FY2014
Reports on
Research Activities
Settlement of Accounts
From April 1, 2014
To March 31, 2015

June 2015

Central Research Institute of Electric Power Industry

Contents
Page
Reports on Research Activities
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8

Overview of Research ReportI.

Research Activities

II.

Administration

III.

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

12

IV.

Meetings Held ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

13

Settlement of Accounts
Outline of Settlement of Accounts ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

19

I.

Financial Statements

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

21

II.

Supplementary Statement ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

37

Audit Report by Third-Party Auditor ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

39

Audit Report
Audit Report ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

41

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

43

Overview of Research Results

Reports on Research Activities

Overview of Research Report
In fiscal 2014, the electric power industry sought and began devising operating strategies for a
new era, in light of progress with electricity system reform. At the same time, nuclear power plants
did not resume operation, and the operating environment became increasingly harsh.
Although provisional reductions in benefit income, which accounts for most of our businessrevenue, remained in place, we streamlined operations and cut costs further so that we could focus
our resources on projects with the greatest priority based on the needs of the electric utility industry.
We gave the highest priority to the pursuit of projects that would enable the electric utility indudustry
to fulfill the role expected of CRIEPI.
Accordingly, we produced highly effective results from research into medium- and long-term
issues, as well as issues that are particularly urgent for the electric power industry, such as
responding to screening to determine nuclear power plants’ compliance with new regulatory
standards, paving the way for the resumption of operations at nuclear power plants; the operation andpreservation of thermal power plants, which are essential for the stable supply of electricity; andaddressing the technical and institutional aspects involved in expanding the introduction ofrenewable energy.
We also established the Nuclear Risk Research Center (NRRC) and Research Team for
Advanced Management of Power Supply and Demand as new frameworks enabling CRIEPI to
exercise its comprehensive strengths and adequately supply research results in a timely manner. In
addition, in order to fulfill our responsibilities as an industry research institute supporting the electric
power industry with our technical strengths and problem-solving abilities, we devised researchstrategies for each field that address changes caused by electricity system reforms, and alsosystematized our foundational technologies.
In terms of organizational operations, we made steady progress in consolidating research basesin the Yokosuka area and Abiko area. As part of this effort, we designed reorganization of theadministrative divisions to streamline and enhance the administration and management. Moreover,
we proactively took measures to build a resilient business operation structure, reaching our goal for
reductions in staff one year early.
As a result, we fulfilled our mission as a joint research organization for the electric powerindustry, made progress in establishing a business foundation for the future and devised researchstrategies, and strengthened our preparations for reforms.

―1―

I. Research Activities
1. Research Results
We pursued research as laid out in the research plans established based on the Portfolio of
Research Subjects, which provided an overview of the entire electric power business and clarified
the issues that CRIEPI should address. We produced and provided diverse research results that
contribute to the electric power industry.
Specifically, we addressed assessments of the safety of nuclear power plants in the face of
natural external events such as earthquakes, tsunami and tornadoes, as well as the screening todetermine the compliance of nuclear power plants with new regulatory standards, which are crucial
issues for the electric power industry, and also continued to exercise our comprehensive strengths
and give the highest priority to natural disaster measures for electric power facilities. We also
developed facility diagnosis and life assessment technology contributing to the rational maintenanceand replacement of electric power generation facilities and transmission and distribution facilities,
and made steady progress in developing technology enabling companies to adapt changes in theelectricity network, such as the broader introduction of renewable energy and activation of thedemand side.
Below, we describe the representative research results newly achieved in fiscal 2014 for eachresearch pillar, which indicate the direction of our research in the medium term.
(1) Establishment of Optimal Risk Management
With the aim of mitigating and managing risks involved in the stable supply of electricity andimproving the safety of nuclear power generation, we assessed the impact of natural phenomena andsocio-economic changes on the electric power industry, and addressed issues so that we could
propose countermeasures. The section below describes the primary outcomes.
Enhancement of tsunami fragility assessment on nuclear power plant facilities

We continued to establish and sophisticate technology to assess the fragility of nuclear power
facilities in the face of tsunami hydrodynamic force and collisions induced by tsunami debris basedon the results of large-scale hydraulic tests utilizing a tsunami and flood channel.
Evaluations of risks to health from low-dose radiation

We formulated a biological mechanism hypothesis that exposure to low-dose rate radiation would nothave a cumulative effect, and confirmed the feasibility of this hypothesis using a numerical model.
Development of a high-resolution long-term meteorological and climate database―2―

We calculated the occurrence of meteorological phenomena over the past 57 years and used this to
set up a database that could be utilized in evaluating weather damage to electric facilities and theevaluating the safety of nuclear power facilities.
Issues with electricity system reforms and response

We clarified the risks that electric power companies could face as a result of electricity system
reforms, and presented knowledge that would be useful in establishing a business environment inJapan.
(2) Improvement of Facility Operations and Maintenance Technologies
We carried out research and development raising efficiency and economic performance in theoperation and conservation of electricity facilities and electric transmission and distribution facilities
in order to technically support the stable supply of power, which in turn supports the lives ofJapanese citizens and economic activity. The section below describes the key results.
Development of a life assessment method for welded parts of high chromium steel pipe

We developed highly accurate evaluation methods for creep life for welded parts of high chromium
steel pipe, which are often used in ultra-super-critical thermal power plants.


Development of technology for preventing sulfide corrosion on boiler tubes in thermal
power plants

We developed a sulfide corrosion resistant coating that reduces corrosion on thermal boiler water
wall tubes in thermal power plants to 25% or less compared with an uncoated part and can be used at
low cost and in a short time.


Development of technology to evaluate impact of thermal power plants on air quality

We determined the extent of the impact of PM2.5 generation sources in Japan and overseas measured
in regions in Japan using the most up-to-date numerical analysis methods assessing PM2.5 bygeneration source.
Synthesis system of numerical analysis for current and sediments in rivers and reservoirs

We developed an integrated system for flood and sediment behavior projection to simultaneously
project and analyze stream regime and sediment behavior during floods from the river’s upper
reaches to the mouth of the river.
Proposal of abnormality diagnosis method for transformers―3―

We proposed decision criteria to be applied in emergency diagnosis, as well as diagnosis in routine
inspections, as a method of diagnosing abnormalitites in oil-immersed power transformer winding.
(3) Development of a Supply/Demand Infrastructure for Next-generation Electric PowerWe built up a next-generation technical foundation capable of greater efficiency in terms ofboth power supply and power use that would also ensure energy security. We also addressed issues
involved in energy conservation and a shift to low carbon. The main results are described below.
Assessment of the impact of the large-scale introduction of renewable energy

We systematically organized the basic impact that various conditions in the power system would
have on system stability when renewable energy is introduced on a large scale, and assessed theeconomic impact of countermeasures.


Development of methods to estimate photovoltaic power generation output using sensors in
distribution lines

We developed a method of estimating power demand and photovoltaic power generation output inreal time using periodic power flow information detected by a sensor installed in the distributionlines.
Development of manufacturing technique for high-quality SiC single-crystal films

We developed a high-quality SiC single-crystal film capable of reducing power losses in power
semiconductors used for power conversion, and verified this by manufacturing a single-crystal filmwith a practical-level bore.
Please refer to “Overview of Research Results” from page 43 for more details on research
results.

―4―

2. Promoting research and strengthening the research foundation(1) Clarify research strategies based on communication with power companies

Taking into account the fact that the impact of electricity system reforms differ by the sectors of
the electric industry, we clarified the role that CRIEPI should play in research and developmentin the electric power industry, as well as research strategies in the various corresponding
research fields.



We strengthened multi-layered communication with electric power companies, beginning withvarious research committees held by CRIEPI, gatherings for an exchange of opinions, andresearch exchange meetings. Through this means, we reflected frontline needs accurately and ina timely manner in the Portfolio of Research Subjects and research plans and their pursuit inaccordance with this Portfolio.

(2) Further strengthen research structure

We organized and systematized our foundational technology in an overhaul that would enable us
to respond to changes in the electric power industry and society and also strengthen ourcompetitiveness as a research institution.

We thoroughly screened every part of our research activities and improved the efficiency of ourresearch implementation so that we can continue to generate high-quality research results, evenas research funding continues to be constrained.



We carried out research evaluations by external experts in order to raise the quality of ourresearch results and fulfill our responsibility to provide external accountability, and reflected
these findings in our research activities. Moreover, we quantified the value of our research andendeavored to improve cost effectiveness by implementing research value assessments tocalculate the estimated economic value of the research outcomes.

(3) Enhancing research capacity and problem-solving skills
We established the Nuclear Risk Research Center (NRRC) as a base for research anddevelopment essential so that nuclear power companies can independently and sustainably
improve safety. The Center’s director is global authority on Probabilistic Risk Assessment(PRA). In this way, we have built a system in which electric power companies and industry
circles work together to carry out research and development and utilize the results. As a result,
we have started setting up and refining PRA using an exsisting plant, as well as initiatives toexpand these improvements in the use of PRA results among electric power companies.



We formed the Special Research Team for Next-Generation Electricity Supply/Demand―5―Management to strengthen the system for promoting research involving overall optimization ofenergy supply/demand and new value creation for electricity, taking into account the mutual
reliance and cohesiveness on the electricity distribution and demand side. We also accelerated
the development of technology to stabilize the power distribution system enabling moresophisticated supply/demand management and an expanded introduction of renewable energy.


In order to maintain and develop our research ability and problem-solving ability into the future,
we introduced and updated large-scale research facilities and basic research facilities essential toresolving issues for the electric power industry after a careful selection process, as described
below, while reducing costs.
 Facility to test cooling limits of simulant fuel in light water reactors: Simulation oftransient thermal flow in a nuclear reactor up until a severe accident, with the results
utilized in verifying the effectiveness of safety measures
 Addition of one-way vibration function to centrifugal table: Used in developing andexamining new aseismic design methods that can be used in assessing collapse of slopes
near nuclear power plants
 Basic equipment for battery performance test and material investigation: Used in researchassessing internal degradation, estimating life and evaluating materials for secondary
batteries expected to be introduced as a means of stabilizing electricity systems
 Updates to electricity system simulator: Updates to those electric generators simulating
actual electricity systems and constituent devices such as electric power cables and others
that have aged

We trained personnel with impressive expertise and knowledge of the frontlines ofelectric .power companies through long-term dispatch of researchers to research institutions inJapan and overseas and to electric power companies in order to maintain and develop
foundational research skills.



We maintained and expanded networks with research institutes in Japan and overseas, such as
the Electric Power Research Institute (EPRI), Electricite de France (EDF), Nuclear Damage
Compensation and Decomissioning Facilitation Corporation (NDF) and the Marine Ecology
Research Institute (MERI) in order to mutually complement scientific knowledge and contributeto the utilization of our results.

(4) Management and Utilization of Intellectual Property

As well as carefully selecting, maintaining and utilizing intellectual property that can be―6―expected to contribute to society through the electric power industry, we made research reports
widely available to the public through our download service. The number of research reports isshown in Table 1 on page 15, the number of papers reported is shown in Table 2, the number ofapplications and registrations of patent right, and the number of internally registered softwareare shown in Table 3 on page 16 and the number of licensed patents and licensed software
applications are shown in Table 4.


