FY 2011
Reports on
Research Activities
Settlement of Accounts
From April 1, 2011
To March 31, 2012

June 2012
Central Research Institute of Electric Power Industry

Contents
Reports on Research Activities
Page
On the Publication of the Research Activities Reports for Fiscal 2011

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Key Initiatives in Fiscal 2011

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I. Research Activities

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II. Administration

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III. Workforce

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IV. Meetings Held・・・・・・・・・・・・・・・・・・・・・

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I. Financial Statements

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II. Statement of Revenue and Expenditures

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Settlement of Accounts
Outline of Settlement of Accounts

Audit Report by Third-Party Auditor

Audit Report
Audit ReportReports on Research Activities
FY 2011

On the Publication of the Research Activities Reports
for Fiscal 2011
The Great East Japan Earthquake and Fukushima Daiichi nuclear accident had great
effects on the Japanese economy and society. Although the Fukushima Daiichi Nuclear Power
Plant is past the worst days following the accident and efforts are now focused on stabilization,
the plant faces many medium- to long-term issues, such as decontamination of thesurrounding area and decommissioning the reactor. Although the electric utility industry is
doing everything in its power to restore trust and ensure the safe supply of energy, the public
is taking a severe line on the industry’s business framework and rate system. Coupled withpressures on energy supply and demand and a deteriorating bottom line resulting from theprolonged idling of nuclear power reactors, this makes for a harsh business environment.
In light of these conditions, during this fiscal period CRIEPI has drastically revised its
initial business plan and budget.
Accordingly, CRIEPI focused on the following areas in fiscal 2011.
Research with the aim of building a solid and flexible new electric power supply/demand
structureResearch and development enabling prompt technical support in responding to disasters
and nuclear power plant accidents and the resolution of medium- and long-term issues

Extensive cost-cutting based on budget constraints resulting from compensation
reductions, and redevelopment of research bases

CRIEPI will become a general incorporated foundation in fiscal 2012, a transition thatwill signal our commitment to make even greater strides in conducting our businessautonomously in line with the spirit that motivated our founding. We will contribute to theelectric power industry and society by reinforcing our research system and publicizing andmaking available our scientifically objective research results.

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Key Initiatives in Fiscal 2011Research with the aim of building a solid and flexible new electric power
supply/demand structure

We have designated research pillars that outline the direction of our research over the
medium term with the aim of building a new electric power supply/demand structure that will
be solid yet flexible. Using these research pillars to revise the existing research issues and set
new research issues, we have focused our resources in our priority areas. Below, we have laidout representative results achieved in research pursued under these three new research pillars.
(1) Establishment of optimal risk management
CRIEPI grappled with a rational aseismic design method, including reviewing anddeveloping steps to accommodate aseismic back-checks and stress tests on nuclear power
plants; research on the health effect of low-dose radiation; and the development oftechnologies to predict the damages caused to distribution facilities by natural phenomena
such as earthquakes, wind and rain and to support recovery efforts.


Development of methods for assessing the simultaneous rupture of inland faults toappropriately estimate scale of earthquakes
Assessment of health effect of long-term low-dose rate radiation through epidemiologicalstudies
Further improvements to accuracy of system supporting disaster recovery of power
distribution equipments used in the devastating earthquake(2) Further improvement of facility operations and maintenance technologies
CRIEPI promoted research on irradiation embrittlement of pressure vessels to operate
light-water reactors with greater safety and stability, and development of rational operations
and maintenance technologies for thermal and hydro power facilities.


Identification of embrittlement mechanisms for improving the prediction accuracy ofembrittlement correlation method
Development of creep life evaluation method for high-chromium steel piping at thermal
power plants
Development of a real-time forecast system for dam reservoir and river flooding(3) Development of a supply/demand infrastructure for next-generation electric power
CRIEPI developed next-generation thermal power technology enabling the effective useof low-grade fuel resources and greater efficiency in power generation and next-generation
grid technology that facilitate the adoption of renewable energy sources such as solar energy-2-

in power systems, and heat pumps with high energy conservation.








Development of combustion methods to increase the blend rate of low-grade coal withthe aim of the diversification of coal type used in coal-fired thermal power generation
plantsDevelopment of analytical tools for distribution systems helpful in understanding issues
such as voltage rises along distribution lines during high-volume introduction of solar
power
Development of CO2 heat pump for a central heating system that demonstrate highperformance even in cold areas
Research and development enabling prompt technical support in responding todisasters and nuclear power plant accidents and the resolution of medium- andlong-term issues

CRIEPI formed a special team involving all research centers immediately after theearthquake and responded promptly with research related to the disaster recovery andtechnical support, starting with the Fukushima Daiichi Nuclear Power Plant accident. Using
the specialized knowledge it acquired, we produced the following highly effective output inthe following areas, thus helping to solve problems on the frontline.
Contributed to the development of technology for establishment of highly stagnant
contaminated water treatment system and its stable operation
Presented countermeasures against the corrosion of spent fuel pools into which sea water
was injected
Implemented fine monitoring to contribute to the identification of the status ofcontamination resulting from the release and leakage of radioactive material and theenvironmental remediation

CRIEPI also began to introduce strong shake generator, which enables tests under theworld’s highest accelerations, and tsunami physical simulator, which can recreate thecharacteristics of high-speed and sustained tsunami to evaluate the force of impact on
structures. This is part of our effort to strengthen research on the earthquake-proof safety oflight-water reactors in the future.
In addition, we published our research results via a wide range of media outlets, academic
seminars and lectures in a timely manner, held a forum on restoration and recovery efforts
following the earthquake, and introduced some of CRIEPI’s activities to address the
Fukushima Daiichi Nuclear Power Plant accident.

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

Extensive cost-cutting based on budget constraints resulting from compensation
reductions, and redevelopment of research bases

Given budget constraints resulting from compensation reduction during the current fiscal
year, CRIEPI reduced costs extensively across operations and also cut personnel expenses,
starting with compensation for executive officers and managerial employees annual
salaries. Moreover, we decided to overhaul long-term measures such as the retirement
pension system and bring the current approximately 840 employees down to an
equilibrium point of about 800.

Consolidating and rebuilding our research bases will not only strengthen our future
research capacity but also lead to reductions in operating costs. Accordingly, we
continued these efforts with a close eye on income and expenditures. Moreover, we madepreparations to sell part of the land CRIEPI owns in Komae to raise money for upgrades
to research bases and new research and development.



CRIEPI established articles of incorporation and a public interest expenditures plan andreceived authorization for the transfer to the status of general incorporated foundationfrom the prime minister. We also set up an internal audit office as part of our efforts toestablish a highly effective internal control system.

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I. Research Activities
In fiscal 2011, the devastating earthquake brought drastic change to the electric powerindustry and Japanese society. In response to these changes, CRIEPI specified three areas asits main “pillars of research” for governing the medium-term direction of the institute’s
research activities, which seek to build both a robust and flexible energy supply-demand
structure in Japan. Working in line with these directive principles, CRIEPI has focused its
attention on select research projects to address the changes in the electric power industry andsociety, as well as the challenges of ensuring a stable supply of electricity and establishing anenergy supply/demand infrastructure for the future. CRIEPI utilized its expertise and thebroad range of base technologies it owns to rapidly respond to some of the most urgent issues,
including those related to earthquakes, tsunamis and nuclear power plant accidents.
Table 1 shows the number of reports issued and Table 2 shows the number of papers
presented, which illustrates our research results in fiscal 2011. We issued a total of 595 reports
and presented 1,407 papers both in Japan and overseas (of which 383 were papers withreferee readings).
1. Project Subjects
CRIEPI set 38 project subjects, selected as those most needed by the electric powerindustry and society and those requiring timely delivery of results and planning for
implementation. The institute put all of its efforts into this research, and the main research
results are outlined below.
(1) Establishment of Optimal Risk Management
CRIEPI pursued research on assessing the impact of natural phenomena and social andeconomic change on the electric power industry and proposing responses to this impact,
including social systems and frameworks.
In particular, CRIEPI accelerated its research on the formulation of rational aseismic
design methods for nuclear power plants and risk assessments of low-dose radiation, and also
pursued research on the new topic of proliferation impact assessment of radioactive material.
Moreover, the institute developed prediction methods, countermeasure techniques andrecovery support technology to address natural disasters affecting distribution facilities.
Energy Policies Analysis
 CRIEPI studied trends of regulatory reform in the electric power industry of Japan andforeign countries since the Great East Japan Earthquake and identified systematic
responses to issues occurring in the deregulated power market and the use of renewableenergy sources is promoted.
 We laid out the roles of power systems, disaster prevention products and dispersed-5-generation in disaster preparedness measures, based on the results of surveys on therestoration status of infrastructure such as electricity, gas and water, as demonstrated in anenergy use survey conducted in the regions affected by the Great East Japan Earthquake.
Improvement of Seismic Reliability
 In order to properly estimate the scale of earthquakes used in nuclear power plants’seismic assessment, we identified indicators to assess the simultaneous rupture of inland
active faults based on the results of surveys such as geomorphological surveys of areas
around active faults, numerical analysis and model experiments.
 We demonstrated that damping factors for the ground, needed when forming design basis
earthquake ground motions, can be evaluated from the ground characteristics measured
using a borehole and the results of material tests on the rock core, without having to rely
on records of earthquake observations.
Radiation Safety and Evaluation of Environmental Impact
 We closely monitored with Tokyo Electric Power Company the areas in which residents
are not allowed to return and the deliberate evacuation areas under the national“Comprehensive Monitoring Plan” in order to contribute to the identification ofcontamination caused by the release and leakage of radioactive material as a result of the
Fukushima Daiichi Nuclear Power Plant accident and the review of environmental
remediation. These results were publicized.
 We used the regional ocean dispersion model to carry out simulations on the radioactive
substances released into the ocean from the Fukushima Daiichi Nuclear Power Plant, andidentified the status of the dispersion of such substances along the coast. The amount ofradioactive substances released directly into the ocean was also estimated using
monitoring data.
 In order to assess the health risks due to long-term exposure to low-dose rate radiation, an
epidemiological study of residents living in high natural background radiation areas in
Guangdong, China was conducted over a period of 20 years. This study revealed that
exposure to low-dose rate radiation equivalent to three to five times greater than the
average natural background radiation does not significantly raise health risks.
Backend Management in Nuclear Fuel Cycle
 We developed a salt particle collection device in order to prevent stress corrosion
cracking (SCC) in inner metal canisters caused by salinity intrusion from the concrete
cask’s cooling duct. This concrete cask is considered to be promising as a next-generation
storage method for spent nuclear fuel.
 As a part of our efforts to facilitate the low-level radioactive waste disposal, wedeveloped a model for assessing the long-term swelling behavior for bentonite materials,-6-an engineered barrier that prevents the leakage of radioactive substances, and examined
its validity in laboratory experiments.
Natural Disaster Countermeasures at Power Transmission and Distribution Facilities
 We developed new methods for determining snow accretion based on snow quality bycollating and analyzing observational data on snow accretion on power lines and climate
data at the site, collected with cooperation from power companies, to improve ourunderstanding of snow damage at electric power transmission and distribution facilities.
 We improved the Risk Assessment and Management system for Power lifeline (RAMP)
used for distribution facilities after the Great East Japan Earthquake based on damage
suffered in the earthquake and damage estimated from the 2011 Typhoon No. 12, andenhanced the estimation accuracy of seismic intensity distribution and wash-out damageof utility poles during typhoons.
 We have developed new modules that can evaluate the lightning risk of power
distribution systems and wind power generation systems. based on data such as lightning
frequency in each area and enhanced the functions of the Lightning Risk Assessment
Program (LIRAP).
Global Warming Projections and Impact Assessment
 We improved the setting methods for sea ice and sea surface temperature and methods forcalculating soil and lake surface temperatures in the Numerical Weather Forecasting andAnalysis System (NuWFAS) that CRIEPI developed. We also calculated the averagewind speed during typhoons throughout Japan for a recurrence interval equivalent to50-300 years, which was needed to the wind-resistant design of power transmission
facilities.
 We confirmed that temperatures would decline and the climate would recover in the
future through the analysis of a scenario, in which emissions are cut over the low term
while increase at one point in the near future, using the institute’s Simple climate model
to Examine Emission Pathways Leading to Updated Scenarios (SEEPLUS).
(2) Further Improvement of Facility Operations and Maintenance Technologies
We addressed technical development issues in order to raise the sophistication of ourtechnologies for operating and maintaining electric power facilities and continue to stably
supply electric power.
In particular, we continued with research development necessary to continue operating
light water reactors and the development of operations and maintenance technologies related
to thermal and hydro power facilities and power transfer equipments such as powertransmission and distribution facilities.

