRIEPI identified nine priority subjects as “priority subjects with limited
terms.” These are issues that should be urgently resolved and that will make significant
contributions to the electric power industry and society. We will ensure steady generation
and utilization of results with strict progress management when carrying out research inthese areas.
We have grouped the priority subjects and priority subjects with limited terms into 11-6-subject groups based on the subjects that would be enhanced by cooperation in order toensure that research is conducted effectively. Below we outline that main research plansthat support our research for each subject group.

(1) Establishment of optimal risk management
With the aim of reducing risks associated with the stable supply of electricity andstreamlining management, CRIEPI recommends energy and environmental policies that
can achieve social consensus into the future from a scientific and objective perspective. In
addition, we are grappling with the issues of improving the safety of light water reactors
and clarifying radiation risks—urgent issues for the electric power industry since the
Fukushima Daiichi nuclear disaster—and are working to develop the technology needed toalleviate these risks. Moreover, in addition to research contributing to effective natural
disaster countermeasures for transmission and distribution facilities, we are steadily
pursuing research supporting the nuclear fuel cycle and backend technologies, such as thegovernment and electric power industry’s radioactive waste disposal programs.
Energy and Environmental Policies
 CRIEPI proposes approaches to the electric power industry system that can achievesocial consensus into the future from a scientific and objective perspective.
 We put together approaches to energy and environmental policy related torenewable energy and energy-saving technology development and strategies topopularize these technologies. We then evaluate the impact of these policies on theelectric power industry’s management and society, and propose systems andpolicies that would help ensure energy security and resolve environmental
problems.
 Regarding the reduction of greenhouse gases, CRIEPI develops numerical models
that quantify changes in temperature from emissions volume and the uncertainty ofthese changes, and lays out rational long-term emissions pathways with their basis.
Nuclear power plant safety
 CRIEPI makes quantitative assessments of the risk of severe accidents caused byinternal events and external events such as natural disasters in order to win the
public’s acceptance of nuclear power generation.
 We will develop a stochastic evaluation system, leading up to the evaluation of coredamage frequency, and will clarify the vulnerable points of light water reactors forwhich external events are the common cause.
 We will propose methods for recognizing tsunami deposits, which can determine
the timing and scale of past tsunami, and will also develop a strong shake generator-7-

that can experimentally identify the moving function of nuclear power equipments
under high acceleration to establish a safety evaluation system for natural disasters
such as earthquakes and tsunami.
 We aim to establish evaluation methods of radioactive substance in the atmosphereand ocean, long-term variation of radioactive substances in the environment. The
rational fire protection measures within the power plant are also aimed to beestablished.
Radiation risks
 We will compile data on the health effect of low dose rate radiation exposure so thatthe public has an proper understanding, with the aim of relieving the social
radiation fears and establishing a radiation protection system with scientific basis.
 We will evaluate the health risks to human of low dose radiation exposure based on
the results of researches by epidemiological studies and by identifying themechanisms through animal experiments. Using this scientific knowledge, we willpropose an rational approach to standards for radiation protection.
 These research results will be reflected in international radiation protection
standards, through proactively sharing the information with the authorities andcommunities concerned.
Nuclear fuel cycle and backend technologies
 Given that radioactive waste disposal programs and long-term storage programs ofspent nuclear fuel are crucial for the ongoing operation of light water reactors, wewill develop technology to safely pursue these programs in a streamlined manner.
 We will propose testing methods to evaluate the long-term functionality ofgeological strata (natural barriers) and buffers using bentonite and cement materials(engineered barriers).
 CRIEPI will develop remote measurement methods by using laser irradiation forthe concentration of chloride attached to surface, which causes stress corrosion
cracking in metal canisters inside casks, with the aim of bringing the inexpensive
and reliable concrete cask storage into practical use for spent nuclear fuel storage.
Natural disaster reduction on transmission and distribution facilities
 We will evaluate the risk of natural disasters at transmission and distribution
facilities and develop risk management methods and countermeasure techniques.
 CRIEPI will develop a short-range precipitation forecast method that provides
forecasts a few hours in advance incorporating dual polarization radar data to
reduce meteorological disasters and speed up disaster recovery.
 We will work to raise the accuracy of prediction methods for snow accretion on-8-

transmission lines to redress wind and snow damage at transmission facilities, andwill carry out experiments and analysis to propose the optimal measures to counter
snow-related damage.
 In order to reduce lightning damage of power facilities and information andcommunication equipment, we will clarify the relationship between lightning
striking characteristics and damage through analysis of observational data taken inultra-high structures.