Through our participation in national and academic committees, we have contributed to theestablishment of various standards and criteria related to energy and the environment, as well as
technical guidelines. Our primary contributions to formulation of major codes, standards, andtechnical guidelines are shown in Table 5 on page 17.

(5) Promotion of Funded Research

We proactively carried out funded research to meet the requests of the electric power industry,and promptly provided results that helped to solve issues on the frontlines. As requests fromelectric power companies have increased since the Great East Japan Earthquake, funding andmanpower has been squeezed, so we have used our ingenuity in determining the content of ourresearch and the process, and endeavored to carry out effective research.

In our research funded by the national government, we carefully selected and implemented
studies on research topics that are consistent with our research strategy in the various fields andthat help to solve issues in the electric power industry or issues that lead to improvements andrefinements in our research capacity. The main funded research projects commissioned by thenational government are shown in Table 6 on page 18.



We continued to carry out operations at the PD Center, which gives certification exams forexperts on ultrasonic inspection working with nuclear power plant equipment, as well as
operations at the High Power Testing Laboratory, which performs short-circuit tests on electric
power equipment.

―7―II. Administration
1. Curbing overall operating expenditures

We reviewed all operations to offset higher material costs and the significant expansion in assets
for which fixed asset taxes must be paid as a result of our shift to the status of a generalincorporated foundation. We also suspended or postponed and streamlined operations based onpriorities in order to curb operating expenditures across the board.

With our commissions and procurement, we not only used specified competitive biddings to
select contractors and revised specifications, but also canceled projects or moved them in-housebased on a review of the need for each operation in order to cut costs on an ongoing basis.



We reexamined the likelihood that we would use facilities in the future and continued to retireand sell facilities that we do not use in order to reduce future obligations such as maintenancecosts and fixed asset taxes. We also clarified medium- and long-term plans for facility
maintenance in order to identify rational expenditure timing and cut costs for the maintenance offacilities that we will continue to own.



We continued with cuts to salaries at the same level as in fiscal 2013 in order to reduce overall
personnel expenses.

2. Steady establishment of research bases

We steadily moved ahead with efforts to consolidate research bases into two bases, one in the
Yokosuka area as a base for research on energy industry technology and one in the Komae area
as a research base for nature and the environment. This is intended to establish the research
environment essential in maintaining and improving our research capacity while also reducing
fixed management costs. This was funded with the income generated from the sale of some of
the land in the Komae area in fiscal 2013 and represented an effective replacement of assets.

In the Yokosuka area, we signed a contract for construction work with the aim of completing
construction work on the New Research Building to hold the research divisions moved from the
Komae area in fiscal 2016. We also moved ahead with construction blueprints andadministrative procedures for the Materials Analysis Building. The research divisions that will
use the completed laboratories began the move from the Komae area in advance.

In order to reorganize administrative and management divisions in April 2015, we drew up
measures to streamline operations and organizational and institutional designs that would make
operations more sophisticated, strengthen research support systems and lead to human resource
training and utilization, while also adjusting to fewer personnel. We also established a common―8―area in the Abiko facility using an existing building in order to adapt to the transfer of employees
following the reorganization.
In light of the impact that the establishment of these research bases will have on employees’
lives, such as an increase in the number of employees commuting long distances, we took
measures aimed at improving operational efficiency, such as allowing researchers to work at
home.

3. Encouraging personnel’s job performance and hiring diverse staff in line with researchdevelopment
Extensive support (personal support) of each individual employee is the most important part ofour human resource management, and we took measures to raise motivation and utilize humanresources.



We established employee and hiring plans with a focus on utilizing the newly introduced“special limited-term research positions” and hiring researchers with sophisticated expertise andexperience from among the diverse human resources in different fields and industries.



Even as we are reducing administrative and management personnel, we devised proposals toreassign personnel to positions in which they can optimize their abilities, depending on eachindividual’s suitability, in anticipation of the transfer and reorganization.

4. Effective dissemination of research results and research capacity to electric utility and publicWe held press conferences, issued press releases and ran feature articles in a timely manner inorder to effectively highlight CRIEPI’s original research capacity and significance to the electric
power industry and the public. In order to contribute to publicity activities based on social
conditions and needs of electric power companies, we carried out public hearings targeting
electricity business companies and external experts and provided them with ongoing
information.



In May 2014, we held the Research Results Presentation 2014 and introduced research activities
in a multi-faceted manner related to thermal power generation and environmental issues on thetheme of “living with limited fuel resources and the environment.” In addition, we publicized
our research results in an easy-to-understand manner through publications such as CRIEPITOPICS.

5. Sound and rigorous pursuit of business operations


We continued our efforts to strengthen governance, steadily implemented risk management, andestablished and improved compliance awareness. Moreover, we endeavored to run autonomous―9―operations in a sound and rigorous manner, such as the appropriate and safe management of
security exports.


We continued to strengthen technical measures and educate executive officers to enhance
information security.



We augmented our business continuity plan (BCP) to prepare for large-scale natural disasters bystrengthening our backup system for backbone operations.



We completed our Plan on Expenditures for Public Benefit within the intended period in fiscal
2014 (the Cabinet Office will confirm completion around October 2015).



Please refer to the next page regarding our system for ensuring that directors comply with laws
and articles of incorporation and our system for ensuring appropriate operations.

―10―Basic Principles on Internal Controls
CRIEPI has established the following basic principles for its internal control system in order to ensure that its operations aremanaged appropriately and efficiently.
(1) Management system for administration
 The Board of Directors will hold meetings regularly and will also hold special meetings as necessary, and will discuss andmake decisions on important issues related to the performance of operations in accordance with laws and articles ofincorporation as well as decisions by the Board of Councilors. In addition, Vice Presidents’ job performance will be supervised.
 A committee concerned with management and research strategies and consisting of Vice Presidents and other the executives
carrying out operations (below, “Management Committee”) will be held regularly and important issues involved in conducting
operations will be discussed with a flexible and multidisciplinary approach.
 The operations that executives are in charge of performing will be clarified and business will be conducted in an appropriate
and prompt manner.
 Responsibilities and authority in exercising professional duties for Vice Presidents will be clarified in internal regulations, andefforts made to ensure that Vice President and employees perform their jobs appropriately and efficiently.
 Minutes for important committees such as the Board of Councilors, Board of Directors and Management Committee and otherinformation related to Vice Presidents’ execution of professional duties will be appropriately prepared, saved and managed inaccordance with the articles of incorporation and internal regulations.
 An Internal Audit Division will be set up under the jurisdiction of the President and the job performance of each division will
be regularly monitored in order to ensure that operations are conducted appropriately and efficiently.
(2) System for risk management
 A risk management system and internal regulations will be established.
 Risks related to business activities in carrying out professional duties will essentially be managed with a self- governing
approach, based on laws and internal regulations.
 General risk management will be carried out by the Internal Audit Division in a centralized manner, with audits to ensure thatimportant risks are appropriately managed without omission; the results will be reported to the President and Management
Committee.
 Important risks that could potentially have a substantial effect on management will be discussed in the Management Committee
and the necessary countermeasures will be discussed as required.
 In order to prepare for emergency disasters, internal regulations on the support organization and information system will be
stipulated in internal regulations, and disaster prevention training will be carried out.
(3) Management system for compliance Action guidelines for compliance will be established and put into practice with the Vice Presidents taking the lead. In addition,
employees will receive ongoing training on the prevention of improprieties via CRIEPI’s website for internal users.
 A whistleblowing hotline will be permanently established with both internal and external access so that employees can discuss
issues anonymously.
 The Internal Audit Division will audit employees’ performance of professional duties in terms of compliance and report theresults to the Management Committee. Executives will make the necessary improvements in light of the audit results.
(4) Audit system The General Auditor will audit Vice Presidents’ and other the executives’ performance of professional duties to ensure that they
conform to the law and are appropriate by attending important meetings such as the Board of Directors meetings and perusing
important documents. A full-time auditor will be appointed.
 The Internal Audit Division will provide staff to assist in the auditor’s work. During the periods when the General Auditor’s
support staff are working exclusively with the General Auditor, they will not receive instructions or guidance from executives,
and the General Auditor’s wishes will be respected as regards transfers and evaluations.
 When Vice Presidents and/or employees discover anything that could significantly harm CRIEPI or detect acts that violate
laws, articles of incorporation and other internal regulation, they should report directly to the President General Auditor and/or
the Internal Audit Division.
 The Vice Presidents and employees will report to the auditor regarding the status of the execution of professional duties whenrequested to do so.

―11―III. Workforce
CRIEPI aimed for a workforce of about 800 employees, and we maintained the current numberof research staff, but gradually decreased the number of office staff by streamlining office work. We
endeavored to curb the total workforce by being selective in accepting other staff, such as special
visiting researchers. Moreover, we were steadily taking steps to reduce the workforce by suspending
the employment of temporary contract employees, as well as considering rehiring measures based on
the need for operations when rehiring employees who are retiring at the mandatory retirement age.
As a result of these measures, we achieved total employee numbers of about 800, our target for theend of fiscal 2015, one year ahead of schedule (workforce at the end of the fiscal year numbered 835
in fiscal 2011, 825 in fiscal 2012 and 820 in fiscal 2013).
The workforce as of March 31, 2015 was as follows.

Item
1.

Numbers

Percentage distribution (%)

697*

87.6

Research*

Including 8 special limited-term
research positions and 17 visiting
researchers(100.0)(Breakdown according to field)

2.

(1)

Electrical Engineering

107

15.4

(2)

Civil Engineering and Architecture

100

14.3

(3)

Mechanical Engineering

90

12.9

(4)

Chemistry

67

9.6

(5)

Biology

53

7.6

(6)

Nuclear Engineering

54

7.7

(7)

Environmental Science

41

5.9

(8)

Information and Communication

34

4.9

(9)

Socio-economics

44

6.3

(10) Research Support and Management

107

15.4

Office work

99

12.4

796

100

Total

―12―

IV. Meetings Held
1. Board of Councilors
Date held
May 27, 2014
(No.9)

June 13, 2014
(No.10)

September 4, 2014
(No.11)
November 20, 2014
(No.12)

March 20, 2015
(No.13)

Agenda1.

Selection of council members

1.

Approval of report on research activities in fiscal 2013

2.

Approval of report on settlement of accounts in fiscal 2013

3.

Fiscal 2013 Report on Implementation of the Public Interest Expenditure Plan

1.

Selection of council members and board members

1.

Selection of council members

1.

Decision on decrease in ongoing donations in fiscal 2015

2.

Approval of Research Plan in fiscal 2015

3.

Approval of Statement of Budget in fiscal 2015

2. Board of Directors
Date held
April 30, 2014

Agenda1.

Selection of council members

1.

Fiscal 2013 report on research activities

2.

Fiscal 2013 report on settelemt of accounts

May 29, 2014

3.