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Development of Plant Life Management Technology for Light Water Reactors
 We characterized the microstructural changes in neutron-irradiated steels using atom
probe tomography to identify the mechanisms of the effect of irradiation temperature on
the embrittlement of reactor pressure vessel steels and the crack growth behavior of stresscorrosion cracking (SCC) in components and pipings.
 We developed a software (FALSET) that was able to predict the pipe wall thinning ratecaused by flow acceleration corrosion and liquid droplet impingement erosion. It also
predicts the remaining life of pipes for wall thinning management.
 In order to develop to assess the mechanical strength of electric power and control cables,
we developed a model to assess insulating material deterioration when they are subjected
to radiation and thermal stresses, taking into account the concentration distribution of theantioxidants in the insulating materials.
Operation and Maintenance Support for Electric Power Generating Facilities
 We developed a method to assess the safety of gravity dams during earthquakes by using
nonlinear finite element analysis, which is able to analyze the damages at the dams andtheir foundations.
 We developed movable current and topography measuring systems in dam reservoirs athydro electric plants, as well as a real time forecast system for river flooding using
simultaneous forecast of weather and floods, in order to support the optimal operation ofdams and flooding countermeasures.
 We conducted internal pressure creep tests of high chromium steels using longitudinalwelded specimens of both an actual piping and a tube sizes to examine the strength of thewelded parts of the materials in thermal power plants. Based on the test results and creep
analysis results obtained using a finite element method, we developed a creep life
assessment model of the materials.
Operation and Maintenance Support for Electric Power Transmission and Distribution
Facilities
 In order to support the rational operation and maintenance of aged power transformers,
we developed a method of diagnosing thermal deterioration in insulating paper used in
power transformers based on the thermal history calculated from their load histories, aswell as a method to diagnose internal winding wire abnormalities of power transformers
using frequency response analysis (FRA).
 We are currently developing a cleaning procedure that will serve as a simple removal
technique that can be used on-site to process large-scale transformers contaminated with
PCBs (heat compulsion circulating cleaning). Tests carried out with electric powercompanies indicated that this method could efficiently remove PCBs.

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(3) Development of a Supply/Demand Infrastructure for Next-generation Electric PowerCRIEPI endeavored to enhance the efficiency of power supply and power use, reinforce
the power supply/demand foundation that enables energy security, and worked to develop
prospective technology that would conserve energy and reduce carbon emissions.
In particular, we pursued the development of next-generation thermal power generation
technology with the aim of effectively using low-quality resources and enhancing theefficiency of power generation. We developed technology for next-generation power grids tofacilitate the use of renewable energy such as solar power in power systems, and also
developed technology for the efficient use of energy, such as high-efficiency heat pumps
low-loss power semiconductors.
Next-generation Thermal Power Technologies
 As part of our supporting research on the operation of IGCC (Integrated coal Gasification
Combined Cycle) demonstration plant, the three-dimensional numerical simulation of thegasifier was applied to a various operating conditions, such as coal blending, to determine
its relevance.
 To diversify the types of fuel used in pulverized coal-fired boilers, we conducted the
combustion experiments of blends of high-moisture sub-bituminous coal and bituminous
coal using a burner for bituminous coal, and found that the blend rate of sub-bituminous
coal could be raised up to 75% by adjusting air injection conditions of a burner.
 As the development of the highly efficient IGCC systems with CO2 capture using O2-CO2
blown gasifiers that we have proposed, gasification experiments demonstrated the effectthat CO2 injection has in raising the gasification performance. This makes it possible topredict the gasification characteristics of actual equipment through numerical simulation.
Next-generation Grid Technologies
 In order to address the issue of voltage rise along distribution lines when high-volume
distributed power supply, such as solar power and wind power, are introduced, wedeveloped analytical tools able to elucidate phenomenon and evaluate methods of curbing
voltage in distribution systems that power companies can use on-site.
 We developed a communications network that makes it possible to develop
high-performance power system protection and control systems at low cost and thatcombines the ease of connection characteristic of all-purpose IP (Internet protocol)
technology with real-time performance and reliability.
 We evaluated a load control method for use with air conditioning and lighting that is
effective at demand response, intended to curb peak demand, and demonstrated that itusers are receptive to reductions in lighting in common areas in office buildings, and that
this also has a significant effect in load reduction.

-9-Electrification and Energy Conservation Technologies
 Using the modified two-stage cascade heating cycle, we collaborated with an electric
power company and a manufacturer to develop a CO2 heat pump for a central heating
system for cold districts that can heat water to 70℃ even when it is －20℃ outside.
 We succeeded in growing SiC epitaxial films with a sufficient thickness and a low
current-conduction loss applicable to high-voltage systems equivalent to 13 kV voltage
lines as part of the development of high-performance SiC insulated gate bipolartransistors (SiC-IGBT).
 We succeeded in separating the effects of operation pattern and aging time on thecapacity decrease of lithium-ion batteries. This result suggests a possibility of utilizing a
constant current charge-discharge test to evaluate the degradation of lithium-ion batteries.
2. Basic Technology Subjects
We designated 36 basic technology subjects in fiscal 2011 to guide our research.
Capitalizing on the strengths and specialized skills of the eight laboratories with specificresearch fields, we pursued research to maintain, sustain and develop technology that helps toresolve issues facing the electric power industry on the front lines, and as well as
groundbreaking technology leading to new research breakthroughs. Moreover, we helped
resolve issues that emerged as a result of the earthquake and the accident at the Fukushima
Daiichi Nuclear Power Plant rapidly and accurately. Our main achievements are outlined
below.
Socio-economic Research Center:
The Socio-economic Research Center conducted multi-faceted analysis and evaluation,such as technical assessments and economic analysis, on changes in the society affecting thepower industry and policy trends related to the industry as well as their impact on business
management in order to contribute to the efficient and stable power supply.
 Through cost structure analysis using the financial data of electric power utilities, wedemonstrated that the cost savings of vertical integration (cost-savings effect compared tohaving each power transmission and distribution company carry out these functionsindividually) amounts to about 30% of current costs on average for the nine utilities.
 We analyzed the legal issues posed by compensation for damage in the Fukushima
Daiichi Nuclear Power Plant accident and their factors, and laid out the direction for
institutional reform and the available options.
System Engineering Research Laboratory:
The System Engineering Research Laboratory conducted research on planning, operation,
control and analysis methods for electric power transmission systems, distribution systems
and information and communication systems to ensure a stable supply of electricity. The
laboratory also pursued research on the development, testing and assessment of customer- 10 -

service technologies that promote the efficient use of electricity.
 In order to support relay settings and to verify coordination between protection relays
through the spread of dispersed generation, we improved the method ever developed for
estimating coordination between protection relays, which enables us to verify
coordination between short-circuit protection relays or between ground fault protection
relays in distribution systems.
 In accordance with on-site needs, we developed a method in which multiple operatingprocedures with a minimum unrestored total loads and number of switching operations
are grouped according to the differences in restoration policy in order to support
pre-examination of restoration operations in the event of an accident in the
sub-transmission system.
Nuclear Technology Research Laboratory:
The laboratory worked to address urgent issues posed by the Fukushima Daiichi Nuclear
Power Plant accident, and also began researches on long-term issues related to stabilization of
the fuel debris. In addition, the laboratory pursued fundamental researches related to
improving the safety and supporting the maintenance of existing light water reactors,
technologies for fuel cycles for both light water and fast reactor, and measures to prevent
human error.
 The laboratory evaluated the adsorption performance of cesium using a zeolite, as anurgent issue in cleaning up the stagnant contaminated water after the Fukushima Daiichi
Nuclear Power Plant accident. This contributed to the development of technology for theestablishment and stable operation of the treatment systems.
 In order to evaluate the safety of existing light water reactors, we analyzed equipment
failures happened in nuclear power plants in Japan and developed a method for
calculating the failure rate in cases of common cause failures in which multiple
equipments malfunction at the same time due to the same cause, which has a major
impact on probabilistic risk analysis.
Civil Engineering Research Laboratory:
This laboratory conducted fundamental research on geosphere science, earthquake
engineering, structural engineering and fluid dynamics needed to civil engineering technology
and natural disaster measures for power facilities, as well as to backend management in
nuclear fuel cycle.
 The laboratory analyzed the viscosity of erupted magma based on data both within Japanand overseas, and quantitatively determined the relationship between viscosity anderuption potential in order to assess the possibility of large-scale pyroclastic eruptions
from volcanoes.
 In order to assess the structural soundness of underground reinforced concrete structures- 11 -