(2) Further improvement of facility operations and maintenance technologies
To ensure stable electricity supply to support the recovery of Japan’s economy after theearthquake, we will proactively pursue research development on technology related to thepreservation and management of light water reactors, essential to their ongoing operation,
as well as technology supporting the construction, operation and maintenance of thermaland hydro power generating facilities and transmission and distribution facilities.
Nuclear power plant maintenance In order to ensure the long-term operation of light water reactors acceptable tosociety, we will identify the characteristics of aging degradation resulting fromlong-term use of light water reactors and develop preservation and management
technology to address this problem.
 We will steadily identify the mechanisms behind irradiation embrittlement inpressure vessels, and will improve the method we developed to predict
embrittlement through observation of the micro-structure of highly irradiatedsurveillance test specimens.
 We will expand the applicable scope of the prediction code for pipe wall thinningduring the gas-liquid two-phase flow previously developed to include flow
accelerated corrosion.
 We will develop a method for predicting the deterioration of cable insulation in aradiation environment through well-controlled irradiation experiments in terms ofenvironmental conditions and cable insulating materials.
Construction, operation and maintenance of power generating facilities
 We will develop technologies to support the smooth construction, operation andpreservation of power generating facilities.
 We will establish a method for measuring and predicting the particulate inorganicand organic carbon components, in anticipation of stronger regulations forsecondary atmospheric pollution at thermal power plants.
 We will carry out studies to evaluate the risk of bird collisions to wind turbines-9-toward biodiversity conservation.
 We will clarify creep fracture behavior of a girth welded section of high chromium
steel pipes used for high-efficiency pulverized coal thermal power by conducting
an internal pressure creep experiment with a full-scale piping test specimen of thematerial.
 We will build a new system integrating models on weather forecast, food, flow anddeposition, and water quality predictions in order to establish a comprehensive
watershed-sedimentation management technology for hydropower dams.
Operation and maintenance of transmission and distribution facilities
 We will develop technologies for operation and preservation of transmission anddistribution facilities to ensure the stable supply of power with reduced costs.
 In the field of technology for disposing of large-scale power transformers
contaminated with trace PCBs, we will carry out verification tests for the practicalapplication of CRIEPI’s recommended circulative cleaning and energizing
cleaning technology.
 We will develop technology to strengthen the performance of asset management

support tools and methods of diagnosing deterioration in aged equipment such as
CV cables in order to support the preservation of transmission and distribution
facilities.
 We will identify the mechanisms involved in corrosion of aged steel towers bydeveloping fact-finding surveys and accelerated test methods.

(3) Development of a supply/demand infrastructure for next-generationelectric power
We actively develop next-generation thermal power generation technology facilitating theeffective use of low-grade resources and reduction of carbon dioxide emissions by raising
the efficiency of power generation. Moreover, we will develop technology fornext-generation grids enabling the smooth introduction of solar power and other sources ofrenewable energy into the power system, as well as technology that promotes the efficientuse of energy and energy conservation, such as next-generation heat pumps andhigh-performance power semiconductors.
Developing more advanced thermal power technology
 We will develop new power generation technology with the aim of expanding thetypes of fuel used in coal thermal power generation, reducing CO2 emissions andgenerating power more effectively.
 In our efforts to expand the types of fuel used, we will conduct experiments to- 10 -