Fiscal 2013 Report on Implementation of the Public Interest Expenditure Plan

(No.11)

4.

Report on performance of job functions by President, Executive Vice President, and Managing(No.10)

Directors

June 23, 2014
(No.12)
August 4, 2014
(No.13)October 29, 2014
(No.14)

5.

Decision to convene regular Board of Councilors

1.

Dismissal of important employees

1.

Selection of council members and board members

1.

Selection of council members

―13―

1.

Decrease in ongoing donations in fiscal 2015

2.

Fiscal 2015 research plans

March 12, 2015

3.

Fiscal 2015 statement of budge(No.15)4.

Report on performance of job functions by President, Executive Vice President, and Managing
Directors

5.

Decision to convene regular Board of Councilors―14―

Table 1: Number of Research Reports
Research reports, etc.

Funded research reports

Total

Socioeconomics

23

1

24

Environment

27

20

47

Customer energy services

18

10

28

Power distribution

56

42

98

Nuclear power generation

74

41

115

Fossil fuel power generation

21

30

51

New energy

13

12

25

Information & communication

18

5

23

Construction and maintenance ofelectric power facilities

14

19

33

Advanced basic technologies

6

3

9

Total

270

183

453

(Number in fiscal year 2012)

270

166

436

Table 2: Number of Papers Reported
Papers (Peer reviewed papers included above)
Socioeconomics

117

(23)

Environment

129

(31)

Customer services

94

(11)

Power distribution

232

(49)

Nuclear power generation

365

(112)

Fossil fuel power generation

106

(33)

Renewable energy power generation

54

(8)

Information & communication

48

(11)

Construction and maintenance of electric power facilities

129

(30)

Advanced basic technologies

129

(41)

Others

9

(1)

Total

1,412

(350)

(Number in fiscal year 2012)

1,409

(360)

―15―

Table 3: Number of Applications and Registrations of Patent Right, and Internally Registered
SoftwarePatent right
Software Registration
Application

Registration

Socioeconomics

1

0

2

Environment

7

19

9

Customer services

2

8

6

Power distribution

15

21

29

Nuclear power generation

13

12

8

Fossil fuel power generation

18

22

7

Renewable energy power
generation

1

4

4

Information & communication

2

3

4

Construction and maintenance ofelectric power facilities

3

5

8

Advanced basic technologies

21

21

1

Others

1

0

0

Total

84

115

78

(Number in fiscal year 2012)

84

146

74

*Number of patents held as of end-fiscal 2014: 811

Table 4: Number of Licensed Patents and Licensed Software Applications

Number of licensed patents
Number of licensed software applications

―16―

Total

(Number in fiscal year 2013)

52

19

440

312

Table 5: Contribution to Formulation of Major Codes, Standards, and Technical
Guidelines
Field

Code, Standard, Technical Guideline, etc.

Organizations andGroups Concerned

Nuclearpower

JSME S FA1-2014
Standards for Used Fuel Storage Facilities, Structural Standards for Metal Casks

Nuclearpower

JSM-NRE-009
Guidelines for Setting Designed Tornado Wind Speed and Flying Object Speed in Tornado
Impact Assessments for Light Water Nuclear Reactors

Japan Society ofMaintenology

Thermalpower

JEAC3705-2014
Regulations for Internal Combustion for Electric Power Generation

Japan Electric
AssociationPower
distribution

JEAC9701-2012
Regulations for System Interconnections (2014 Supplement)

Japan Electric
AssociationPower
distribution

JEAC5006-2014
Regulations for Batteries for Power Storage

Japan Electric
AssociationPower
distribution

JEAG5002-2014
Guidelines for Fire Prevention Measures at Electric Power Substations

Japan Electric
AssociationPower
distribution

JEM1498
Standard and Active Isolated Operation Detection Method for Single-Phase Power
Conditioners for Use with Distributed Power Sources (frequency feedback method withstep injection)

Japan Electrical
Manufacturers'
AssociationPower
distribution

JIS C 2143-1:2015
Electrical insulating materials – Thermal endurance properties – Part 1: Ageing procedures
and evaluation of test results (revised in March 2015)
JIS C 2143-8:2015
Electrical insulation materials – Thermal endurance properties – Part 8: Instructions forcalculating thermal endurance characteristics using simplified procedures (established in
March 2015)

Institute of ElectricalEngineers of Japan,
Japanese Standards
AssociationPower
distribution

IEC61786-2:2014
Measurement of DC magnetic, AC magnetic and AC electric fields from 1 Hz to 100 kHz
with regard to exposure of human beings – Part 2: Basic standard for measurements

International
ElectrotechnicalCommission (IEC)―17―Japan Society of
Mechanical Engineers

Table 6: Main funded research commissioned by government
Source ofNamecommission

Field

Ministry of Economy, Trade and Industry
Survey of Geological Disposal of Technology (Development of Technology for Evaluation and Verification

Nuclearof Migration of Groundwater in Bedrock)power

Initiative for Safety Measure Improvement and Technical Basis Development for Nuclear Power Plants

Nuclear(Improving Analytical Methods for Thermal Hydraulics Phenomenon in Fuel Exposure Process)power

Initiative for Safety Measure Improvement and Technical Basis Development for Nuclear Power Plants

Nuclear(Establishment of Technical Foundation for Performance Evaluation of Filter Vents)

power

Project to Develop Technology Foundation to Advance Safety Measures for Nuclear Reactors for Power

Nuclear

Generation (risk assessment for nuclear power generators, establishment of foundation for research)

power

Survey on Countermeasures for Global Warming (Survey on International Trends in Global Warming[United Nations Framework Convention on Climate Change, UNFCCC])

Environment

Secretariat of the Nuclear Regulation Authority
Outsourcing Expenses for Fire Prevention Measures for Nuclear Power Facilities (Tests to assess impact of

Nuclearsea water and boric acid injections)

power

New Energy and Industrial Technology Development Organization
Technology development for SOFC commercialization promotion / Basic study on rapid evaluation method

Thermalof SOFC durability

power

Project on revolutionary coal gasification power generating plant with zero emissions; Basic research
project on revolutionary gasification technology; Research on basic technology to develop high efficiency
oxy-fuel IGCC
Project for Research and Development on Response to Output Fluctuations in Power Systems: Wind Power
Projections and More Sophisticated Controls / Simulation of Operation of Projection Technology System
Project to Verify Development of Distributed Energy Next-Generation Power Network / Development of
Shared Foundational Technology to Build Next-Generation Power Distribution System
SIP (Strategic Innovation Creation Program) / Next-Generation Power Electronics / Development ofBase-type Shared Foundational Technology related to SiC / Comprehensive Research and Development for
SiC Next-Generation Power Electronics

Thermalpower
Powerdistribution
Power
distribution
Power
distribution

National Institute of Advanced Industrial Science and Technology
Development of heating method for methane hydrate recovery using CO2 /water emulsion

Thermalpower

Japan Atomic Energy Agency
Development of Testing Equipment for Elementary Steps for Breakage and Melting of Fuel Rods andNuclearControl Rods

power

International Research Institute for Nuclear Decommissioning
Property Evaluation of Melting and Solidification of Debris
Research on Evaluation Technology for Waste Inventory
Consideration of Residual Water Vaporization for Zeolite

Nuclearpower
Nuclearpower
Nuclear
power

Note: The above independent administrative entity became a national research and development corporation on April 1, 2015.

―18―

Settlement of Accounts

Outline of Settlement of Accounts
Net property at the end of fiscal 2014 was 38,752 million yen, 2,360 million yen lower
than the end of the previous fiscal year.
1. Balance Sheet(1) Assets
The balance of assets at the end of the fiscal year was 55,866 million yen.
a. Current assets, including cash and deposits and accounts receivable, totaled 6,813 million
yen.
b. Fixed assets amounted to 49,052 million yen.
 Special assets whose use has been designated totaled 13,322 million yen, including
machine and equipment, tools and furniture, special assets for retirement lump sum grants
benefits package allowance, special assets for reserves for acquisition of researchfacilities, and special assets for purpose of establishing research bases.
Other fixed assets, including land, buildings, and machine and equipment, amounted to35,730 million yen.

(2) Liabilities
The balance of liabilities at the end of the fiscal year was 17,114 million yen.
a. Current liabilities, such as accrued liabilities, totaled 6,952 million yen.
b. Fixed liabilities, such as accrued retirement benefits for employees, were 10,162 million
yen.
(3) Net Assets
The balance of net assets at the end of the fiscal year was 38,752 million yen.
a. Designated net assets totaled 608 million yen.
b. General net assets amounted to 38,143 million yen.
2. Statement of Changes in General Net Assets(1) Changes in general net assets
General net assets decreased by 2,219 million yen in this fiscal period.
a. Current revenue amounted to 27,817 million yen.
 Current benefit recieved from electric utility companies amounted to 23,565 million yen.
 Operating revenue stood at 3,934 million yen.
Of this operating revenue, governmentally funded research operating revenue accounted
for 2,595 million yen.
Other operating revenue, including revenue from short-circuit tests and revenue from―19―

joint research, totaled 1,339 million yen.
 Other revenue, such as interest recieved, amounted to 120 million yen.
b. Current expenditure amounted to 29,998 million yen.
 Project costs related to research totaled 28,190 million yen.
Of these project costs, personnel expenditures such as salary and benefit and retirement
benefit expenditures amounted to 8,994 million yen.
Expenditures, including supplies expenses, expenses for commission and depreciation
allowance, amounted to 19,195 million yen.
 Administrative expenses related to headquarters operations were 1,808 million yen.
Of this, personnel expenditures such as board members’ salary, salary and benefit andretirement benefit expenditure totaled 1,037 million yen. Expenditures, such as supplies
expenses, totaled 770 million yen.
c. Non-recurring profit totaled 45 million yen, consisting of facility donated profit.
d. Non-recurring expenses totaled 83 million yen, consisting of losses on sale of fixed assets.
(2) Changes in designated net assets
Designated net assets decreased 140 million yen in this fiscal year.
a. Subsidies recieved, including revenue from the Ministry of the Economy, Trade andIndustry, was 35 million yen.
b. Facility donated profit totaled 43 million yen, including donations from the Japan Society
for the Promotion of Science.
c. Transfers to general net assets totaled 219 million yen due to depreciation allowance
related to the designated net assets included in fixed assets.
(3) Net assets final balance
Net assets in this fiscal period fell a total of 2,360 million yen, which is the sum offluctuations in general net assets and designated net assets. Accordingly, the balance of net
assets at the end of the fiscal year was 38,752 million yen.