in thermal and nuclear power plants that have experienced damages by earthquakes, wedeveloped estimation methods for the maximum deformation response of members using
residual flexural crack width and for the corrosion progress of reinforcing steel. We also
demonstrated the recovery effect of structural performance as a result of epoxy resin
repairs to cracked areas.
Environmental Science Research Laboratory:
The laboratory worked to promote basic research on atmosphere, river, coastal and marine
environments, as well as on biology, chemistry and biotechnology for the construction andstable operation of electric power facilities, the establishment of a low-carbon society, andreduction in various environmental risks associated with the electric power industry.
 With the aim of supporting stable operations at coastal power plants, the laboratory havedeveloped an acoustic monitoring system and a molecular-based quantitative detection
method using genetic information to assess population dynamics of moon jellyfish andfouling organism larvae, such as barnacles, respectively, which influx and clog watercooling systems of the power plants.
 In order to appropriately manage the selenium contained in the desulfurized waste waterfrom coal-fired power plants, the laboratory developed and tested the selenium monitor
that automatically measure the concentration in wastewater, and also confirmed theeffectiveness of the biological wastewater treatment method for selenium at thelaboratory level using microbes that was developed by CRIEPI.
Electric Power Engineering Research Laboratory:
The Electric Power Engineering Research Laboratory was engaged in maintaining andadvancing fundamental technologies related to electric power transmission and distribution
facilities, including electrical insulation, lighting protection and high power testing
technologies. The laboratory also conducted fundamental research on next-generation electric
power equipment, laser application and arc plasma application, and power electronics
technology.
 We have published "Application guide for transmission Line surge arresters" and "Guide
to lightning protection design of power stations, substations and undergroundtransmission lines (rev. 2011)" in cooperation with electric power companies. With theseguides and other guides on lightning protection design which have been alreadypublished, we have established practical methods of lightning protection design for entire
power systems.
 We developed a non-contact method for measuring the concentration distribution ofmultiple chemical elements, an indicator for degradation caused by salt damage toconcrete structures, in a short period at the same time using laser breakdown
spectroscopy.

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Energy Engineering Research Laboratory:
The laboratory worked to develop technology to manage the hot gas path components ofgas turbines, develop a highly efficient, clean low-cost thermal power generation technology,
such as establishing measuring techniques for trace components in exhaust gas, and develop
fundamental technology related to systems and equipment used by the demand side at hightemperatures.
 To improve film cooling performance of gas turbine blades, effects of internal rib
orientations and film cooling hole geometries on film cooling effectiveness and heattransfer coefficient were investigated. The results showed the innovation of rib and holegeometry strongly improves film cooling performance of turbine blades. The laboratory
also developed the method for measuring gaseous boron and selenium contained in theflue gas of coal combustion gas using absorbing solutions and proposed this method as astandard to JIS for boron and to ISO for selenium.
 The laboratory also developed the method for measuring gaseous boron and selenium
contained in the flue gas of coal combustion gas using absorbing solutions and proposed
this method as a standard to JIS for boron and to ISO for selenium.
Materials Science Research Laboratory:
The laboratory conducted research on various material-related problems faced by theelectric power industry. These range from identification of damage and aging mechanisms ofstructural materials in nuclear power and thermal power plants, improvements in life
prediction, nondestructive evaluation, and development of new materials used for energy
saving device.
 In order to take a measurement on the corrosion problems of metallic structures ofFukushima Daiichi nuclear power plant induced with sea water injection, we evaluatedthe corrosion rate of materials in chloride solution. As a result, we proposed a countermeasures on the corrosion problems in spent nuclear fuel storage pool.
 We demonstrated that nondestructive tests using the ultrasonic wave phased array method
could be applied to detect fatigue cracks in headers and tube joints of open rack
vaporizers, a key supply device for LNG thermal fuel.

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3. Research Promotion(1) Promotion of Initiatives for research to support the recovery from the disasterthroughout CRIEPI A Disaster Support Research Manager was assigned to the Head Office Planning Groupto coordinate with the electric power industry and the government on earthquake-related
research, such as the accident at the Fukushima Daiichi Nuclear Power Plant. Special
teams were formed throughout CRIEPI integrating all of its resources under thesupervision of the executive officer in charge to rapidly respond to a wide range ofrequests.
 In particular, we utilized the knowledge built up throughout our history to produce highly
effective results and help resolve issues on the frontlines in response to urgent requests
and issues, including technical support for a system for the disposal of radioactive
standing water, support in ascertaining conditions and restoring the environment withradiation measurements in contaminated areas, and diversified assessment of radioactive
substances in the atmosphere, ocean and underground water.
 We considered a research promotion system to be adopted from fiscal 2012 for “Research
to Enhance Safety” and “Research Supporting Preservation” at light water reactors,
essential in operating nuclear power reactors safely and reliably. This is a step toward
strengthening programs to apply the knowledge that CRIEPI has built up thus far to thefrontlines in a timely and accurate manner.
(2) Exercising comprehensive strengths
 We exercised our comprehensive strengths by promoting cross-cutting research bycoordinating with the eight professional research institutes in our search for resolutions to
issues related to the earthquake. In addition, we held workshops on various risks that could
arise in the electric power industry in light of the risks that emerged as a result of theearthquake, and studied and analyzed risks and the phenomena that could result from theserisks. Based on these results, the electric power industry and CRIEPI identified the issues
that should be researched further in the future.
 We pursued research in affiliation with domestic and overseas university and research
institutions with impressive knowledge in specific fields (the Institute for Transuranium
Elements [ITU] of the European Commission, the Japan Atomic Energy Agency, and theMarine Ecology Research Institute, among others). Such collaboration will enable scientificknowledge to mutually complement each other and to sustainably improve fundamental
research strengths. In particular, we entered into joint research agreements with the ElectricPower Research Institute (EPRI), USA and Électricité de France (EdF), France with aim ofstrengthening relationships with foreign institutions to identify irradiation embrittlement
mechanisms in the pressure vessels of aged light water reactors.

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(3) Promotion of funded research Applying CRIEPI’s fundamental research skills, we proactively engaged in research that
met the needs of the electric power industry, and also received government funding for
research on issues related to the electric power industry.
Table 3 shows the main research projects for which CRIEPI received government
funding.
 We also facilitated the projects of the PD Center, which gives certification exams forexperts of ultrasonic inspection working with nuclear power plant components, as well as
the projects of the High Power Testing Laboratory, which performs short-circuit tests onelectric power equipment.
(4) Systematic Introduction and Upgrades of Large-scale Research Facilities
 In light of conditions following the earthquake, we rigorously selected, introduced andupgraded large-scale research facilities, which are indispensable in supporting thetechnological foundation of the electric power industry and supporting and enhance
CRIEPI’s foundational technical strengths.
 We introduced a “carbon dioxide removal atmosphere air-tight room” to use in assessing
the long-term soundness of cementitious materials used in the low-level radioactive waste
disposal and a “field observation system of a steel transmission tower” to measurereaction of the tower in a range of environments such as wind, earthquakes, and snow
accretion.
 We updated the “impulse current generator” in the High Power Testing Facility, used toperform short-circuit test on electric power equipment.
 Moreover, we continued construction on the Facility for Experiments on Advanced
Carbonizing Gasification of Low-grade Resources, used to improve low-grade resources
such as brown coal into high-grade fuel through carbonizing gasification. We also began
introducing strong shake generator, which enable tests to be conducted at the world’s
highest accelerations, and tsunami physical simulator, which can recreate thecharacteristics of high-speed and sustained tsunami to evaluate the force of impact on
structures, as well as “the Test Facility to Assess Insulation Deterioration in Aged CV
Cable Systems” and “Heat Pump Development Testing Facility.”(5) Management and Application of Intellectual Property
 We continued to make intellectual property more visible by assessing value with a focus
on outcome and publishing The Intellectual Property Report. We have nearly completed
digitizing and microfilming research reports issued since CRIEPI’s founding andexpanded our download services for disclosed materials. The number of downloads by
various organizations and members of the general public both within Japan and overseas
amounted to about 110,000 a year, contributing to the broad use of research results.

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

We raised the quality of patent applications by strengthening the Center for Intellectual
Property & Technology Licensing’s function supporting patent searches and utilizing
invention consultation meetings.
Table 4 shows the number of patents and software license applications we submitted andthe number registered.

 We not only utilized the intellectual property we have built up to promptly resolve issues inthe electric power industry, such as research to support the recovery from thedisaster, but also worked to spread technology to businessmen working on the frontlines
of society through technology exchange courses and technology lectures. Moreover, we
actively introduced patents and software through forums and seminars hosted by CRIEPI,
external exhibits and technology transfer organizations.
Table 5 shows the number of patent licenses and software licenses that CRIEPI authorized.
 We capitalized on our strengths as an academic research organization to participate innational and academic committees, thus contributing to the establishment of specifications,standards and technical standards for the energy and environment.
Table 6 shows contributions to the formation of major codes, standards and technicalguides.
(6) Steady Implementation of Fundamental Activities
We steadily carried out the following basic activities to promote a wide range of research
activities and effectively disseminate information on research activities and results.
[1] Collection of Literature, Materials and Statistics
We secured and maintained a wide range of literature, materials and statistics andcollected high-quality information by, for example, collecting information utilizing ourposition as an academic research institute and augmenting the collections at CRIEPI’s various
libraries. The compiled information was used in research activities, and also given back tosociety at large through publications such as research reports.
[2] Establishment and Use of Mainframe
We used the institute’s mainframe to conduct research effectively and generate a wide
range of results. Moreover, we endeavored to ensure the wide use of software, such as themathematic simulation program that we developed, by the electric power industry. We
examined detailed specifications and selected a model as we upgrade our mainframe in fiscal
2012 in order to carry out more sophisticated research using climate analysis and material
analysis.