assess the impact of pulverized coal gain diameter on the combustion
characteristics of bituminous coal with low pulverability.
 We will examine the use of low-grade resources by determining the basic
carbonizing characteristics, spontaneous ignitions of wood pellets and othermaterials, as well as lignite’s dehydration and basic upgrading characteristics.
 In highly efficient electric power generation, we will develop a method to assess
the adaptability of various coal types as fuel, using the test data from IGCC
(Integrated coal Gasification Combined Cycle) demonstration plant.
 We will develop basic O2-CO2 gasification technology for the highly efficient
IGCC system with CO2 capture, such as O2-CO2 gasification technology.
Establishing Next-generation Power Grid Technology
 We will develop basic technology for system operations, demand/supply controls
and communication control from the trunk transmission power system to thedemand side and will assess the feasibility of these technologies. This will enable
us to build a system for the stable supply of electricity using a Japanese model ofthe smart grid that can handle large volumes of renewable energy and is highly
efficient in utilizing energy.
 We will examine the behavior of power conditioning systems (PCS) in the event of
power system faults, as well as the impact on the stability of the trunk transmission
power system when large volumes of photovoltaics (PVs) are introduced.
 As well as developing security technology for next-generation communication
networks, we will clarify the effectiveness of demand-response technology, taking
into account the energy-saving effect.
Development of Electrification and Energy Saving Technology
 We will develop energy-saving technology to more efficiently use energy.
 Using low-GWP (global warming potential) refrigerants, we will develop
industrial heat pump s and heat pumps for room heating with a low
environmental impact.
 With regard to high-performance power semiconductor devices, we develop
crystal growth technologies with a higher growth rate and low defect density, andwill fabricate multilayer wafers of 13kV-class transistors that can be used in ahigh-voltage power system.
 In the development of high-performance secondary batteries, we will clarify thedegradation mechanisms of batteries through non-destructive evaluation and post
analysis.
 We will evaluate the energy-saving effect by reducing the required ventilation
amount in electric kitchens.

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 We will develop analytical tools for use in setting up battery charging
infrastructure in order to popularize electric vehicles.
2．Basic Technology Subjects
Basic technology subjects are those that we address with the aim of refining the basic
technology skills that are the source of solutions to issues faced by the electric power industry
and strengthening our research skills in each specialty. These include field studies, theaccumulation of data and knowhow generated in experiments and observations, thedevelopment, formulation and refinement of analytical methods and algorithms, and basic
research to bring new ideas to life. Moreover, we accurately and promptly produce andpublicize the outcome of our efforts to address the issues arising after the earthquake andFukushima Daiichi nuclear accident.
We will designate 37 basic technology subjects in fiscal 2012 to capitalize on the strengths
and specialized skills of eight laboratories with specific research fields*.
*Socio-economic Research Center, System Engineering Research Laboratory, Nuclear Technology Research Laboratory,
Civil Engineering Research Laboratory, Environmental Science Research Laboratory, Electric Power Engineering ResearchLaboratory, Energy Engineering Research Laboratory and Materials Science Research Laboratory.

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II. Research Promotion
1. Steady Promotion of Research related to the Disaster Recovery
・We are steadily carrying out our research related to the disaster recovery, which has been our
main priority since fiscal 2011, in collaboration with all of our research laboratories, andare shifting from short-term issues to medium- and long-term issues now that thereconstruction and recovery is underway. We aim to produce highly effective results in atimely manner as a result of these endeavors so that our research can be applied in real-lifesituations. In our nuclear power research, we will reinforce our research initiatives designed
to improve the safety of light water reactors and support their preservation, and willdevelop a new system to promote this research.
・We will conduct research to resolve issues related to the Fukushima Daiichi nuclear accident
in close affiliation with the government and electric power industry by, for example,
participating in committees on the government’s and Tokyo Electric Power Corporation’s
medium- and long-term measures.
2. Transition to Research Structure Generating High-value Results Despite Budget
Restrictions
・On the assumption that budget constraints will continue as a result of the electric powerindustry’s harsh operating environment, we will continue to produce high-value research
results by scrupulously verifying the priority of research subjects and their costeffectiveness. Specifically, we will reduce the number of experiments, compensate forfewer experiments by enhancing the sophistication of our simulation technology andexpanding the application range, and carrying out more of our research internally. With
these efforts to maximize our researchers’ knowledge and experience, we will shift to a
resilient research system adapted to reduced research funding.
・We will continue using PDCA for our research subjects and make management decisions
promptly and accurately on whether to accelerate or reduce efforts in research areas orwithdraw completely. These efforts are intended to ensure that research resources, such asadditional resource inputs, are allocated expeditiously, and that results are steadily
generated and utilized. We will adopt external evaluations and employ particularly rigorous
progress management for priority subjects with limited terms, which require rapid andhigh-quality results.
3. Maintaining and Enhancing Research Capacity and Problem-Solving Skills
・The constant refinement of our research capacity in any environment is essential in- 13 -