―20―

I. Financial Statements
Balance Sheet
As of March 31, 2015
Account

Current
fiscal year

Previous
fiscal year

Increase/decrease

I. Assets section
1. Current assets
Cash and deposit

4,559,029,175

3,559,402,456

0

4,130,545

Account receivable

2,093,724,144

1,380,919,284

Suspense payable

124,531,714

32,556,830

91,974,884

Advance payment

36,075,915

382,652,938

6,813,360,948

5,359,662,053△ 346,577,023

199,044,490

237,679,539

90

1,310,928

1,506,426

2,059,385

Machine and equipment

450,562,924

604,502,982

Tools and furniture

52,191,042

48,138,006

Lump-sum depreciable assets

1,276,709

1,170,833

Intangible fixed asset
Special assets for retirement lump sum grants benefits
package allowance
Specific assets for reserves for acquisition of researchfacilities
Special assets for special project reserves

8,325,379

9,854,811

3,435,900,000

3,435,900,000

3,200,000,000

4,300,000,000

910,000,000

1,450,000,000

5,063,494,033

5,997,134,033

13,322,301,093

16,087,750,517

Securities

Total current assets

999,626,719△ 4,130,545

712,804,860

1,453,698,895

2. Fixed assets(1) Special assets
Buildings
Ancillary buildings
Structures

Specific assets for purpose of setting up bases
Total special assets(2) Other fixed assets△ 38,635,049△ 1,310,838△ 552,959△ 153,940,058
4,053,036
105,876△ 1,529,432

0△ 1,100,000,000△ 540,000,000△ 933,640,000△ 2,765,449,424

Land

8,553,518,118

8,553,518,118

0

Buildings

10,458,325,295

10,935,609,058

Ancillary buildings

3,337,553,859

3,337,535,463

Structure

1,301,936,553

1,270,091,960△ 477,283,763

Machine and equipment

7,920,162,857

8,228,664,436

Tools and furniture

1,781,777,579

1,893,042,321

Rolling stock and vehicles

35,055,189

50,266,593

Lump-sum depreciable assets

59,008,061

43,887,715

Intangible fixed asset

710,378,781

632,801,125

Construction in process account1,572,937,930

435,894,090

Total other fixed assets

35,730,654,222

35,381,310,879

349,343,343

Total fixed assets

49,052,955,315

51,469,061,396

Total assets

55,866,316,263

56,828,723,449△ 2,416,106,081

Accrued liability

6,603,858,643

5,002,766,734

Money entrusted

80,243,489

86,984,059

Advance receipt

23,925,345

176,181,067

II. Liability section

18,396

31,844,593△ 308,501,579△ 111,264,742△ 15,211,404
15,120,346
77,577,656

1,137,043,840△ 962,407,186

1. Current liability

Accrued bonus
Total current liability

244,000,000

253,000,000

6,952,027,477

5,518,931,860

1,601,091,909△ 6,740,570△ 152,255,722△ 9,000,000

1,433,095,617

2. Fixed liabilities
Allowance for retirement benefits for directors

527,000,000

440,000,000

87,000,000

9,635,000,000

9,757,000,000

Total fixed liabilities

10,162,000,000

10,197,000,000△ 122,000,000

Total liabilities

17,114,027,477

15,715,931,860

Accrued retirement benefits for employees―21―△ 35,000,000

1,398,095,617

Current
fiscal year

Account

Previous
fiscal year

Increase/decrease

III. Net assets section
1. Designated net assets
Special benefits

360,363,361

391,968,484

Cash subsidy

152,692,612

233,626,138

Cash contribution

95,324,897

123,630,812

608,380,870

749,225,434

Total designated net assets(Including appropriation to special assets)(

2. General net assets

608,380,870)(

38,143,907,916(Including appropriation to special assets)
Total net assets
Total of liability and net assets(

9,278,020,223
38,752,288,786
55,866,316,263―22―

749,225,434△ 31,605,123△ 80,933,526△ 28,305,915)(

40,363,566,155)(

11,902,625,083
41,112,791,589
56,828,723,449)(△ 140,844,564△ 140,844,564△ 2,219,658,239△ 2,624,604,860△ 2,360,502,803△ 962,407,186))

Statement of Changes in General Net Assets
From April 1, 2014 to March 31, 2015
Account

Current fiscal year

Previous fiscal year

Increase/decrease

I. General net assets increase/decrease section
1. Current increase/decrease section(1) Current revenue[1] Benefit received
Current benefit received

23,565,000,000[2] Operating revenue(

Funded research operating revenue

3,934,904,356

23,565,000,000)(

Other operating revenue

120,747,952)(

126,043,356Interest received

7,605,705

7,604,783

Facility usage fee received

78,020,293

80,880,097

Miscellaneous revenue

35,121,954

37,558,476

196,474,301

311,725,606

27,817,126,609

26,476,870,507[4] Transfer from designated net assets
Total current revenue(

1,460,802,811)

570,946,285

450,012,151

1,339,868,677(

0)

2,024,089,394

2,595,035,679[3] Other revenue

2,474,101,545

889,856,526)(△ 5,295,404)

922△ 2,859,804△ 2,436,522△ 115,251,305
1,340,256,102(2) Current expenditure[1] Project cost
Personnel expenditure(

8,994,556,998)(

9,302,895,324

Salary and benefit

7,001,720,008

6,811,565,964

Retirement benefit expenditure

1,030,040,436

1,534,742,318

962,796,554

956,587,042

Welfare expenditure
Expenditure(

19,195,543,266)(

17,254,719,198)(△ 308,338,326△ 504,701,882
6,209,512)(

1,940,824,068

1,840,610,215

1,771,746,908

68,863,307

Printed material expenses

345,422,554

320,817,102

24,605,452

Fuel, light, and water expenses

942,168,597

881,012,127

61,156,470

6,593,060,516

5,353,779,137

1,239,281,379

799,176,286

677,418,837

121,757,449

1,503,189,521

1,432,415,664

70,773,857

Rental rate

293,212,280

250,595,187

42,617,093

Tax and public charge

509,600,453

335,690,817

173,909,636

Travel and transport expenses

675,361,319

636,858,970

38,502,349

Communication and transportation expenses

75,685,649

91,915,907△ 16,230,258

Supplies expenses

Expenses for commission
Collaboration research contribution
Repair expenses

Other expenditure
Depreciation allowance
Subtotal of project cost

557,618,728

781,067,328

5,060,437,148

4,721,401,214

28,190,100,264

26,557,614,522)

190,154,044)△ 223,448,600
339,035,934

1,632,485,742[2] Administrative expenses
Personnel expenditure(

1,037,382,202)(

1,076,034,436

Board members’ salary

142,100,000

142,705,000

Salary and benefit

580,315,089

581,649,898

Retirement benefit expenditure

85,929,699

120,858,888

Welfare expenditure

142,037,414

138,100,650

Allowance for retirement benefits for directors
transfer

87,000,000

92,720,000

Expenditure(

770,637,284)(

793,224,716

Supplies expenses

22,093,545

14,580,195

Printed material expenses

31,288,987

39,274,949

Fuel, light, and water expenses

24,590,796

32,893,152

Expenses for commission

120,876,881

123,918,659

9,093,823

15,633,696

Rental rate

341,356,242

361,610,564

Tax and public charge

47,465,917

32,689,103

Travel and transport expenses

20,173,619

24,883,175

Repair expenses

―23―

)

(

△ 38,652,234)△ 605,000△ 1,334,809△ 34,929,189
3,936,764)(△ 5,720,000△ 22,587,432
7,513,350△ 7,985,962△ 8,302,356△ 3,041,778△ 6,539,873△ 20,254,322
14,776,814△ 4,709,556)

Account

Previous fiscal year

Increase/decrease

7,800,548

8,069,111

Other expenditure

100,774,824

100,225,129△ 268,563

Depreciation allowance

45,122,102

39,446,983

5,675,119

1,808,019,486

1,869,259,152

29,998,119,750

28,426,873,674△ 61,239,666

1,571,246,076△ 2,180,993,141△ 1,950,003,167△ 230,989,974

21,706,204

6,436,400

15,269,804

Gains on sale of facility and other270,169

6,553,046,014[3] Transfer from designated net assets

23,241,748

0△ 6,552,775,845

45,218,121

6,559,482,414△ 6,514,264,293

83,721,772

189,746,896△ 106,025,124

161,447

14,119147,328

83,883,219

189,761,015△ 105,877,796

Communication and transportation expenses

Subtotal of administrative expenses
Total current expenditure
Current ordinary increase/decrease
2. Non-recurring increase/decrease section

Current fiscal year

549,695(1) Non-recurring profit[1] Fixed asset donated profit
Facility donated profit[2] Gain from sale of fixed assets

Total non-recurring profit(2) Non-recurring expenses

23,241,748[1] Loss on sale of fixed assets
Loss on sale of tools and furniture[2] Losses on sale of fixed assets
Losses on sale of facilities and otherTotal non-recurring expenses△ 38,665,098

6,369,721,399

General net asset beginning balance△ 2,219,658,239
40,363,566,155

35,943,847,923

General net asset final balance

38,143,907,916

40,363,566,155△ 2,219,658,239

35,621,840

95,658,920△ 60,037,080

43,249,645

61,500,458

219,716,049

311,725,606△ 18,250,813△ 140,844,564
749,225,434△ 154,566,228

608,380,870

749,225,434

38,752,288,786

41,112,791,589

Current non-recurring increase/decrease
Current general net asset increase/decrease

4,419,718,232

II. Designated net asset increase/decrease section△ 6,408,386,497△ 6,639,376,471
4,419,718,232[1] Cash subsidy received
Subsidy received[2] Fixed asset donated profit
Facility donated profit[3] Transfer to general net assets
Current designated net assets increase/decrease
Designated net assets beginning balance
Designated net assets final balance
III. Net assets final balance―24―

903,791,662△ 92,009,557
13,721,664△ 154,566,228△ 140,844,564△ 2,360,502,803

Statement of Changes in General Net Assets (Breakdown)
From April 1, 2014 to March 31, 2015
Project total
Account

Corporate total

Ongoing projects (*)

Total

I. General net assets increase/decrease section
1. Current increase/decrease section(1) Current revenue[1] Benefit received
Current benefit received[2] Operating revenue

0(3,934,904,356

23,565,000,000)(

0Funded research operating revenue

2,595,035,679

0

Other operating revenue

1,339,868,677

0[3] Other revenue(

102,985,316

Interest received)(

17,762,636

23,565,000,000)(

3,934,904,356
2,595,035,679
1,339,868,677)(

120,747,952

0

7,605,705

7,605,705

Facility usage fee received

75,223,993

2,796,300

78,020,293

Miscellaneous revenue

27,761,323

7,360,631

35,121,954

196,474,301

0

196,474,301

4,234,363,973

23,582,762,636

27,817,126,609[4] Transfer from designated net assets
Total current revenue))(2) Current expenditure[1] Project cost
Personnel expenditure(

8,994,556,998

)

(

0

)

(

8,994,556,998

Salary and benefit

7,001,720,008

07,001,720,008

Retirement benefit expenditure

1,030,040,436

01,030,040,436

962,796,554

0

Welfare expenditure
Expenditure(

Supplies expenses

19,195,543,266

)