- 16 -

[3] Issuance of Publications
We gathered research reports and public relations media in line with the progress made on
our research and disclosed information on our research activities and results effectively. We
disclosed this information to society at large via our website.

- 17 -

Table 1: Number of Reports
Research reports, etc.

Funded research

Total

Socioeconomics

45

4

49

Environment

65

21

86

Customer energy services

34

5

39

Power delivery

71

25

96

Nuclear power generation

88

31

119

Fossil fuel power generation

36

10

46

New energy

9

4

13

Information & communication

36

6

42

62

19

81

Advanced basic technologies

18

6

24

Total

464

131

595

(Number in previous fiscal year)

405

157

562

Construction and maintenance ofelectric power facilities

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

150 (33)

Environment

198 (52)

Customer energy services

82 (15)

Power delivery

145 (40)

Nuclear power generation

300 (76)

Fossil fuel power generation

88 (43)New energy

24 (3)

Information & communication

41(13)

Construction and maintenance of
178 (40)
electric power facilities
Advanced basic technologies

195 (67)

others

6 (1)

Total

1,407 (383)(Number in previous fiscal year)

1,605 (444)- 18 -

Table 3: Major Funded Researches from the National Government and Others

Research Title

Consigner

Survey of geologic disposal technology (Joint Technology

METI

Study on Geologic Disposal: Development of Advanced

CRIEPI’s name for subject
Processing of high-level
radioactive waste

Boring Technology)
Survey of geologic disposal technology (Joint Technology

METI

Study on Geologic Disposal: Development of Advanced

Processing of high-level
radioactive waste

Techniques for Assessment of Groundwater Travel Time in
Bedrock)
Study on technology for storage of recycled fuel resources

METI

Transport and Storage(experiments on long-term soundness of intermediate storage

Nuclear and Industrial

Technology for Spentfacilities)

Safety Agency

Nuclear Fuel

Research development on engineering technical demonstration of

MEXT

Advanced Nuclear Fuel
Cycle

metal fuel cycle for practical application
Development of analysis techniques using computer simulation of

MEXT

Advanced Nuclear Fuel
Cycle

morphological evolution for nuclear fuelCommission for Concentration Calculations of Artificial Radioactive

MILT

Assessment of Radioactive

Nuclides in Ocean using Ocean Circulation Model

Meteorological ResearchMaterial Diffusion in

InstituteEnvironment and its
Remediation

Evaluation of Validity and Predictability of Air Quality Modeling forMOE

environment

Urban PM2.5 in Japan
Development of technology for next-generation high-performanceelectricity

storage

Atmospheric and Marine

systemforautos/Fundamental

NEDO

technology

Lithium Secondary Battery
with Reliable Safety

development/Research and development of fundamental technology
for next-generation high-performance secondary batteries for autos
Innovative zero-emission coal gasification power generation project,

NEDO

Thermal Power Generation
Systems with CO2 Capture

fundamental research project on innovative gasification technology,
development of high efficiency oxy-fuel IGCC
New-material synthesis by thin-film growth technique, and growth ofJapan science andAdvanced Functional

high-quality bulk single-crystals of iron-pnictide superconductors

Technology Agency

Materials

Examination of microbial impact at Horonobe Underground

Japan Atomic Energy

Processing of high-level

Agencyradioactive waste

JNES

Nuclear power materials

Study on downstream effects relating to sump screen clogging issues- 19 -

Table 4: Number of applications and registrations of patent, and software in FY 2011
PatentSoftware Registration

Application

Registration

Socioeconomics

0

3

7

Environment

10

27

9

Customer energy services

11

5

10

Power delivery

16

20

22

Nuclear power generation

8

11

11

Fossil fuel power generation

17

19

8

New energy

9

5

6

Information & communication

5

10

5

5

14

13

Advanced basic technologies

16

56

1

Total

97

170

92

(Number in previous fiscal year)

133

120

85

Construction and maintenance ofelectric power facilities

Note: Number of patents held as of end-FY 2011: 606

Table 5: Number of licensed patents and licensed software applications in FY 2011

Total

(Number in previous
fiscal year)

Number of licensed patents

11

15

Number of licensed software applications

299

385

- 20 -

Table 6: Contribution to Formulation of Major Codes, Standards, and Technical
Guidelines in FY 2011

Code, Standard, Technical Guideline, etc.
The Guidelines to Protect Hot Spring Resources (in relation to geothermal

Organizations and Groups Concerned
Ministry of the Environment

power generation)
ISO/IEC 29155-1: Framework for IT Project Performance Benchmarking,Information Processing Society of Japan,
International Organization forPart 1: Concepts and Definitions: 2011

Standardization/ International Electrotechnical Commission(ISO/IEC)
AESJ-SC-RK004: The Tsunami Probabilistic Risk Assessment of Nuclear

Atomic Energy Society of Japan

Power Plants: 2011
AESJ-SC-F019: Facility Inspection Method for Processing Facilities

Atomic Energy Society of Japan

Disposing of Waste Below the Generally-Used Depth: 2010 (issued in May
2011)
Specifications for Thermal Power Facilities for Power Generation: Basic

The Japan Society of Mechanical Engineers

Regulations (2011 edition)
JIS C 2143-1: 2011 Electrical insulating materials: Properties of thermal

The Institute of Electrical Engineers of Japan

endurance; Part 1: Aging procedures and evaluation of test results

Japanese Standards Association

JIS C 2143-2: 2011 Electrical insulating materials −Thermal endurance
properties; Part 2: Determination of thermal endurance properties ofelectrical insulating materials −Choice oftest criteria
JIS K 0105 Methods for determination of fluorine compounds in flue gas

Japan Environment Measurement andJIS K 0107 Methods for determination of hydrogen chloride in flue gas

Chemical Analysis Association(revised in February 2012)
JEAC4216-2011 Test method for determination of reference temperature T0of ferritic steels- 21 -

Japan Electric Association

II. Administration
1. Further cost-cutting and efficient use of assets based on changes in revenue andexpenditures

We reviewed our initial plan across operations in light of changes in revenue andexpenditures, taking into account the need to maintain high-quality research and ensure
the safety of operations. Based on this, we revised the plan and put off non-urgent
programs until future fiscal years as part of our efforts to concentrate resources in priority
areas. Moreover, we ensured that our subcontracting was competitive and cultivated new
business partners, to cut operating costs.

In addition to a 10% cut in executive salaries, we took steps to reduce managerial
employees’ annual salaries as we curbed salaries across the ranks of employees. CRIEPI
also decided to increase the cut to executive salaries to 20% in fiscal 2012, and also
reduce annual salaries for managerial employees by a certain percentage when salaries
come up for review. Moreover, we revised medium- to long-term measures affecting theretirement system, effectively combining pay reductions with ongoing restrictive
measures.



We continued to consolidate and rebuild our research bases to lower operating costs,
fixed asset taxes and other costs in the future, while monitoring revenue and expenditures.
Moreover, we began a land survey in preparation for a partial sale of the Komae area inorder to raise money to upgrade research bases and new research development.

In order to reduce fixed management costs such as maintenance costs and fixed asset
taxes, we surveyed idle research facilities to determine whether they would be used on an
ongoing basis, and sought to use and reorganize assets effectively by changing their use
or retiring them.



We conserved power, including in research departments, in light of the pressures on
power supply and demand. As a result, we succeeded in cutting electricity use by morethan 25%, which is the target for maximum electric power.

2. Reconstruction of research bases for new research development


We assigned the person in charge of the reconstruction of research bases to the Head
Office Planning Group and worked together to flesh out the details for the concept behindthe base upgrade with the aim of utilizing our research bases in Yokosuka, Abiko and- 22 -

Komae more effectively as we expand our research endeavors and smoothly rebuild our
research bases.
In the Yokosuka region, we continued the work started in fiscal 2010 to develop
infrastructure such as power sources, and also began developing newly acquired land andbegan construction work on part of the new research facility (laboratory to carry out
experiments on high-performance carbonizing gasification of low-grade resources). In
addition, we devised a plan to transfer and consolidate laboratories from the Komae
region, such as the radiation safety facility, materials research facility, and thermal
hydraulics research facility.



We moved the Socio-economic Research Center from the Komae region to Otemachi
with the aim of encouraging further collaboration with external organizations, including
the electric power industry, increasing opportunities for intellectual exchanging, andpromptly meeting diverse needs.

3. Appropriate response to reformation of public interest corporation systemWe carried out the designated procedures for the transfer to the status of a generalincorporated foundation, such as devising articles of incorporation and a public interest
expenditures plan and received authorization for the transfer from the prime minister infiscal 2011 so that we can transition to the new status from fiscal 2012 as planned.

We revised executive officer regulations and other rules so that they more closely
conform to the contemporary standards. We also considered revising rules for executive
compensation to ensure that business is operated appropriately after the transition.

4. Educating and utilizing personnel as the key to organization’s sustainable
development
We pursued initiatives centered on personal support in order to maintain and enhance
employees’ motivation. Specifically, the head office’s human resources department took acentral role in carrying out individual interviews with each employee and responding in a
detailed manner to identify each employees’ research and job interests and future goals
and desires so that the right employee can be assigned to the right position.



We also considered a new framework for special contract researchers as a form of
employment with a fixed term as a way of securing research staff who can contribute to awide range of research efforts adapted to the changing face of the electric power industry
and society. Specifically, we examined a system in which the employment contract period- 23 -

can be set flexibly for a period as long as five years and compensation and benefits can bemade equivalent to those of a full-time employee.
5. Promoting information transmission and public relations activities to raise CRIEPI’svalue

We endeavored to accurately ascertain external conditions, such as trends in the electric
power industry and society after the earthquake, and actively sought stakeholders’requests and views of CRIEPI by exchanging views with the electric power industry andmass media.



We disseminated information on the expertise and research results across a wide range of
specialized fields that we have gained thus far, through various public relations media andlectures in a timely manner. In particular, we proactively responded to interviews,
inquiries and requests for lectures on earthquakes and tsunami, the diffusion ofradioactive substances, the effect of low-dose radiation and the stable supply of electricity
since the earthquake.