enhancing our value, so we will develop the research foundation that will serve as thesource of impressive research skills on into the future. To this end, we are moving ahead
with the construction of research bases in Yokosuka and Abiko.
・We set up large-scale research facilities to support the electric power industry’s technologicalinfrastructure and sustain and strengthen our basic research capacity. In fiscal 2012, we will
establish a test facility to assess deterioration in aged CV cables, a heat pump development
testing facility, and a testing facility for the advanced fuel incineration for next-generation
thermal power plants. In addition, we will introduce a testing facility for the cooling limitsof light-water reactor fuel and a tsunami physical simulator for use in assessing the safetyof electric power equipment in the face of a tsunami.
・When allocating research resources, we will give priority to the issues facing the electric
power industry that need to be resolved and issues that will sustain and strengthen our basic
research capacity. In addition, we will allocate resources taking into account the diversity of
our research fields to refine our research capacity as we expand in the future.

・With the aim of expanding into new research areas in light of external conditions, we willenvision the future of the electric power industry and society by holding cross-cutting
workshops at CRIEPI. We will also continue to seek out research subjects that should be
addressed preemptively.
・We will further develop and expand our “knowledge” network, and also proactively pursue
affiliations and exchanges with both Japanese and overseas universities and research
institutes with impressive expertise (such as the US-based Electric Power ResearchInstitute, Électricité de France, Japan Atomic Energy Agency, and the Marine Ecology
Research Institute) in order to produce effective and advanced research results withmutually complementary scientific knowledge. In addition, we will utilize the networks wehave built up in strategically presenting our results in order to enhance CRIEPI’s value.
4. Reinforce Initiatives to Accurately Identify Needs of Electric Power Industry andSociety・In order to accurately identify the needs of the electric power industry and society, whichchanged significantly after the earthquake, we will pursue information sharing and dialogue
with external committees and liaison groups. We will reflect these results in our researchplans to maximize our outcomes.
・We will strengthen our affiliation with the electric power industry through joint research in
the industry’s field and systematic personal interaction tailored to the distinct features ofour partner and their technical field by dispatching researchers, accepting visiting- 14 -

researchers and holding training. As a result, we will also enhance our field applicability.
・We will quantitatively assess the cost-effectiveness of our research projects and use theseresults to ensure that we are accountable for our research activities both internally andexternally. When carrying out these assessments, we will not only consider ways to ensurethat the evaluation method is highly objective.
5. Management and Application of Intellectual Property
・We will strategically secure intellectual property related to our research results. Specifically,
we will reinforce our survey of precedent R&D results in other organizations utilizing
patent information and academic literature, and produce intellectual assets and secure andutilize the rights to these assets. Moreover, we will ensure thorough risk management ofintellectual assets and exports from a security perspective.
・With the aim of encouraging the broad use of our intellectual assets, we will digitize ourexisting research reports and expand our download services for disclosed materials. In
addition, we will strive to more efficiently prepare research reports so that they can beissued more quickly, and will also make our intellectual property more visible by annually
publishing The Intellectual Property Report.
・We will not only promote the use of the intellectual property we have built up to promptly
resolve issues in the electric power industry, but will also strive to spread technology tobusinesspersons working on the front lines of society through technology exchange courses
and technology lectures. Moreover, we will introduce patents and software and promote
their use.
・We will capitalize on our strengths as an academic research organization to participate innational and academic committees, thus contributing to the establishment of specifications,standards and technical standards for the energy and environment.
6. Promoting Funded Research・Applying CRIEPI’s fundamental research skills, we will proactively engage in research thatmeets the needs of the electric power industry, and will also receive government funding
for research that will help to clarify issues related to the electric power industry and lead toappropriate technology policies.
・As an independent testing center, we will also facilitate the projects of the PD Center,
which gives certification exams for experts of ultrasonic inspection working with nuclear
power plant components, as well as the projects of the High Power Testing Laboratory,
which performs short-circuit tests on electric power equipment.