(

0

962,796,554)(

19,195,543,266

1,840,610,215

01,840,610,215

Printed material expenses

345,422,554

0

345,422,554

Fuel, light, and water expenses

942,168,597

0942,168,597

6,593,060,516

06,593,060,516

Expenses for commission
Collaboration research contribution

799,176,286

0

799,176,286

1,503,189,521

0

1,503,189,521

Rental rate

293,212,280

0293,212,280

Tax and public charge

509,600,453

0509,600,453

Travel and transport expenses

675,361,319

0

675,361,319

Communication and transportation expenses

75,685,649

075,685,649

Other expenditure

557,618,728

0557,618,728

Depreciation allowance

5,060,437,148

0

5,060,437,148

Subtotal of project cost

28,190,100,264

028,190,100,264

Repair expenses))[2] Administrative expenses
Personnel expenditure

(

0

)

(

1,037,382,202)(

1,037,382,202

Board members’ salary0142,100,000

142,100,000

Salary and benefit

0580,315,089

580,315,089

Retirement benefit expenditure

085,929,699

85,929,699

Welfare expenditure0

142,037,414

142,037,414

Allowance for retirement benefits for directors
transfer

087,000,000

87,000,000

Expenditure

(

0

)

(

770,637,284)(

770,637,284

Supplies expenses

0

22,093,545

22,093,545

Printed material expenses

031,288,987

31,288,987

Fuel, light, and water expenses

024,590,796

24,590,796

Expenses for commission

0

120,876,881

120,876,881

Repair expenses

09,093,823

9,093,823

Rental rate

0341,356,242

341,356,242

―25―

)

)

Project total
Account

Ongoing projects (*)

Corporate total

Total

Tax and public charge

047,465,917

47,465,917

Travel and transport expenses

0

20,173,619

20,173,619

Communication and transportation expenses

07,800,548

7,800,548

Other expenditure

0100,774,824

100,774,824

Depreciation allowance

045,122,102

45,122,102

Subtotal of administrative expenses
Total current expenditure
Current ordinary increase/decrease
2. Non-recurring increase/decrease section

0

1,808,019,486

1,808,019,486

28,190,100,264

1,808,019,486

29,998,119,750△ 23,955,736,291

21,774,743,150△ 2,180,993,141

21,706,204

0

21,706,204(1) Non-recurring profit[1] Fixed asset donated profit
Facility donated profit[2] Gain from sale of fixed assets
Gains on sale of facility and other[3] Transfer from designated net assets
Total non-recurring profit

270,1690

270,169

23,241,748

0

23,241,748

45,218,121

0

45,218,121

81,657,793

2,063,979

83,721,772(2) Non-recurring expenses[1] Loss on sale of fixed assets
Loss on sale of tools and furniture[2] Losses on sale of fixed assets
Losses on sale of facilities and otherTotal non-recurring expenses
Current non-recurring increase/decrease
Current general net asset increase/decrease
General net asset beginning balance

161,4470

161,447

81,819,240

2,063,979

83,883,219△ 36,601,119△ 2,063,979△ 38,665,098△ 23,992,337,410

21,772,679,171△ 2,219,658,239
40,363,566,155

General net asset final balance

38,143,907,916

II. Designated net asset increase/decrease section[1] Cash subsidy received
Subsidy received

35,621,840

035,621,840

Facility donated profit

43,249,645

0

43,249,645[3] Transfer to general net assets

219,716,049

0219,716,049△ 140,844,564

0△ 140,844,564[2] Fixed asset donated profit

Current designated net assets increase/decrease
Designated net assets beginning balance
Designated net assets final balance

749,225,434
608,380,870

III. Net assets final balance

38,752,288,786(*) Content of ongoing projects: Research, surveys, and tests on electric power technology and the economy and generalcoordination of the aforementioned.

―26―

Notes for Financial Statements
1. Important accounting policy
CRIEPI adopted the Public-Service Corporation Accounting Standard (April 11, 2008,
revised on October 16, 2009; Cabinet Office’s Public Interest Corporation Commission).
(1) Assessment standard and assessment method of valuable stock certificates
The cost method by the moving- average method has been applied.
(2) Depreciation method of fixed assets


For tangible fixed assets, building (excluding building attached structures) has been
managed by the equal installment method, small fixtures have been by the three-year
uniform extinguishment, and other tangible fixed assets including machine andequipment have been by the constant percentage method.

Intangible fixed asset has been managed by the equal installment method.



Lease assets from finance lease trade other than ownership transfer was calculated
for the lease period of expiration year and based on the equal installment methodwith zero residue prices.

(3) Allowance allocating standard
Allowance for doubtful debts: To prepare for doubtful debts including accountreceivable and loan receivable, uncollectible amount is individually estimated to account forallowance.
Allowance for employees: To prepare for paymenets of employees allowance, estimatedamount for this year is calculated to account for allowance.
Allowance for retirement benefits for directors: To prepare payment of vice presidents
and general auditors special service bonus, estimation at the end of period is account forallowance based on the private regulation to pay allowance for retirement benefits for
directors.
Allowance for retirement benefits for employees: To prepare for payment of retirement―27―

allowance and annual pension, amount deducting the pension asset amount assessed from thepresent value method based on future estimated retirement benefit is account for allowance.
And retirement benefits for counselors are accounted for the estimation at the end of period
based on the related private regulation and expressed in the combined form.
(4) Account processing of consumption tax, etc.
Account processing of consumption tax, etc. is controlled by the before tax method.

2. Change in important account policy
There were no changes in important account policy.

3. Change in designated assets and balance
The change in designated assets and balance are as follows.
(Unit: yen)
Subject
Buildings

Balance at the end of
previous period

Current increased
amountCurrent decreased
amountBalance at the end ofcurrent period

237,679,539

0

38,635,049

199,044,490

Ancillary buildings

1,310,928

0

1,310,838

90

Structures

2,059,385

0552,959

1,506,426

Machine and equipment

604,502,982

3,100,000

157,040,058

450,562,924

Tools and furniture

48,138,006

36,000,638

31,947,602

52,191,042

Lump-sum depreciable assets

1,170,833

1,454,907

1,349,031

1,276,709

Intangible fixed assets

9,854,811

2,811,000

4,340,432

8,325,379

Special assets for retirement lump sum
grants benefits package allowance

3,435,900,000

003,435,900,000

Specific assets for reserves foracquisition of research facilities

4,300,000,000

01,100,000,000

3,200,000,000

Special assets for special project
reserves

1,450,000,000

0540,000,000

910,000,000

Specific assets for purpose of setting up
bases

5,997,134,033

0933,640,000

5,063,494,033

Total

16,087,750,517

43,366,545

2,808,815,969

13,322,301,093―28―

4. Breakdown of funding for fixed assets
The funding for fixed assets can be broken down as follows.

(Unit: yen)
(Including
appropriationfrom general net
asset )

(Including liability
relating item)(199,044,490)

-

-

90

(90)

-

-

1,506,426(788,625)(717,801)-

Machine and equipment

450,562,924(346,754,535)(103,808,389)-

Tools and furniture

52,191,042(52,191,042)--

Lump-sum depreciable assets

1,276,709(1,276,709)--

Intangible fixed assets

8,325,379(8,325,379)

-

-

-

Subject

Balance at the end of
previous period(Including
appropriation fromdesignated net asset)

199,044,490

Buildings
Ancillary buildings
Structures

Special assets for retirement lumpsum grants benefits package
allowance

3,435,900,000-

Specific assets for reserves foracquisition of research facilities

3,200,000,000-(3,200,000,000)-

Special assets for special project
reserves

910,000,000-(910,000,000)-

Specific assets for purpose of
setting up bases

5,063,494,033-(5,063,494,033)

-

Total

13,322,301,093(608,380,870)

5. Assets offered as collateral
No asset offered as collateral is recorded.

―29―(9,278,020,223)(3,435,900,000)(3,435,900,000)

6. Acquisition value, accumulated depreciation and balance at the end of current period
for fixed assets
Acquisition value, accumulated depreciation and balance at the end of current period for
fixed assets are as follows.

Subject

Acquisition value

Accumulated
depreciation(Unit: yen)
Balance at the end ofcurrent period

Special asset(5,551,901,704)(4,838,994,644)(712,907,060)

Buildings

485,172,882

286,128,392

199,044,490

Ancillary buildings

60,246,000

60,245,910

90Structures

28,268,470

26,762,044

1,506,426

4,842,579,324

4,392,016,400

450,562,924

118,722,555

66,531,513

52,191,042

Lump-sum depreciable assets

3,764,713

2,488,004

1,276,709

Intangible fixed asset

13,147,760

4,822,381

8,325,379

Other fixed asset(107,692,948,023)(82,088,749,849)(25,604,198,174)

Buildings

20,677,999,735

10,219,674,440

10,458,325,295

Ancillary buildings

13,546,293,407

10,208,739,548

3,337,553,859

Structures

5,941,220,139

4,639,283,586

1,301,936,553

Machine and equipment

50,983,657,695

43,063,494,838

7,920,162,857

Tools and furniture

11,601,496,263

9,819,718,684

1,781,777,579

Rolling stock and vehicle

115,122,083

80,066,894

35,055,189

Lump-sum depreciable assets

152,793,980

93,785,919

59,008,061

4,674,364,721

3,963,985,940

710,378,781(113,244,849,727)(86,927,744,493)(26,317,105,234)

Machine and equipment
Tools and furniture

Intangible fixed asset
Total

―30―

7. Claimable assets, balance of allowance for doubtful debts at the end of period, andbalance of claimable assets at the end of period
Claimable assets, balance of allowance for doubtful debts at the end of period, andbalance of claimable assets at the end of period are as follows.
(Unit: yen)

Subject

Account receivable

Claimable assets

Balance of claimableassets at the end of
period

2,093,724,144

0

2,093,724,144

28,852,000

028,852,000

2,122,576,144

0

2,122,576,144

Housing loans and welfare loans
among special assets of accrued
retirement benefits
Total

Balance of allowancefor doubtful debts at
the end of period

8. Contingent liabilities such as guarantee liabilities
A guarantee liability to employees housing loans is 1,606,953,765 yen.