In place of “the CRIEPI Forum” typically held every year, we held a forum on restoration
and recovery efforts following the earthquake in November, at which we introduced someof the institute’s activities supporting the response to the nuclear power plant accident.

6. Establishing a system to ensure optimal operations
 We established an internal control office in June in order to ensure more appropriate andefficient operations, and set up a more effective internal control system.
 An outline of our decisions on the establishment of systems to ensure that managements’
job performance is in line with laws and articles of incorporation, as stipulated in Article 10,
Clause 2, Number 2 of the Establishment Law* is provided below.
Note: Act on the Revision, etc. of Related Acts that Accompany the Enforcement of the Act on General
Incorporated Association and General Incorporated Foundation and the Act on the Authorization, etc. of
Public-interest Incorporated Associations and Public-interest Incorporated Foundation
Basic Principles on Internal Controls
CRIEPI has established the following basic principles for its internal control system in order to ensure that its
operations are managed 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 and make decisions on important issues related to the performance of operations inaccordance with laws and articles of incorporation as well as decisions by the Board of Councillors. In
addition, Vice Presidents’ job performance will be supervised.

- 24 -



A committee concerned with management and research strategies and consisting of Vice Presidents andother 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 andmultidisciplinary 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 ininternal regulations, and efforts made to ensure that Vice President and employees perform their jobs
appropriately and efficiently.

Minutes for important committees such as the Board of Councillors, Board of Directors andManagement Committee and other information related to Vice Presidents’ execution of professional
duties will be appropriately prepared, saved and managed in accordance with the articles ofincorporation 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 witha 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 that important 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 theManagement Committee and the necessary countermeasures will be discussed as required.
In order to prepare for emergency disasters, internal regulations on the support organization andinformation 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 ofcompliance and report the results 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 suchas 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 notreceive instructions or guidance from executives, and the General Auditor’s wishes will be respected asregards 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 when requested to do so.

- 25 -

III. Workforce
We enhanced the capacity of current staff and assigned staff to appropriate positions inline with our basic policy to reduce the current staff of about 840 to an equilibrium point of
about 800 by the end of fiscal 2015.
The workforce as of March 31, 2012, was as follows.
Item

Numbers

Percentage distribution (%)

736*1

88.1

1. Research〔100.0〕[Breakdown](1) Electricity

116

15.8

(2) Civil engineering and construction

92

12.5

(3) Mechanical

100

13.6

(4) Chemistry

71

9.6

(5) Biology

61

8.3

(6) Nuclear engineering

47

6.4

(7) Environmental science

45

6.1

(8) Information & communication

41

5.5

(9)Socioeconomics

47

6.4

(10) Research support & management

116

15.8

99

11.9

835*2

100

2. Office work
Total
Note*1 This includes 39 Visiting Researchers.
Note*2 There were 845 employees as of April 1, 2011.

- 26 -

IV. Meetings Held
1. Board of Directors
Date held

AgendaJune 9, 2011

1.

Approval of report on research activities in FY2010(No. 223)

2.

Approval of report on settlement of accounts in FY2010

3.

Approval of changes to maximum loan amount4.

Approval of method for selection of first councillors
following transition to status as a new general incorporated
foundation

June 9, 20111.

Mutual election of President and Executive Vice President(No. 224)

2.

Presentation of retirement bonus on retirement of executive
officers

August 17, 2011 1.
(No. 225)

Election of Councillors

2.

Committee for election of councillors

3.

Recommendations for first councillors following transition to
status as a new general incorporated foundation

October 28, 2011 1. Donations establishment of administrative detailed regulations(No. 226)

2. Decrease in ongoing donations in FY2011 from Tohoku
Electric Power Company and Tokyo Electric Power Company
3. Changes to FY2011 research plans and statement of budget
4. “Changes to Articles of Incorporation (plan)” and“Memorandum on Replacement of Agreement Including
Donations”
5. Changes to Articles of Incorporation (plan), establishment ofadministrative detailed regulations
6. “Request for Authorization of Transition” and FY2011
statement of budget (P&L basis)

March 8, 2012

1.

Approval of Research Plan in FY2012(No. 227)

2.

Approval of statement of budget in FY2012 and statement ofbudget in FY2012 (P&L basis)3.

Selection of councillors- 27 -

2. Board of Councillors
Date held

AgendaMay 20, 2011

1.

Reports on research activities in FY2010(No. 37)

2.

Reports on settlement of accounts in FY2010

3.

Changes to maximum loan amount4.

Selection of vice presidents and general auditors when terms
have expired

5.

Method for selection of first councillors following transition
to status as a new general incorporated foundation

August 17, 2011

1.

Election of vice presidents and general auditors(No. 38)

2.

Committee for election of councillors

3.

Recommendations for first councillors following transition to
status as a new general incorporated foundation

October 21, 2011

1.

Donations, establishment of administrative instructions(No.39)2.

Decrease in ongoing donations in FY2011 from Tohoku
Electric Power Company and Tokyo Electric Power Company

3.

Changes to FY2011 research plans and statement of budget

4.

“Changes to Articles of Incorporation (plan)” and“Memorandum on Replacement of Agreement Including
Donations”

5.

Changes to Articles of Incorporation (plan), establishment ofadministrative detailed regulations

6.

“Request for Authorization of Transition” and FY2011
statement of budget (P&L basis)

February 17, 20121.

Research plans in FY2012 (Plan)(No. 40)

2.

Statement of budget in FY2012 (Plan) and statement ofbudget in FY2012 (P&L basis, Plan)- 28 -

Settlement of Accounts- 29 -

Outline of Settlement of Accounts
The business scale in fiscal 2011 was 31.04 billion yen, 1.22 billion yen less thanbudgeted. Net property at the end of fiscal 2011 was 37.55 billion yen, 200 million yen higher
than the end of the previous fiscal year.
1. Financial statements(1) Assets condition
Total assets amounted to 50.64 billion yen, 1.11 billion yen higher compared to the end of theprevious fiscal year. This increase in assets is attributable to a 1.09 billion yen in cash anddeposits, 3.45 billion yen in newly acquired fixed assets for research, and 3.30 billion yen inreserves for special assets to establish a research base in Yokosuka. At the same time, assets
decreased due to 5.73 billion yen depreciation and 700 million yen reduction in special assets.
(2) Liabilities condition
Total liabilities amounted to 13.08 billion yen, up 900 million yen compared to the end of
the previous fiscal year. This was due to a 1.19 billion yen rise in accrued liabilities resulting
from an increase in the acquisition of research facilities at the end of the fiscal year comparedto the previous fiscal year.
(3) Net assets condition
The year-end balance of net assets was 37.55 billion yen, including 36.36 billion yen ingeneral net assets and 1.19 billion yen in designated net assets.
2. New assets increase/decrease calculation sheet(1) Changes in general net assets
 Ordinary revenue was 30.08 billion yen, down 470 million yen over the previous fiscal
year. Current donation fell 100 million yen over the previous fiscal year to 27.27 billion
yen as a result of a decrease in current donation from Tohoku Electric Power Company
and Tokyo Electric Power Company, which suffered the negative impact of the Great
East Japan Earthquake. Revenue from research projects funded by the government fell
250 million yen to 1.79 billion yen.
 Ordinary expenditure fell 1.6 billion yen compared to the previous fiscal year to 29.73
billion yen. This can be attributed to reductions in expenses for commissions since
CRIEPI revised its research plans to adapt to lower revenue as a result of the earthquakeand other factors.
 As a result, the change in net assets returned to positive levels from a net decrease of- 30 -

780 million yen in the previous fiscal year to an increase of 340 million yen.
 The non-recurring change was down 680 million yen over the previous fiscal year to 9
million yen. This was due to the decision to put off sales in the current fiscal year, incontrast to the sale of public housing sites in the previous fiscal year.
As a result, the current change in general net assets returned to positive levels from a net
decrease of 80 million yen in the previous fiscal year to a net increase of 350 million yen
in the current fiscal year.
(2) Change in designated net assets
The change in designated assets was a net decrease of 140 million yen, down 750
million yen over the previous fiscal year. This was primarily due to significant revenue
from subsidies received by the government and others and depreciation of special assets
funded by designated net assets.
3. Statement of revenues and expenditures
Revenues and expenditures were revised as a result of a decrease in revenue fromdonations and changes in research plans due to the impact of the Great East Japan Earthquake.
The Statement of Revenues and Expenses was corrected with the approval of an extraordinary
board of directors meeting (held on October 28, 2011).
(1) Balance of business activities
 Revenue from business activities was 29.83 billion yen, 60 million yen higher than thebudget.
 Business activity expenditures amounted to 24.28 billion yen, 1.06 billion yen lower thanthe budget. Project expenditures were down 1.21 billion yen over the budget to 12.35
billion yen due to savings on expenses such as expenses for commissions, supplies
expenses, and light and fuel expenses.
(2) Investment activity balance Revenue from investment activity was 790 million lower than the budget at 10 million
yen.
 Expenditures on investment activities were 6.75 billion yen lower than the budget at 160
million yen. While reserves of specific assets to establish a research base in Yokosuka
increased, the acquisition of fixed assets decreased due to balances brought forward to thenext fiscal year.
(3) Financial activities
There were no income or expenditures related to financial activities.
As outlined above, current revenue totaled 30.63 billion yen, the carry-over from the previous- 31 -

fiscal year was 1.69 billion yen, and total revenue was 32.32 billion yen, down 50 million yen
compared to the budget. On the other hand, current expenditures were 31.04 million yen,down 1.22 billion yen over the budget. As a result, the balance to be carried over to the next
fiscal period was 1.28 billion yen.
4. Other
The discount rate used to calculate retirement benefit obligations was lowered from 2.0%
to 1.0% in accordance with regulations. As a result, retirement benefit obligations increased
3.82 billion yen compared to the end of the previous fiscal year.