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7. Steady Implementation of Fundamental Activities
・We will steadily carry out the following basic activities to promote a wide range of research
activities and effectively disseminate information on research activities and results.
a. Collection of Literature, Materials and Statistics
We will secure and maintain a wide range of literature, materials and statistics andcollect high-quality information by, for example, collecting information utilizing ourposition as an academic research institute and augmenting the collections at CRIEPI’svarious libraries. The compiled information will be used in research activities, and also
given back to society at large through publications such as research reports.
b. Establishment and Use of Mainframe
We will upgrade our mainframe installed in the Abiko Area to cope with the increasing
sophistication and complexity of our research. We will use this mainframe for general
purposes in research activities, and it will help in generating superior research results.
Moreover, we will actively grant licenses for software, such as the mathematicalsimulation program that we developed, for wide use by electric power companies andmanufacturers.
c. Issuance of Publications
We will gather research reports and public relations media in line with the progress
made with our research issues and disclose them to society at large via our website.

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Administration
1. Thorough Cost-Cutting Responding to Changes in Business Environment
・In pursuing our research activities, we will review our research subjects and change
procedures in light of future income conditions, while ensuring safety and the quality of ouroperations. In particular, we will make strict decisions based on actual conditions onwhether or not to carry out projects with high budgets or that are expected to generate costs
posted in future fiscal years.
・We will ensure that we are paying competitive prices in commissions and procurement inorder to further cut costs in overall operations, and will further optimize sub-contracted
operations.
・ While effectively utilizing CRIEPI’s assets, we will streamline our fixed assets byproactively retiring and selling assets that we do not expect to use going forward, and willappropriately administer and manage assets by saving on maintenance costs.
・We will make further reductions in executive compensation in line with revenue trends andrevise the annual salaries of managers on the premise of reductions at a set percentage
according to relative evaluations. In addition, we will continue to take steps to reduce
personnel costs on an ongoing basis by, for example, reviewing long-term policies,
including social welfare costs.
2. Ensuring Sound and Rigorous Administration
・After transferring to the status of a non-profit general foundation, we will continue tostrengthen governance under the new articles of incorporation and ensure sound andrigorous administration. Specifically, we will implement our compliance and theorganization’s risk management to enhance the effectiveness of our internal control system
by revising regulations and systems as necessary to comply with legislation and social
standards.
・We will complete our Plan on Expenditures for Public Benefit within the intended period.
We will also address tax changes resulting from the shift to our new status.
3. Establishing Research Bases to Strengthen Research Foundation
・We are establishing a research base in the Yokosuka Area that we hope will become aresearch base for the energy industry, and continue to build the infrastructure such as roads,
power sources and communications needed for a new and large-scale research facility. In
addition, we will move ahead with our concrete plans for the new research facility and theconstruction of a new joint laboratory and research building to prepare for the shift from- 17 -