9. Breakdown of held-to-maturity bond certificates and book values, actual values andappraisal profit or loss
The breakdown of held-to-maturity bond certificates and book values, actual values andappraisal profit or loss is as shown below.
(Unit: Yen)
Type and issue nameBook value

Actual value

Appraisal profit/loss

No. 108 yield-bearing government bond (5yr)

320,289,600

320,448,000

158,400

Total

320,289,600

320,448,000

158,400―31―

10. Breakdown of subsidies, etc. and delivers, current increase/decrease, and balance
Breakdown of subsidies, etc. and delivers, current increase/decrease, and balance are as
follows.
(Unit:yen)
Current
increase

Describing
division inbalance sheet

Deliverer

Balance at theend of period

Subsidy for projects
assessing impact on powersystems of mass adoption of
distributed generation

Ministry of
Economy,Trade andIndustry

135,362,135

0

48,324,257

87,037,878

Designatednet assets

Project to promote theintroduction of solar power
generation system at
CRIEPI’s laboratories in the
Yokosuka area in fiscal 2008

New Energy
and Industrial
Technology
Development
Organization

9,752,187

01,238,527

8,513,660

Designatednet assets

Project to promote
introduction regional newenergy in fiscal 2009

New Energy
PromotionCouncil

2,117,660

0311,296

1,806,364

Designatednet assets

Applicability survey of
manufacturing technology
for fly ash concrete not using
cementMinistry of
Economy,Trade andIndustry019,897,999

19,820,065

77,934

Designatednet assets

Research and development
for Advanced Humid Air
Turbine (AHAT) System

Ministry of
Economy,Trade andIndustry01,400,000

1,400,000

0

R&D for SiC innovative
power electronics to create a
low-carbon society(super-thick membrane andmulti-layer SiC epitaxial
wafer technology)

Japan Society
for thePromotion of
Science

84,744,705

0

30,723,182

54,021,523

Designatednet assets

Review of measures forutilizations of micro hydropower generation in forestry
areas

National Land
Afforestation
Promotion
Organization

702,736

14,323,841

14,579,938

446,639

Designatednet assets

Fiscal 2010 grant for projectto subsidize costs ofdevelopment of dual
analog/digital equipment toalleviate poor reception

Association for
Promotion of
DigitalBroadcasting

946,7150

158,101

788,614

Designatednet assets

233,626,138

35,621,840

116,555,366

152,692,612

Name of subsidies

Current decrease

Balance at theend of period

Subsidies










-

Grants






Total

―32―

11. Breakdown of transfer from designated net assets to general net assets
Breakdown of transfer from designated net assets to general net assets is as follows.
(Unit: yen)Content

Amount of money

Transfer to balance of current accountDepreciation allowance related to designated net assets

155,008,461

Transfer by exception from specification as designated net asset

5,960,900

Transfer by implementing of project for which subsidy was received

35,504,940

Transfer to non-recurring revenue
Transfer due to retirement of designated net assets

23,241,748
219,716,049

Total

12. Trading content to related parties
No trading to related parties is recorded.

13. Important subsequent event
No important subsequent event is recorded.

―33―

14. Notes on assets from projects implemented
The balance of assets from projects implemented are as follows.
(Unit: yen)
Subject

Book value at start of fiscal year

Book value at end of fiscal year

Special asset(904,716,484)(712,907,060)

Buildings

237,679,539

199,044,490

Ancillary buildings

1,310,928

90

Structures

2,059,385

1,506,426

Machine and equipment

604,502,982

450,562,924

Tools and furniture

48,138,006

52,191,042

Lump-sum depreciable assets

1,170,833

1,276,709

Intangible fixed asset

9,854,811

8,325,379

Other fixed asset(34,303,619,241)(33,570,161,137)

Land

8,243,518,118

8,243,518,118

Buildings

10,722,257,606

10,254,164,079

Ancillary buildings

3,310,360,101

3,318,119,013

Structures

1,268,774,869

1,300,971,767

Machine and equipment

8,220,580,234

7,914,672,741

Tools and furniture

1,848,576,275

1,740,788,545

Rolling stock and vehicles

19,873,527

34,068,131

Lump-sum depreciable assets

43,043,318

59,008,061

Intangible fixed asset

626,635,193

704,850,682

Total(35,208,335,725)(34,283,068,197)

15. Retirement benefit related(1) Summary of employed retirement benefit
CRIEPI has established a defined-benefit pension system for its retirement pension
program and retirement lump sum grants.

―34―

(2) Retirement benefit liability and its contents(Unit: yen)
△22,890,693,467[1] Retirement benefit liability[2] Retirement pension asset

13,969,961,020[3] Non-accumulated retirement benefit ([1]+[2])[4] Non-depreciated mathematical calculation difference[5] Unamortized past service liabilities△ 8,920,732,447△ 335,857,208

1,050,124,761[6] Accrued retirement benefits for employees ([3]-[4]-[5])△ 9,635,000,000(3) Items for retirement benefit expense(Unit: yen)
[1] Working expense

987,940,652[2] Interest expense

226,676,929△133,855,325[3] Expectable operation benefit[4] Mathematical calculation difference depreciation

560,270,259△525,062,380[5] Unamortized past service liabilities[6] Retirement benefit expense ([1]+[2]+[3]+[4]+[5])1,115,970,135(4) Primary pension assets
The percentage of each main category making up total pension assets is as follows.
Bonds

51%

Stocks10%

Cash and deposits

6%

Other

33%

Total

100%

Total pension assets include 17% in retirement benefit trusts established for the
corporation pension plan.

―35―

(5) Items for calculation bases of retirement benefit liability[1] Period allocation method of retirement benefit expectation: Period fixed amount standard
based on the working period[2] Discount rate: 1.0%
[3] Expectable operation benefit: 1.0%
[4] Processing year of difference on mathematical calculation: Five-year constant percentage
method is applied for depreciation after next year of occurrence.
[5] Number of years over which past service costs are amortized: Past service costs areamortized using the straight-line depreciation method for a five-year period from the fiscal
year in which they were incurred.

―36―

II. Supplementary Statement
1. Details on specific assets(Unit: yen)Book value at startof fiscal period

Increase in current
fiscal period

Decrease in current
fiscal period

Book value at endof fiscal period

237,679,539

0

38,635,049

199,044,490

Ancillary buildings

1,310,928

0

1,310,838

90

Structures

2,059,385

0552,959

1,506,426

Machines and equipment

604,502,982

3,100,000

157,040,058

450,562,924

Tools and furniture

48,138,006

36,000,638

31,947,602

52,191,042

Lump-sum depreciable assets

1,170,833

1,454,907

1,349,031

1,276,709

Intangible fixed assets

9,854,811

2,811,000

4,340,432

8,325,379

Special assets for retirement
lump sum grants benefits
package allowance

3,435,900,000

003,435,900,000

Specific assets for reserves foracquisition of research facilities

4,300,000,000

01,100,000,000

3,200,000,000

Special assets for special project
reserves

1,450,000,000

0540,000,000

910,000,000

Specific assets for purpose of
setting up bases

5,997,134,033

0933,640,000

5,063,494,033

Total special assets

16,087,750,517

43,366,545

2,808,815,969

13,322,301,093

Type of asset
Buildings

Notes
1. The decrease in specific assets for reserves for acquisition of research facilities is due to the liquidation of specific assets for theacquisition of power plant thermal hydraulics laboratory, facilities to test the light water reactor’s simulated fuel cooling limit and apower system simulator.
2. The decrease in specific assets for reserves for projects was due to the liquidation of specific assets for the purpose of carrying out
joint research and moving research facilities to the Yokosuka area laboratories.
3. The decrease in specific assets for the purpose of setting up bases was due to the liquidation of specific assets for the purpose of
acquiring new research laboratories in Yokosuka.

―37―

2. Breakdown of Allowances(Unit: yen)

Category

Balance at start offiscal period

Increase incurrent fiscal
periodDecrease in current fiscal period

Balance at end of
fiscal period

Other

Intended use

Allowance for employees

253,000,000

244,000,000

253,000,000

0244,000,000

Allowance for retirement
benefits for directors

440,000,000

87,000,00000527,000,000

Allowance for retirement
benefits for employees

9,757,000,000

1,099,684,035

1,221,684,035

0

9,635,000,000―38―

Audit Report by Third-Party Auditor
May 8, 2015
Central Research Institute of Electric Power Industry
President Masahiro Kakumu
Meisho auditors
Senior Partner
Managing Partner

Certified Public Accountant

YoshihiroWada
Certified Public Accountant

Managing Partner

Masayuki Tomikawa

We audited the financial statements of the Foundation of Central Research Institute ofElectric Power Industry (hereinafter referred to as “CRIEPI”) in the fical 2014 business termfrom April 1, 2014 to March 31, 2015, including balance sheets, profit and loss statement(“Statement of Changes in General Net Assets” according to the stipulations of the Public
Interest Corporation Authorization Guideline II-4), supplementary statements, notes on
financial statements and the breakdown of the “Statement of Changes in General Net Assets”
cash flow calculation sheet, notes on financial statements and list of assets (hereinafter, thesubjects of our audit will be referred to as “financial statements”), in accordance with Clause
199 of the Act on General Incorporated Associations and General Incorporated Foundations
and Paragraph 1, Section 2, Clause 124 of the same Act.

Management’s responsibility for financial statements
Management is responsible for the preparation and fair presentation of the consolidated
financial statements in accordance with accounting principles generally accepted in Japan,
and for such internal control as management determines is necessary to enable the preparationof consolidated financial statements that are free from material misstatements, whether due tofraud or error.

Auditor’s responsibility
Our responsibility is to express an opinion on the consolidated financial statements
based on our audit as an independent auditor. We conducted our audit in accordance withauditing standards generally accepted in Japan. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the consolidated financial―39―

statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts
and disclosures in the consolidated financial statements. The procedures selected depend on
our judgment, including the assessment of the risks of material misstatement of theconsolidated financial statements, whether due to fraud or error. In making those risk
assessments, we consider internal control relevant to the entity’s preparation and fairpresentation of the consolidated financial statements in order to design audit procedures thatare appropriate in the circumstances, while the objective of the financial statement audit is not
for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of accounting estimates made by management, as well as evaluating theoverall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.

OpinionIn our opinion, the financial statements referred to above fairly present, in all material
respects, the net change in assets and profit/loss (change in net assets) for the period for which
the financial statements were prepared, in accordance with accounting principles generally
accepted in Japan.

Interests
Our firm and its employees have no interest in CRIEPI which should be disclosed
pursuant to the provisions of the Certified Public Accounts Law of Japan.

―40―Audit ReportAudit Report
We audited management’s execution of their professional duties and CRIEPI’s financial
assets and income and expenditures in the fiscal year from April 1, 2014 to March 31, 2015
and report the audit method and results as follows.

1. Audit method and description
In accordance with the audit standards and the fiscal 2014 audit plan, we sought tofacilitate mutual understanding with directors, the Internal Auditing Department and other
employees, gathered information and worked to improve the environment for conducting
audits. In addition, we attended meetings of the Board of Directors and other important
meetings, received reports from directors and other employees regarding the performance of
their duties, and when deemed necessary, sought explanations, and perused important
documents in surveying business and financial conditions.
We received reports on the establishment and administration of the system establishedto ensure appropriate and efficient business operations (internal control system) fromdirectors and other employees, and sought explanations when deemed necessary.
Moreover, we examined whether the independent auditor was correctly performing theaudit and also received reports from the independent auditor on the execution of these
responsibilities and sought explanations when deemed necessary.
Based on the above methods, we examined the business reports and statements ofrevenue and expenditures (balance sheets and statement of changes in general net assets) andsupplementary statements.

2. Results of audit(1) Results of audit on directors’ execution of duties and internal control systema.

We have determined that there were no serious occurrences of dishonest or false
activity or violations of any laws or the Articles of Incorporation by any of thedirectors in carrying out their duties.

b.

There are no points to note regarding the establishment and administration of theinternal control system.

(2) Results of audit of business reportsa.

We have determined that the business reports properly indicated the condition of―41―

CRIEPI in accordance with laws and Articles of Incorporation.
b.

We have nothing to point out as regards the descriptions in the business report of theinternal control system.