- 32 -

I. Financial Statements
Balance Sheet
As of March 31, 2012
Current
fiscal year

Previous
fiscal year

(Unit: yen)
Increase/decrease

4,721,708,937

3,624,861,993

1,096,846,944

4,126,281

4,123,405

2,876

Account receivable

711,972,714

1,066,894,406

Suspense payable

66,226,736

26,318,513

Advance payment△ 354,921,692

9,404,455

9,058,530

39,908,223
345,925

5,513,439,123

4,731,256,847

782,182,276

7,000,000

7,000,000

07,000,000

7,000,000

0△ 20,353,561

Account
I. Assets section
1. Current assets
Cash and deposit
Securities

Total current assets
2. Fixed assets(1) Fundamental property
Cash and deposit
Total fundamental property(2) Special assets
Buildings

278,386,661

298,740,222

Ancillary buildings

3,941,228

5,254,937

Structures

3,359,079

4,132,523

1,217,615,256

1,525,809,040

Machine and equipment
Tools and furniture△ 1,313,709△ 773,444△ 308,193,784△ 2,820,155

36,921,060

39,741,215

Lump-sum depreciable assets

665,284

560,701

Intangible fixed asset
Special assets for retirement lump sum grants
benefits package allowance
Special assets for research facility acquiringallowance
Total special assets

772,436

578,776

3,435,900,000

3,435,900,000

07,900,000,000

5,300,000,000

2,600,000,000

12,877,561,004

10,610,717,414

2,266,843,590

Land

8,698,562,302

8,698,562,302

0

Building

9,375,268,070

9,724,652,268

Ancillary buildings

2,525,915,941

2,750,947,449

770,384,127

912,705,600△ 349,384,198

7,475,601,504

8,888,142,326

1,479,673,988

1,830,267,644

16,538,076

22,696,244

36,689,190

34,130,833

632,377,769

845,534,411

104,583
193,660(3) Other fixed assets

Structure
Machine and equipment
Tools and furniture
Rolling stock and vehicles
Lump-sum depreciable assets
Intangible fixed asset
Construction in process account△ 225,031,508△ 142,321,473△ 1,412,540,822△ 350,593,656△ 6,158,168

2,558,357△ 213,156,642

1,175,744,733

314,295,500

Long-term prepaid expenses

60,133,599

157,382,419

Total other fixed assets

32,246,889,299

34,179,316,996

Total fixed assets

45,131,450,303

44,797,034,410

Total assets

50,644,889,426

49,528,291,257

1,116,598,169

Accrued liability

4,137,465,605

2,937,704,713

1,199,760,892

Money entrusted

88,335,782

98,267,226

Advance receipt

1,352,356

3,430,466

Accrued bonus

359,000,000

396,000,000△ 9,931,444△ 2,078,110

861,449,233△ 97,248,820△ 1,932,427,697

334,415,893

II. Liability section
1. Current liability- 33 -△ 37,000,000

Account
Total current liability

Current
fiscal year

Previous
fiscal year

Increase/decrease

4,586,153,743

3,435,402,405

1,150,751,338

2. Fixed liabilities
Allowance for retirement benefits for directors
Accrued retirement benefits for employees

302,000,000

309,000,000

8,199,000,000

8,433,000,000

Total fixed liabilities

8,501,000,000

8,742,000,000

Total liabilities

13,087,153,743

12,177,402,405

Special benefits

496,031,710

554,354,915

Cash subsidy

556,185,259

712,393,988

142,369,208
1,194,586,177

1,341,927,302△ 7,000,000△ 234,000,000△ 241,000,000

909,751,338

III. Net assets section
1. Designated net assets

Cash contribution
Total designated net assets(Including appropriation to fundamental
property)(Including appropriation to special assets)((△ 58,323,205△ 156,208,729

75,178,399

7,000,000)(

1,187,586,177)(

7,000,000)(

1,334,927,302)(

67,190,809△ 147,341,125
0)△ 147,341,125)

2. General net assets(Including appropriation to fundamental
property)

(

0

)

(

0

)

(

0

)

(Including appropriation to special assets)(

8,254,074,827)(

5,839,890,112)(

2,414,184,715)

Total net assets
Total of liability and net assets

36,363,149,506

36,008,961,550

354,187,956

37,557,735,683

37,350,888,852

206,846,831

50,644,889,426

49,528,291,257

1,116,598,169- 34 -

Net Assets Increase/Decrease Calculation Sheet
From Aril 1 2011 to March 31 2012
Account

Current fiscal year

(Unit: yen)
Increase/decrease

Previous fiscal year

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

27,273,319,000
2,185,207,898)(

1,795,474,568

Funded research operating revenue
Other operating revenue([3] Other revenue
Interest received
Facility usage fee received
Miscellaneous revenue[4] Transfer from designated net assets
Total current revenue

389,733,330
125,038,944
7,505,683
88,650,006
28,883,255

27,377,598,000
2,656,575,986 )(2,048,775,266)(

607,800,720
233,416,168 )
13,055,313
93,962,393
126,398,462

499,390,249

293,414,97830,082,956,091

30,561,005,132(

Salary and benefit

9,848,071,443
7,555,291,324

Retirement benefit expenditure

1,238,540,416

1,361,052,460

1,054,239,703
18,043,295,781
1,429,855,378
411,064,778

1,047,340,072
19,264,442,805 )
1,820,446,373
444,415,073

Welfare expenditure(

Expenditure
Supplies expenses
Printed material expenses
Fuel, light, and water expenses
Expenses for commission

)

(

)

10,186,585,439
7,778,192,907(

560,085,523

651,287,539

5,317,031,970

6,070,417,727

814,989,270

723,845,270

1,445,649,445
300,475,526
95,659,307

1,317,834,906
189,414,624
103,036,518

634,977,439

764,566,108

89,437,589

128,875,073

Other expenditure

1,258,764,410

1,287,220,541

Depreciation allowance

5,685,305,146

5,763,083,053

Subtotal of project cost

27,891,367,224

29,451,028,244

Collaboration research contribution
Repair expenses
Rental rate
Tax and public charge
Travel and transport expenses
Communication and transportation
expenses)((

1,064,456,016
170,720,000
622,949,075
81,865,144
74,191,797

Board members’ salary
Salary and benefit
Retirement benefit expenditureWelfare expenditure
Allowance for retirement benefits for(

Printed material expenses

782,867,068
21,196,949
57,046,487

Fuel, light, and water expenses

28,363,081

Supplies expenses(

1,043,947,585
151,110,000
638,203,041
97,739,020
68,895,524

114,730,000

directors transfer
Expenditure)(- 35 -()

6,899,631△ 1,221,147,024△ 390,590,995△ 33,350,295)△ 91,202,016

91,144,000

127,814,539
111,060,902△ 7,377,211△ 129,588,669△ 39,437,484△ 28,456,131△ 77,777,907)

850,828,480 )
10,723,157
57,816,376
29,645,780△ 338,513,996△ 222,901,583△ 753,385,757(△ 1,559,661,020
20,508,431
19,610,000△ 15,253,966△ 15,873,876
5,296,273)

26,730,000

88,000,000))△ 122,512,044[2] Administrative expenses
Personnel expenditure)△ 478,049,041[1] Project cost(

△ 253,300,698△ 218,067,390△ 108,377,224△ 5,549,630△ 5,312,387△ 97,515,207
205,975,271(2) Current expenditure
Personnel expenditure△ 104,279,000△ 471,368,088(△ 67,961,412
10,473,792△ 769,889△ 1,282,699)

Account

Current fiscal year

Previous fiscal year

Tax and public charge

137,162,820
12,706,481
365,958,834
6,385,028

140,419,753
8,016,470
364,797,337
7,497,388

Travel and transport expenses

25,793,655

46,862,168

8,050,321

9,309,477

Other expenditure

72,754,234

114,228,878

Depreciation allowance

47,449,178

61,511,696

1,847,323,084

1,894,776,065

29,738,690,308
344,265,783

31,345,804,309∆784,799,177△ 1,607,114,001
1,129,064,960

0

821,932,611△ 821,932,611

Facility donated profit

175,112,423

Total nonrecurring profit

175,112,423

31,820,000
853,752,611

143,292,423△ 678,640,188

156,013,501

158,806,487△ 2,792,986

Expenses for commission
Repair expenses
Rental rate

Communication and transportation
expenses

Subtotal of administrative expenses
Total current expenditure
Current ordinary increase/decrease
2. Nonrecurring increase/decrease section

Increase/decrease△ 3,256,933
4,690,011

1,161,497△ 1,112,360△ 21,068,513△ 1,259,156△ 41,474,644△ 14,062,518△ 47,452,981(1) Nonrecurring profit[1] Gain from sale of fixed assets
Gain from sale of land and building[2] Fixed asset donated profit(2) Nonrecurring expenses[1] Loss on sale of fixed assets
Loss on sale of tools and furniture[2] Losses on impairment of fixed assets
Losses on impairment of equipment

9,176,749

0

165,190,250

158,806,487

6,383,763

9,922,173

694,946,124

354,187,956∆89,853,053△ 685,023,951

Ordinary net asset beginning balance

36,008,961,550

36,098,814,603

Ordinary net asset final balance

36,363,149,506

36,008,961,550

254,983,425

868,968,943

Total nonrecurring expenses
Current nonrecurring increase/decrease
Current ordinary net asset
increase/decrease

II. Designated net asset increase/decrease section

9,176,749

444,041,009△ 89,853,053

354,187,956[1] Cash subsidy received
Subsidy received[2] Fixed asset donated profit
Facility donated profit[3] Transfer to ordinary net assets
Current designated net assets
increase/decrease
Designated net assets beginning balance
Designated net assets final balance
III. Net assets final balance△ 613,985,518

97,065,699

28,313,770

499,390,249

293,414,978

205,975,271△ 147,341,125

603,867,735

1,341,927,302

738,059,567△ 751,208,860

1,194,586,177

1,341,927,302

37,557,735,683

37,350,888,852- 36 -

68,751,929

603,867,735△ 147,341,125

206,846,831

Notes for Financial Statements
1. Important accounting policy
Public-Service Corporation Accounting Standard (October 14, 2004, understood thing at
the concerned government ministries meeting related to teaching and direction of
public-service corporations) was employed.
(1) Assessment standard and assessment method of valuable stock certificates
For other valuable stock certificates without market price, the cost method by themoving-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 thelease period of expiration year and based on the equal installment method with zero
residue prices.
(3) Allowance allocating standard
Allowance for doubtful debts: To prepare for doubtful debts including account receivableand loan receivable, uncollectible amount is individually estimated to account for allowance.
Bonus payment reserve: To prepare for doubtful debts including account receivable andloan receivable, uncollectible amount is individually estimated to account for allowance.
Allowance for retirement benefits for vice presidents: To prepare payment of vicepresidents special service bonus, estimation at the end of period is account for allowancebased on the private regulation to pay allowance for retirement benefits for vice presidents.
Accrued retirement benefits for employees: To prepare for payment of retirement
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.