the Komae Area.
・We will prepare a specific facility development plan to realize our future visions for our
research base in Abiko Area, which is intended as a research base for nature and theenvironment, while adapting to changes in the operating environment.
・We will devise a plan for the shift of the research facilities in the Komae Area to the
Yokosuka region, and will move ahead with preliminary preparations such as soil
contamination surveys in anticipation of the systematic sale of the land after the facility
transfer.
・Under this policy to focus our research divisions in these two research bases, we will review
transfers and reorganization with the aim of streamlining operations in the administrativeand management divisions to more effectively and efficiently administer CRIEPI.
4. Enhancing CRIEPI’s Recognition and Acclaim in Society through Strategic
Information Transmission
・We will strategically disseminate our research results to the public as an academic research
institute. Specifically, we will issue information appropriately and in a timely manner byproactively issuing press releases and responding to requests for information from media
outlets, holding briefings, introducing the forefront of our research, and publishing regular
reports such as “CREIPI News”, “TOPICS” and “Review” to introduce our research
activities.
・We will strive to hear the requests and views of outside stakeholders by exchanging views
with influential individuals and holding other public hearings. We will reflect these viewsin our business operations as appropriate.
5. Hiring, Educating and Utilizing Personnel as the Key to Organization’s Sustainable
Development
・We will establish human resource measures that will enable all staff to perform their roles totheir maximum ability, with the ultimate goal being to scrupulously support each staff
member. In particular, our human resource system will bolster CRIEPI’s vitality withmeasures to raise motivation with a focus on employee assignments so that leaders in thenext generation are trained.
・We will consider setting employment contract periods flexibly and a new framework withmore expansive possibilities in terms of compensation and benefits as well as
responsibilities and authority. This will enable CRIEPI to hire research staff on an ad-hoc
basis and thus meet the increasingly diverse research development going forward.

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・ We will also consider introducing different employment patterns, such as part-time
positions, as ancillary positions in order to diversify the ways in which office andmanagement personnel are hired.

- 19 -

Workforce
The current workforce numbers approximately 840, and CRIEPI’s basic policy aims to reachan equilibrium point of 800 by the end of FY2015.
Accordingly, we will keep the number of research staff unchanged in FY2012, but will
gradually decrease the number of office staff to streamline office work and utilize humanresource, and will also be selective in accepting other staff, such as special visiting
researchers and temporary transferred researchers.
The workforce in fiscal 2012 is as follows.

(Expected as April 1, 2012)
Item

Number (people)

Percentage
distribution (%)

1.

Research

737

88.2

※Including 40
visiting researchers〔Breakdown〕

2.

〔100.0〕(1)Electricity

116

15.7

(2)

Civil Engineering and Construction

90

12.2

(3)

Mechanical

97

13.2

(4)

Chemistry

73

9.9

(5)

Biology

61

8.3

(6)

Nuclear Engineering

47

6.4

(7)

Environmental Science

43

5.8

(8)

Information and Communication

40

5.4

(9)

Socio-economics

49

6.7

(10)

Research Support and Management

121

16.4

99

11.8

836

100

Office work
Total

- 20 -

Appendix Table: Operations in Clause 1, Article 4 of the Articles of Incorporation and thecorresponding research activities in fiscal 2012 are as follows.
Operations in Clause 1, Article 4 of the Articles ofIncorporation*(1) Research, studies and experiments on theelectricity, civil engineering, environment,
thermal and nuclear power, new energy andelectricity applications related to energy
transmission and distribution(2) Research and studies on economics andlegislation related to electricity

Corresponding plan
Research activity I. Overall researchplan
Research activity II. Overall
research promotion

Research activity I. Overall researchplan
Research activity II. Overall
research promotion(3) Dissemination and utilization of output such as Research activity II. Researchpreparation of specifications and standards promotion 5, 7
related to power technology(4) Other items needed to achieve objectives of a No corresponding plans in fiscal
general foundation
2012*Note: Before the transition to the status of a non-profit general foundation, this referredto the plan for changes to the articles of incorporation.