(3) Results of audit of Financial Statements and Supplementary Statements
The method of audit employed by Meisho auditors and the results thereof are properand the financial statements and supplementary statements properly presents CRIEPI’s
financial assets and income and expenditures in all important respects.

May 19, 2015
Central Research Institute of Electric Power Industry
General Auditor, Kouichi Nishi
General Auditor, Yoshihiro Naito
General Auditor, Koji Kaibe―42―

Overview of Research Results

1. Priority subjects and priority subjects with limited terms
CRIEPI identified 35 priority subjects for its research, selected as those the technologies
that will be most dispensable to the electric power industry at present and in the future, on
which to focus its efforts and maintain, continue or expand.
We identified 10 priority subjects with limited terms from among these priority subjects
as particularly urgent issues that must be resolved quickly through the Institute’s collective
strengths, and produced timely results. Priority subjects and priority subjects with limited
terms that are highly inter-related will be grouped together in 11 subject groups as we
endeavor to produce and disseminate effective results. The main research results for priority
subjects and priority subjects with limited terms are outlined below for each pillar andresearch group.
(1) Establishment of Optimal Risk Management
Nuclear Power Plant Safety

Evaluation of LWR System Safety: We developed a model to assess accident progress(accident sequence evaluation model) and a model to assess radioactive substanceemissions when accidents occur (source term evaluation model) with a view toestablishing a probabilistic risk assessment for incidents caused by earthquakes(earthquake PRA). Using these, we carried out a trial risk assessment of an actual plantand confirmed that we could effectively evaluate the plant’s vulnerabilities andcountermeasures.

Assessment of Natural Hazards to Nuclear Facilities: We developed a method of
estimating deep ground structures (several kilometers in depth) from the results of
microtremor measurement with a view to predicting ground motion in aseismic designof facilities with a critical function at nuclear power plants. We also integrated a methodof estimating volcanic smoke and ash fall with the Numerical Weather Forecasting andAnalysis System (NuWFAS) in order to assess the impact of ash fall on power plants.
This made it possible to estimate changes over time in the distribution of ash fall over awide area.

Fragility Assessment of Nuclear Facilities against External Natural Phenomena:
We developed a non-linear numerical analysis method that can caluculate the timing ofsoil faillure and the amount of soil strain with a view to evaluating seismic stability of afoundation ground and surrounding slopes of a nuclear power plant when an earthquake
occurs. We also verified the accuracy of the analysis method with numerical correlations
on scaled model test results. In order to evaluate the tenacity of nuclear power facilities―43―

in the face of a tsunami, we used evaluation experiments in tsunami and flood channeland developed a method of estimating tsunami shock wave pressure on structures fromthe front of the tsunami as it runs up onto the shore.


Development of Environmental Diffusion Evaluation Methods and Long-term
Behavior of Radioactive Materials: We developed a transfer model of radioactive
materials to marine sediment and marine organisms, in addition to oceanic diffusion of
released radioactive materials. We applied this model to actual oceanic waters and foundthat the reduction and delay in the concentration of radioactive materials in marineorganisms on the sediment can be attributed largely to the movement via prey organisms
on the sediment.



Establishment of Methodologies to Evaluate Fires in Nuclear Facilities: We
established construction methods for automatic foam extinguishing systems for fires incable trays with a view to devising measures to mitigate the impact of fires in nuclear
power plants, and confirmed its effectiveness through fire verification tests. We also
carried out internal arc fire experiments on low-voltage power panels and clarified theconditions (arc energy thresholds) in which fires would develop after an arc is
generated.

Radiation Risk


Quantitative Evaluation of Low-dose Radiation Risk and Reflection to Radiation
Protection Systems: We confirmed by radiation exposure experiments that there are
discrepancies in behavior of tissue stem cells to maintain stem cell function between
low and high dose-rate. This is aimed at clarifying the impact of radiation exposure on
cancer risks. As a result, we forecasted that it would be possible to establish amechanistic hypothesis that damaged stem cells are eliminated from the body throughcompetition and thus the impact of exposure does not accumulate.

Nuclear Fuel Cycle and Backend Technologies


Systematization of Long-term Safety Evaluation for Radioactive Waste Disposal:
Damage to the engineered barrier material as a result of the hydrogen gas emitted fromthe waste through metallic corrosion is a concern in disposing of low-level radioactive
waste, and in order to assess its long-term soundness, we carried out tests to clarify themechanism by which gas moves within the bentonite materials used in the barrier.
Based on this, we developed a method of evaluating gas movement.



Development of Long-term Storage/ Management Technologies for Spent Fuel:We developed a device capable of automatically and simply measuring salt
―44―

concentration over a long continuous period, which is needed to assess stress corrosion
cracking (SCC) in canisters. We confirmed that this can be used on the frontlines. Usinga simulation testing device, we assessed the salt concentration on the surface of
canisters in concrete casks, and clarified that the salt concentration adhering to thesurface is sufficiently low compared to the SCC limit value even when the amount ofsalt in the atmosphere along the coast is substantial.
Natural Disaster Reduction on Transmission and Distribution Facilities


Development of Prediction Methods of Weather/Climate Affection to ElectricPower Facilities: We developed an evaluation method through numerical analysis of
tornado missiles’ speed and dispersal to devise methods for impact assessment andprotection in the event that tornado missiles hit important facilities at a nuclear power
plant. We also experimentally verified the collision energy absorption performance andpenetration prevention performance of high-strength steel net, developed as a protection
measure, by carrying out tests in which heavy bobs simulating missiles were dropped.

Demonstration of Preventive and Mitigating Measures against Snowstorm Damage
to Transmission and Distribution Facilities: We observed cases of the accretion ofsnow characterized by strong winds and moisture at full-scale test facilities forsnow-storm damage (transmission lines in the Kushiro area). We analyzed theseobservational results and clarified conditions in which countermeasures would have themost effect and the impact of heat generation on transmission lines through powertransmission currents.



Risk Management against Lightning: There are concerns about malfunctions caused
by electromagnetic noise caused by surges and other phenomena in general-purpose IP(Internet Protocol) equipment introduced to power stations and substations. Accordingly,
we carried out experiments to reveal the impact of electromagnetic noise on the IP
transmission of the equipment. Based on these results, we observed the threshold noiselevel to create communication errors and established methods to evaluate theappropriateness of introducing IP equipment to power stations and substations.

Energy and Environment Institutions
Well-functioning Electricity Market and Neutralization of Network: Mechanisms ofbalancing supply/demand through a nationwide supply/demand balancing market inGermany following the high penetration of renewable energy and trends in the costs
incurred to relieve congestion during actual operations demonstrate that the cost of
ensuring reliability of a power transmission system had not declined when electric―45―

power transmissions were unbundled. Moreover, we clarified the current problems witheconomic methods encouraging the new construction and expansion of nuclear power
generators following deregulation in Europe and the points to note in the event that it isadopted in Japan.
Institutional Environments surrounding Nuclear Industry: A national public survey
on energy policy and nuclear power generation technology indicated that in order toraise understanding of electric power industry’s activities and restore trust in them,interest in energy issues overall, such as securing stable resources, must be stimulated
and the public must understand that the electric power industy shares the public’s
concerns over its impact on the environment and health for people in the future.



Climate Change Policy: We found that since energy prices are high and energy
efficiency levels are also extremely high in Japan, policies such as taxes and more
severe regulations have little cost effectiveness, while voluntary initiatives in industry
that are economically rational are effective in augmenting the government’s policy
methods.

Scientifically and Economically Rational Scenarios to Reduce CO2 Emissions: We
surveyed the IPCC’s new information on the climate impact, which is considered as
basis for judgment about long-term targets for reducing CO2 emissions, and explicatedthe concept of climate change risks and evaluation points. We clarified that the assessedrisk levels for climate change depend on the scope of risks and associatedsocio-economic factors.

(2) Further Improvement of Facility Operations and Maintenance Technologies
Nuclear Power Plant MaintenanceStructural Integrity Evaluation of Reactor Pressure Vessels and Core Internals:
We carried out elevated temperature tensile tests at various temperatures on thematerials used in penetrations existing at the bottom of research vessels, and developed
a method to estimate the relationship between stress and strain in each material. Thiswas part of our efforts to evaluate the soundness of reactor pressure vessels in the eventof a severe accident.



Integrity Evaluation of LWR Components and Piping: With a view to evaluating thestructural integrity of equipments made of cast stainless steel used in main coolant
systems in LWRs, we evaluated the change in the microstructure, the hardness and thefracturetoughness of materials that have suffered thermal aging heat treatment. We willdevelop prection method of reduction of fracture toughness due to thermal aging.
―46―



Integrity Evaluation of Cable Insulation used in Nuclear Power Plants: In order toestablish soundness evaluation methods for instrumentation and control cables atnuclear power plants, we evaluated the mechanical characteristics of the insulating
materials in degraded cables removed from power plants, and demonstrated that
degradation was less severe than predictions made using the conventional cableage-related degradation evaluation method.



Development of Nondestructive Inspection Techniques for LWR Components andPiping: We developed phased-array ultrasonic testing methods able to measure crack
length (radial dimension) with a high degree of accuracy with a view to evaluating thesoundness of anchor bolts stabilizing pressure vessels. In addition, we developed anon-destructive inspection technique for measuring the depth and length of cracks byimaging the shape of the cracks formed in the dissimilar metal welds, such as reactor
vessel outlet and inlet nozzle weldss.

Construction, Operation and Maintenance of Power Generation Facilities


Development of Life Assessment Technology for High Temperature Structural
Components of High Chromium Steels: We developed a life assessment method
depending on the various shapes of the welded part and the repair welding for creep
damage in the welded parts of high chromium steel pipes to maintain stable operationsof ultra super critical thermal power plants. We examined the accuracy of thisassessment method using full-scale pipes at a demonstration creep test facility.



Development of Comprehensive Atmospheric Assessment Method for Thermal
Power Plants: In order to assess the impact of thermal power plants on PM2.5 observedin regions in Japan, we evaluated sources of PM2.5 in Japan and overseas using
numerical analysis methods that tag the substance causing PM2.5 and track it. This
showed that 47% of the derivations were overseas, and the impact of thermal power
plants in Japan was 3%.

Development of Technologies for Increasing the Use of Coal Ash: In order toestablish the environment safety assessment of coal ash products used in groundmaterials, we developed a measuring equipment system for boron in coal ash, based onthermal neutron absorptiometry, and a rapid leaching test method for fluorine in coal ash
using wet ball-milling.



Development of Technologies of Environmental Impact Assessment for
Biodiversity Conservation: In order to efficiently implement environmental
assessments of wind-powered electricity, a new target of assessments, we developed a―47―

method to reconstruct 3D positions of bird flight trajectories from video observation
instead of the previous visual observation of bird flight trajectories. This made it
possible to estimate the number of bird collisions with a high degree of accuracy.
Synthesis System of Numerical Analysis for Current and Sediments in Rivers andReservoirs: We added functions to predict the movement of sediment accumulated inreservoirs and changes in water quality to the existing system predicting rainfall
intensity and discharge, and developed an integrated system for flood and sediment
behavior projection that can predict the flow from a river’s upper stream to the mouth of
the stream and the behavior of sediment during floods. This is intended to encourage
rational dam operations.