- 37 -

(4) Processing method of the finance lease trade other than ownership transfer before
beginning of initial fiscal year applying the lease account standard
Lease assets from finance lease trades other than ownership transfer with contracts
arranged by March 31, 2008 continued to be accounted for according to the ordinary lease
contract, but were concluded as of March 31, 2011.
(5) 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. Increase, decrease and its balance of fundamental asset and special asset
Increase, decrease and its balance of fundamental asset and special asset are as follows.
(Unit: yen)
Balance at theend of previous
periodCurrent increased
amountCash and deposit

7,000,000

007,000,000

Subtotal

7,000,000

007,000,000

298,740,222

020,353,561

278,386,661

Ancillary buildings

5,254,937

0

1,313,709

3,941,228

Structures

4,132,523

0773,4443,359,079

1,525,809,040

189,050,000

497,243,784

1,217,615,256

39,741,215

30,069,533

32,889,688

36,921,060

Lump-sum depreciable assets

560,701

858,566

753,983

665,284

Intangible fixed assets

578,776

877,600

683,940

772,436

3,435,900,000

003,435,900,000

5,300,000,000

3,300,000,000

700,000,000

7,900,000,000

Subtotal

10,610,717,414

3,520,855,699

1,254,012,109

12,877,561,004

Total

10,617,717,414

3,520,855,699

1,254,012,109

12,884,561,004

Subject

Current
decreasedamountBalance at the end ofcurrent period

Fundamental asset

Special asset
Building

Machine and equipment
Tools and furnitureSpecial assets for reserves
for lump-sum retirement
benefits
Special assets foracquisition of researchfacilities- 38 -

4. Breakdown of financial resources for fundamental assets and special assets
Breakdown of financial resources for fundamental assets and special assets is as follows.
(Unit: yen)
Balance at the end ofcurrent period(Including
appropriation fromdesignated net asset)(Including
appropriation fromgeneral net asset )Including liability
relating item)

Cash and deposit

7,000,000(7,000,000)--

Subtotal

7,000,000(7,000,000)--

278,386,661(278,386,661)--

Ancillary buildings

3,941,228(3,941,228)--

Structures

3,359,079(2,117,232)(1,241,847)-

1,217,615,256(864,782,276)(352,832,980)-

36,921,060(36,921,060)--

Lump-sum depreciable assets

665,284(665,284)--

Intangible fixed assets

772,436(772,436)--

Subject
Fundamental asset

Special asset
Building

Machine and equipment
Tools and furnitureSpecial assets for reserves forlump-sum retirement benefits
Special assets for acquisitionof research facilities

3,435,900,000-

7,900,000,000-(7,900,000,000)(3,435,900,000)-

Subtotal

12,877,561,004(1,187,586,177)(8,254,074,827)(3,435,900,000)

Total

12,884,561,004(1,194,586,177)(8,254,074,827)(3,435,900,000)

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

- 39 -

(Unit: yen)
Subject

Acquisition value

Accumulated

Balance at the end ofdepreciation

current period

Special asset(5,769,608,429)(4,227,947,425)(1,541,661,004)

Building

621,962,762

343,576,101

278,386,661

Ancillary buildings

131,372,924

127,431,696

3,941,228

Structures

28,268,470

24,909,391

3,359,079

4,903,123,324

3,685,508,068

1,217,615,256

Tools and furniture

82,552,173

45,631,113

36,921,060

Lump-sum depreciable assets

1,451,176

785,892

665,284

877,600

105,164

772,436

Other fixed asset(99,867,043,108)(77,554,594,443)(22,312,448,665)

Building

18,472,695,929

9,097,427,859

9,375,268,070

Ancillary buildings

12,177,718,917

9,651,802,976

2,525,915,941

Structures

5,334,545,105

4,564,160,978

770,384,127

Machine and equipment

49,861,184,033

42,385,582,529

7,475,601,504

Tools and furniture

9,725,680,424

8,246,006,436

1,479,673,988

Rolling stock and vehicle

78,247,067

61,708,991

16,538,076

Lump-sum depreciable assets

112,357,605

75,668,415

36,689,190

4,104,614,028

3,472,236,259

632,377,769(105,636,651,537)(81,782,541,868)(23,854,109,669)

Machine and equipment

Intangible fixed asset

Intangible fixed asset
Total

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, and balance of claimableassets at the end of period are as follows.
(Unit: yen)
Balance of allowance for
Subject

Claimable assets

doubtful debts at the end

Balance of claimableassets at the end of periodof period
Account receivable

711,972,714

0

711,972,714

Housing loans andwelfare loans among
special assets of accrued
retirement benefits

24,005,000

0

24,005,000

Total

735,977,714

0735,977,714- 40 -

8. Contingent liabilities such as guarantee liabilities
A guarantee liability to employees housing loans is 2,233,000,114 yen.
9. Breakdown of held-to maturity bond certificates and book values, actual values, andappraisal profit or loss
No held-to-maturity bond certificates are recorded.
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.

- 41 -

(Unit: yen)
Describing
Balance atBalance at theName of subsidies

Current

division in

Deliverer

Current decrease the end of
end of period

increasebalanceperiodsheet

Subsidies
















Subsidy for projects assessing impact on
power systems of mass adoption ofdestributed generation

Ministry of Economy,
Trade and Industry

509,171,528

0

181,774,214

327,397,314

Ministry of Economy,
Trade and Industry

03,833,773

3,833,773

0－Ministry of Economy,
Trade and Industry

0987,624

987,6240－

Subsidy for costs of project fordevelopment and demonstration of solar
power output projection technology

Ministry of Economy,
Trade and Industry

04,481,102

4,481,102

0－Subsidy of costs for development of
cutting-edge technology for energy use
rationalization

Ministry of Economy,
Trade and Industry

02,080,000

2,080,0000－Subsidy for cost of promoting technology
for coal use (research on technology forthe efficient use of coal ash)

Ministry of Economy,
Trade and Industry

0

13,340,000

13,340,000

0－Project to promote the introduction ofsolar power generation system at
CRIEPI’s laboratories in the Yokosuka
area in fiscal 2008

New Energy andIndustrial Technology
Development
Organization

14,657,478

0

1,861,499

12,795,979

Designatednet assets

Project to promote introduction regional
new energy in fiscal 2009

New Energy
Promotion Council

3,412,000

0

501,564

2,910,436

Designatednet assets

R&D for SiC innovative powerelectronics to create a low-carbon society(super-thick membrane and multi-layer
SiC epitaxial wafer technology)

Japan Society for the
Promotion of Science

182,637,180

216,906,600

190,672,381

208,871,399

Designatednet assets

Research on impact of forest’s watershedcharacteristics on hydroelectric power
generation volume (fiscal 2010 portion)

National Land
Afforestation
Promotion
Organization

877,917998,943

1,547,641

329,219

Designatednet assets

Research on impact of forest’s
watershed characteristics onhydroelectric power generation volume(fiscal 2011 portion)

National Land
Afforestation
Promotion
Organization

0

12,355,383

9,838,830

2,516,553

Designatednet assets

Fiscal 2010 grant for project to subsidize
costs of development of dual
analog/digital equipment to alleviate poor
reception

Association for
Promotion of Digital
Broadcasting

1,637,885

0273,526

1,364,359

Designatednet assets

712,393,988

254,983,425

411,192,154

556,185,259

Subsidy for projects demonstrating
optimization control technology on
next-generation power transmission anddistribution systems
Subsidy for demonstrations of
next-generation two-way communication
output control

Designatednet assets

Grant








Total

- 42 -

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)Amount ofmoney

Content
Transfer to balance of current account365,074,155

Depreciation allowance related to designated net assets

3,122,669

Transfer by exception from specification as designated net asset
Transfer by implementing of project for which subsidy was received
Total

131,193,425
499,390,249

12. Trading content to related parties
No trading to related parties is recorded.
13. Important subsequent event
No important subsequent event is recorded.
14. Trading finance lease related before beginning of initial fiscal year applying the leaseaccounting standards
There were no finance lease trades prior to the start of the first fiscal year in which leaseaccounting standards were applied.
15. Retirement benefit related(1) Summary of employed retirement benefit
As a defined-benefits system, retirement pension system and termination allowance planare employed.
(2) Retirement benefit liability and its contents(Unit: yen)

△26,013,185,064[1] Retirement benefit liability

12,908,105,356[2] Retirement pension asset[3] Non-accumulated retirement benefit ([1]+[2])[4] Non-depreciated mathematical calculation difference[5] Accrued retirement benefits for employees ([3]-[4])- 43 -△13,105,079,708△4,906,079,708△8,199,000,000

(3) Items for retirement benefit expense(Unit: yen)

[1] Working expense[2] Interest expense[3] Expectable operation benefit[4] Mathematical calculation difference depreciation[5] Retirement benefit expense ([1]+[2]+[3]+[4])1,001,696,475
432,286,020△136,891,187
23,314,252
1,320,405,560(4) 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.

- 44 -

Supplementary Statement
1. Detailed Statement of Basic Assets and Special Assets(Unit: yen)
CategoryBasicassetsSpecialassetsType of asset

Book value atstart of fiscal
periodIncrease incurrent fiscal
periodDecrease incurrent fiscal
periodBook value at
end of fiscal
periodCash and deposits

7,000,000

007,000,000

Total basic assets

7,000,000

007,000,000

298,740,222

020,353,561

278,386,661

Ancillary buildings

5,254,937

0

1,313,709

3,941,228

Structures

4,132,523

01,525,809,040

189,050,000

497,243,784

1,217,615,256

39,741,215

30,069,533

32,889,688

36,921,060

Lump-sum depreciable
assets560,701

858,566

753,983

665,284

Intangible fixed assets

578,776

877,600

683,940

772,436

Special assets forallowances for lump-sum
retirement benefits

3,435,900,000

003,435,900,000

Special assets forallowance for acquisitionof research facilities

5,300,000,000

3,300,000,000

700,000,000

7,900,000,000

Total special assets

10,610,717,414

3,520,855,699

1,254,012,109

12,877,561,004

Buildings

Machines and equipment
Tools and furniture

3,359,079

Note: The increase in special assets for allowance for acquisition of research facilities in the current fiscal period is due toreserves for special assets intended to build a testing facility in the Yokosuka district and update the mainframe; the decrease
can be attributed to the liquidation of special assets to install infrastructure such as a power source and update theshort-circuit testing facility in Yokosuka.