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Statement of BudgetBudget Compilation
The budget for CRIEPI operations was increased to 33.3 billion yen in fiscal 2012, up 1.03
billion yen over the previous fiscal year. The main points are as follows.
1. Operating Activities(1) Revenue from ordinary benefits decreased 270 million yen over the previous fiscal year
to 27 billion yen.
(2) Business revenue stood at 1.3 billion yen, down 1.09 billion yen over the previous fiscal
year’s budget.
・Revenue from funded research is 900 million yen, down 900 million yen over theprevious fiscal year’s budget, as a result of an expected decrease in nationally funded
research.
・Other business revenue, including revenue from joint research and revenue fromsubsidies, decreased 190 million yen over the previous fiscal year’s budget to 400
million yen.
(3) Other revenue decreased 10 million yen over the previous fiscal year’s budget, to 100
million yen.
(4) Business activity expenditures were down 1.65 billion yen over the previous fiscal year’s
budget to 23.7 billion yen.
・Business expenditures were down 1.63 billion yen over the previous fiscal year’s
budget to 21.96 billion yen as a result of cuts in costs as CRIEPI focused on carefully
selected research topics.
・Management expenditures amounted to 1.74 billion yen, down 20 million yen
compared to the previous fiscal year’s budget, as cost cutting offset increases such as thereinforcement of an internal control system.

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2. Investing Activities(1) Revenue from investing activities was up 3.34 billion yen over the previous fiscal year to
4.15 billion yen, including 4.1 billion yen in the liquidation of special assets reserved for theacquisition of a testing facility for the advanced fuel incineration for next-generation thermal
power plants, an increase of 3.4 billion yen over the previous fiscal year’s budget.
(2) Expenditures on investing activities increased 2.68 billion yen to 9.6 billion yen. This
included・1.4 billion yen in expenditures to acquire special assets for the establishment of a
research base in the Yokosuka Area, a 1.4 billion yen decrease over the previous
fiscal year’s budget.
・Expenditures to acquire fixed assets increased by 4.08 billion yen over the previous
fiscal year, to 8.2 billion yen. This included the expansion and updating oflarge-scale mainframe computers, testing facilities for heat pump development andelectric short-circuit testing facilities.
3. Financing Activities
There were no revenues or expenditures for financing activities.

- 24 -

BudgetThe fiscal 2012 budget, compiled based on the above, is as follows.
Fiscal 2012 Budget for Revenues and Expenditures
From April 1, 2012 through March 31, 2013
(Unit: Million yen)

I. Revenue and expenditure in business activity
1. Business activity income(1)Base property operation income(2)Benefit income
Current benefit income(3)Business income
Funded research business income
Other business income(4)Other income
Business activity income total
2.Business activity expenditure(1)Business expenditure
Personnel expenditure
Payment of expense(2)Management charge expenditure
Personnel expenditure
Payment of expense
Business activity expenditure total
Difference between revenue andexpenditure in business activity
II. Revenue and expenditure in investing activity
1. Investing activity income(1) Special asset virement income
Special asset virement income toacquire research facilities(2)Long-term advance payment diversion expenditure
Investment activity income total
2. Investing activity expenditure(1)Special asset acquiring expenditureSpecial asset acquiring expenditure
to acquire research facilities(2)Fixed asset acquiring expenditure
Investment activity total
Difference between revenue andExpenditure in investing activity
III. Revenue and expenditure in financial activity
1. Financial activity income
2. Financial activity expenditure
Difference between revenue andExpenditure in financial activity
Difference between revenue andExpenditure in the current period
Difference between revenue andExpenditure in the previous balance brought
forwardDifference between revenue andExpenditure of balance carried forward

Note:

BudgetRevised budget
to previous year

Up and down(△down)---27,000
1,300
(900)
(400)
100
28,40027,2702,390(1,800)(590)
110
29,77021,960(9,920)(12,040)
1,740
(980)
(760)
23,70023,590(10,020)(13,570)
1,760
(980)
(780)
25,350△270△1,090(△900 )(△190)△10△1,370

4,700

4,420

△1,630(△100)(△1,530)△20( - )(△20 )△1,650

4,100

700

3,400

50

4,150

110
810

3,340

1,400
8,200
9,600

2,800
4,120
6,920

△1,4004,080
2,680△5,450△6,110

660

△750

940

750

△1,690

-

-

-

-

1,690

1. The borrowing limit was 1,000 million yen.
2. Liabilities will amount to 3,700 million yen in fiscal 2013 and 500 million yen in fiscal 2014.

- 25 -

280

△60

-

△940

-

Remarks