Operation and Maintenance of Transmission and Distribution Facilities


Maintenance and Management Technologies of Aged Transmission andDistribution Facilities: We applied a technology to detect coil abnormalities using
frequency response analysis (FRA) to the diagnosis of oil-immersed transformers in two
situations as one solution to efficiently maintain transmission and distribution facilities.
Based on the investigation dismantlement of transformers and the diagnostic resultsfrom FRA, we devised criteria to determine coil abnormalities that should be adopted inboth emergency diagnoses, such as lightning surges, as well as detailed diagnoses
carried out in routine inspections.



Development of Soundness Assessment Technologies of Aged Transmission Towers:
With the aim of devising a simplified assessment method for corrosion inside steel pipes,
we applied new corrosion speed assessment methods utilizing several sensors to steel
pipes exposed to the natural environment for about two and a half years, and confirmedthat it was generally consistent with actual corrosion speed distribution. In addition, we
confirmed that the guided wave measurement method used in cooling pipe inspectionsat power plants could detect thinning resulting from corrosion inside steel pipes, andtheorized that this method could be applied to corroded parts of steel towers.

(3) Development of a Supply/Demand Infrastructure for Next-generation Electric Power
Next-generation Thermal Power Technologies


Improvement of Operation and Control Technologies to Diversify Fuel Types for
Pulverized Coal Fired Power Plant: We clarified the operating conditions forpulverizers that would enable a high coal blending rate for low HGI bituminous coal,
which is hard to grind, with the aim of expanding the use of this more affordable type ofcoal at existing pulverized coal fired power plants. We also tested the corrosion―48―

resistance effect of a sulfide corrosion resistant coating (already developed, CRIEPI
COAT) in boiler water wall tubes. We confirmed that it could be used simply and at low
cost. CRIEPI COAT reduced corrosion to 25% or less compared with an uncoated part.


Advancement of Utilization Technologies for Low Rank Energy Resources: A
biomass carbonization prome as a measure to expand the biomass co-firing rate inexisting thermal power plants. We carried out carbonization tests on cedar chips andclarified the impact of operating conditions such as residence time and carbonization
temperature on fuel properties of carbonizaed biomass. The results showed that by using
the ratio of carbonizaed biomass production rate and raw biomass feed rate as operation
indicators, carbonized biomass with consistent properties can be produced stably and inlarge quantities.

Next-generation Power Grid Technologies
Power System Security Assessment with High Penetration of Photovoltaics: With
the aim of improving the efficiency of operations of electric power systems whenphotovoltaic power is adopted on a large scale, we systematically addressed the impact
of individual system conditions, such as the site at which photovoltaic power is adopted
and operating conditions, on the system stability of the power system. Using theseresults, we confirmed that system conditions with a major impact on system stability
can be easily ascertained even when multiple system conditions change through analysis
utilizing system models at actual scale.



Development of Accurate Power Output Estimation and Forecast Techniques of
Photovoltaic Power Generation: In order to ascertain the photovoltaic power
generation output in each region, which fluctuates depending on the weather, wedeveloped a method to estimate in real time the amount of solar radiation needed tomeet supply/demand in one-minute increments from weather satellite images recorded
and delivered every 30 minutes. We also developed a method of estimating the incident
solar radiation amount for the PV panel surface of PV array contributing to photovoltaic
output in order to accurately estimate photovoltaic output.



Development of Next Generation Distribution Network Techniques: In order tosupport prompt recovery after incidents at power distribution lines in whichphotovoltaics are interconnected in a large volume, we developed a method of
estimating actual load and photovoltaic power generation output in real time based on
power flow data from switches with sensors on power distribution lines. We confirmedthat this method can be applied to capital plans for power distribution systems andoperations during accidents by comparing photovoltaic power generation output―49―

estimated from actual power distribution lines’ power flow data and actual measureddata.
Demonstration and Common Specification of Next-generation Communications
Network Systems: We evaluated transmission delay characteristics when IP based
microwave radio link is used for transmission line protection, which has severe delay
constraints to develop an IP network for highly reliable system protection and control.
As a result, we demonstrated that an IP network for system protection and control could
be built by incorporating time synchronization mechanisms in microwave radio
equipment to compensate the influence of delays.

Assessment of the Value of Next-generation Demand Management: With a view toforecasting future power demand, we gave questionnaires on an ongoing basis on power
conservation over four years following the Great East Japan Earthquake and confirmedthat awareness of power conservation and initiatives has gradually declined. At the sametime, this demonstrated that there is a high possibility that, despite these conditions,gains in actual demand are being curbed in part because of cost-cutting awarenessresulting from updates to more efficient equipment and higher electricity charges.

Energy Utilization Technologies


Development and Evaluation of Advanced Heat Pumps: With the aim of promoting
and spreading high-performance heat pumps for industrial users, we carried out tests toassess the performance of the SGH165 heat pump for industrial use, which produces
165 ℃ vapor. We also clarified the impact that operating conditions such as thetemperature of heat source water at the entrance and vapor pressures have on the amountof vapor formed and energy consumption efficiency (system COP).



Establishment of Evaluation Technologies for High Performance Secondary
Batteries: In order to establish long-term operation method of battery energy storage
systems, which are now testing on the several fields for stabilization of the power gridinter-connected with large amount of renewable energy power generation systems, we
devised a method of analyzing the factors of a decline in the capacity of lithium ion
batteries during the charge-discharge cycle tests. We also evaluated quantativelly effectsof the increasing the internal registance on the degradation of the battery capacity.

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2. Basic technology subjects
Basic technology subjects are those that we address with the aim of identifying andresolving issues faced by the electric power industry and strengthening our basic researchskills, which are the source of our problem-solving, using our “pool of knowledge” consists ofknowledge useful on the frontlines, personnel with advanced expertise, sophisticated researchfacilities and our overseas and domestic human network.
We designated 35 basic technology subjects in fiscal 2014 to capitalize on the strengths
and specialized skills of eight laboratories with specific research fields. Our main results are
outlined below.
Socio-economic Research Center:

We examined the feasibility of devising a community-based strategy for electric powercompanies after full deregulation of retail sales, based on cases in the UK and elsewhere,
and determined that not only is there a need to always provide new value meeting theneeds of consumer and the community, but that various factors have an impact, such as
the region’s culture and history, the extent of urbanization and the community’s vitality.

In order to ascertain comprehensive costs of introducing renewable energy, wedeveloped a method of establishing an electrical power source composition and plan tominimize the cost of power generation that takes into account adjustments forfluctuations to frequency and lower power generation efficiency for thermal power. This
indicated that in the event that renewable energy is introduced on a large scale, thecapacity of power generation facilities on the system-side can only be reduced slightly,
and a reduction in the facility use rate of thermal power plants would increase the power
generation unit cost.

System Engineering Research Laboratory:

In order to evaluate the impact on supply/demand adjustments, such as inadequate
capacity to adjust the frequency of power systems as a result of the large-scale
introduction of renewable energy, we built a simple and multi-purpose analytical modelwith few setting parameters that can be used with electric generators of various
specifications for thermal power generators, the primary regulated power source, anddeveloped a simulation method that can simulate output fluctuations in electric
generators relative to fluctuations in frequency.



We developed a method of estimating the air temperature, air flow distribution and thepower consumption based on catalog information for various room air conditioners to―51―

achive both energy conservation and comfort. Using this method, we developed a tool
to support the selection of a suitable type of air conditioner that can adapt to various
lifestyles.
Nuclear Technology Research Laboratory:

In order to evaluate the conditions of the reactor core under atmospheric pressure
resulting from severe accidents, we carried out boilup experiments with a simulated fuelbundle. The quantified coolant boiling behavior revealed the core coolability underatmospheric pressure.

In order to evaluate safety for storing radioactive waste material, we clarified theincrease in internal pressure in storage containers resulting from water vapor from thezirconium molybdate adhering to waste material from the fuel cladding, and expanded
the knowledge needed to assess the safety of storage vessels.

Civil Engineering Research Laboratory:

In order to contribute to the evaluation of the activity of fault fracture zones in bedrock,we established a method of evaluating activity by specifying the most recent fault
planes using helical X-ray CT scanners and others, and determining the breakage ofminerals on the fault plane.

In order to contribute to the development of a structural capacity assessment method forsteel-reinforced concrete structures after an earthquake, we carried out load tests forsteel-reinforced concrete parts, and clarified the relationship between the widening of
cracks and a decline in bearing force. As a result, we developed a method ofdetermining the damage level for parts from measurements of the widening resulting
from cracks in the parts.

Environmental Science Research Laboratory:

We developed a biological process for the treatment of selenium in desulfurization
wastewater in coal-fired thermal power plants. The process using microorganisms
lowers the treatment cost by reducing the amounts of chemicals and sludges, comparedto the conventional chemical process.



We developed a method for analyzing the coastal current pattern and its frequency withflow observation using ocean radars for the environmental impact assessment of coastal
power plants construction. This method reduces the number of observation points with aconventional velocimeter, and is expected to cut down the period and cost of oceanic―52―

observation.
Electric Power Engineering Research Laboratory:

We carried out tests in which lightning impulse currents were applied to clarify thecauses of smart meter malfunctions resulting from lightening and the conditions underwhich they occur in order to establish lightning protection for smart meters. Based onthese results, we determined that the rate at which lightning malfunctions occur can be
reduced by reinstalling lightning protection elements within the meter.



We have developed generic simulation models of distributed energy resources andincorporated them into the electromagnetic transient analysis program XTAP developed
at CRIEPI. These models are used for assessing, for instance, the contribution of alarge-scale photovoltaic generation system (solar farm) to fault currents in atransmission system.

Energy Engineering Research Laboratory:

In order to establish rational inspection methods for gas turbine rotor blade thermal
barrier coating, we devised an efficient testing process for non-destructive inspections
looking at several areas of damage and deterioration, such as coating thinning anddelamination. This inspection process is based on priority rankings taking into accountthe impact on rotor blade durability and the reduction in time achieved by narrowing thetargets in a simplified inspection.

With the aim of developing quantitative evaluation methods through numerical analysisof thermal flow within the pulverized coal boiler, we endeavored to improve analysis
accuracy and raise the sophistication of advance projections of combustion
characteristics of unused coal by deciding on swirling air inflow conditions from theeach burner for numerical analysis in a comparative inspection with onsite measurement
data.

Materials Science Research Laboratory:We succeeded in verification tests for the manufacture of high-quality SiC single-crystal
ultra-thick film six inches in radius that can be used with power semiconductors with
voltage resistance over 13kV to develop low-loss power transformers using SiC power
semiconductors.

With the aim of reducing sulfurization in water wall tubes at coal-fired boilers, weclarified the effect of periodic gas composition fluctuations within the boiler on―53―

sulfidation rate of water wall tube materials made of low-alloy steels, and also proposeda new non-destructive inspection method that can identify the areas where sulfidation
has taken place quickly and at low cost to coal-fired boilers.

―54―