- 45 -

2. Breakdown of Allowances(Unit: yen)
Balance at start

Increase in currentof fiscal period

fiscal period

Decrease in current fiscal period

Balance at end

Category
Intended use

of fiscal period

Other

Allowance for employees

396,000,000

359,000,000

396,000,000

0359,000,000

Allowance for retirement
benefits for directors

309,000,000

114,730,000

121,730,000

0302,000,000

Allowance for retirement
benefits for employees

8,433,000,000

1,320,405,560

1,554,405,560

0

8,199,000,000- 46 -

Lists of Assets
As of March 31 2012
(Unit: yen)

Subject

Amount of money

Memo

I. Assets section
1. Floating asset
Cash and deposit
4,619,773,816

Mitsubishi Tokyo UFJ Bank, 4,214,512,349 yen
and others

Fixed deposit account

100,000,000

Tokyo Tomin Bank, Limited, 100,000,000 yen

Postal savings

1,935,121

General deposit

Subtotal of cash anddeposits
Securities

Japan Post Bank, 1,935,121 yen
4,721,708,937
4,126,281

Open-end bond investment trust

Account receivable

711,972,714

Funded research business income and others

Suspense payment

66,226,736

Temporary payment consumption tax onconstruction suspense account expense andothersAdvance payment

9,404,455

Total floating asset

Advance payment of optical communication lines
5,513,439,123

2. Fixed asset(1) Fundamental property
Case and deposit
Fixed deposit account

7,000,000

Total fundamental property

7,000,000

Mizuho Trust Bank

(2) Special asset
Building
Building
Accumulated depreciation
Subtotal of building

Short-circuit testing building in Yokosuka area,
etc.

621,962,762△ 343,576,101

278,386,661

Ancillary buildings
Ancillary buildings
Accumulated depreciation
Subtotal for ancillarybuildings
Structures
Structures
Accumulated depreciation△ 127,431,696

Subtotal of machine andequipment
Tools and furniture

3,941,228
Abiko area, Construction work for compatibility
with terrestrial digital broadcasting

28,268,470∆ 24,909,391

Subtotal of structures
Machine and equipment
Research machine andequipment
General machine andequipment
Accumulated depreciation

Short-circuit testing facility in Yokosuka area, etc.

131,372,924

3,359,079

Komae area, power grid simulator, etc.

4,841,186,584

Yokosuka area, solar power generator equipment,
etc.

61,936,740△ 3,685,508,068

Research tools and furniture

82,552,173

Accumulated depreciation
Subtotal of tools andfurniture
Lump-sum depreciable assets
Lump-sum depreciable
assets△ 45,631,113

1,217,615,256

Fluorescent x-ray analysis instruments, etc.

36,921,060

Computers for research purposes, etc.

1,451,176- 47 -

SubjectAccumulated depreciation
Subtotal of lump-sum
depreciable assets

Amount of money△ 785,892

Memo665,284

Intangible fixed asset
Research software
Accumulated depreciation
Subtotal of Intangible
fixed asset
Accrued retirement benefits
for employees special asset
Welfare loan
Long-term official credit
depositSpecial deposit

Science technology calculation library etc.

877,600△ 105,164

772,436

24,005,000

Personnel loan

475,742,580

Caution money and guarantee deposit and others

2,936,152,420

General deposit: Mitsubishi Tokyo UFJ bank,2,436,152,420 yen
Fixed deposit account: Mitsubishi Tokyo UFJ Bank,
500,000,000 yen

Subtotal of accrued
retirement benefits for
employees special asset

3,435,900,000

Research facility acquiring
benefits special asset

7,900,000,000

Total special asset

Fixed deposit: Mitsubishi Tokyo UFJ Bank, 4,200,000,00
yen
Fixed deposit: Mizuho Bank, 3,700,000,000 yen

12,877,561,004(3) Other fixed asset
Land
Komae area

1,803,423,271

Commercial land and welfare housing land: 68,812.45
m2

Abiko area

1,483,961,669

Ditto: 173,608.27 m2

Yokosuka area

4,319,643,545

Ditto: 251,774.71 m2

Akagi area

651,429,826

Ditto: 1,005,572.32 m2

Others440,103,991

Shiobara experimental land and others: 53,986.44 m2

Subtotal of land

8,698,562,302

Building

Building

18,472,695,929

Accumulated depreciation△ 9,097,427,859

Subtotal of building

Yokosuka area, administration building andhigh-voltage insulation laboratory, etc.

9,375,268,070

Ancillary buildings
Ancillary buildings

12,177,718,917

Accumulated depreciation△ 9,651,802,976

Subtotal for ancillarybuildings
Structure
Structure
Accumulated depreciation
Subtotal of structure
Machine and equipment
Research machine andequipment
General machine andequipment
Accumulated depreciation
Subtotal of machine andequipment

Komae area, exhaust facility in third wing, etc.

2,525,915,941

Yokosuka area, second switchgear and others

5,334,545,105△ 4,564,160,978

770,384,127

Large-capacity power short-circuit testing facility, etc.

49,453,876,425

Equipment parking facility, etc

407,307,608△ 42,385,582,529
7,475,601,504- 48 -

Subject

Amount of money

Memo

Tools and furniture
Research tools and furniture

8,446,162,975.

General tools and furniture

1,279,517,449

Human iPS cell analyzer, etc.

Accumulated depreciation△ 8,246,006,436

Telephone exchange system, etc.

Subtotal of tools andfurniture
Rolling stock andvehiclesRolling stock and vehicles
Accumulated depreciation
Subtotal of rolling stockand vehicles

1,479,673,988

78,247,067△ 61,708,991

High-altitude work vehicle, etc.
16,538,076

Lump-sum depreciable
assetsLump-sum depreciable assets
Accumulated depreciation
Subtotal of lump-sum
depreciable assets

112,357,605△ 75,668,415

Experiment and research tools, research and work
computers, etc.
36,689,190

Intangible fixed asset
Research software
Business software
Facility utilization rightTelephone right
Accumulated depreciation
Subtotal of intangible fixed
asset
Building underconstruction

2,941,495,946

126,218,328

Communications network performance assessment
system, etc.
ERP system and others

716,000

Payment for water service application, and others

1,036,183,754△ 3,472,236,259.

Each area telephone rights
632,377,769
1,175,744,733

Long-term advanced payment

Construction work to install power-supply
infrastructure in Yokosuka area, etc.

60,133,599

Other fixed asset total

Amount equivalent to the facility construction costportion of the research costs for the joint research
project, “Research on Integrated Coal Gasification
Combined Cycle Experiential Plants”

32,246,889,299

Fixed asset total
45,131,450

Asset total,303
50,644,889

II. Liability section,426
1. Floating liability
Accrued liability

4,137,465,605

Money entrusted

88,335,782

Advance receipt

1,352,356

Accrued bonuses

359,000,000

Contract construction and purchased goods expenseand others
Consumption tax, inhabitant’s tax and others
Advance receipt related to next fiscal year
implementation grant, and others
Allowance for employee, etc. bonus

Floating liability total
4,586,153,

2. Fixed liability

743
Allowance for retirement benefits
for directors
Allowance for retirement pension
benefits for employees
Accrued retirement lump sum
benefits for employees

302,000,000
Allowance for retirement benefits for vice presidents
and general auditors.
7,603,000,000- 49 -

Subject
Allowance for retirement
benefits
Sub-total for allowance forretirement benefits

Amount of money

Memo
Allowance for lump-sum retirement benefits for
employees

596,000,000

Allowance for retirement benefits for employees

8,199,000,000

Total fixed liability

8,501,000,000

Total liability

13,087,153,743

Net asset

37,557,735,688- 50 -Cash flow calculation sheet
From April 1, 2011 to March 31, 2012
(Unit: yen)
Subject
I. Cash flow in business activity
1. Current period ordinary net property increase/decrease
2. Adjust amount to cash flow
(1) Depreciation allowance(2) Fixed asset loss on retirement(3) Losses on impairment of fixed assets
(4)
(5)
(6)
(7)

Transferred long-term advance payment
Gains on sale of fixed assets
Facility donating profit
Increase/decrease in allowance for retirement benefits for
directors(8) Increase/decrease in accrued retirement benefits for employees(9) Increase/decrease in accrued bonus(10) Increase/decrease in account receivable(11) Increase/decrease in suspense payment(12) Increase/decrease in advance payment(13) Increase/decrease in accrued liability(14) Increase/decrease in money entrusted(15) Increase and decrease of advanced receipt(16) Transferred amount from designated net property(17) Others
Subtotal
3. Increase/decrease in designated net property(1) Subsidy income
Cash flow by business activity

Current year

Previous year

Increase/decrease354,187,956∆ 89,853,053

444,041,009

5,732,754,324
156,013,501

5,824,594,749
158,806,487△ 91,840,425△ 2,792,986

0
228,156,594∆ 821,932,611∆ 31,820,000△ 175,112,423△ 7,000,000

533,000,000
4,000,000∆ 379,580,251
11,238,595∆3,339,769∆ 756,238,449
5,900,167∆ 120,066,210∆ 293,414,978△ 286,428
5,795,669,851∆ 26,800,000
4,420,504,324

254,983,425
6,404,841,232

868,968,943
5,199,620,214△ 143,292,423△ 95,000,000△ 767,000,000△ 41,000,000
734,501,943△ 51,146,818
2,993,844
1,206,846,016△ 15,831,611
117,988,100△ 205,975,271
26,513,572
1,375,165,527△ 613,985,518
1,205,221,018△ 250,000,000

700,000,000

950,000,000

01,001,729,553

700,000,000

1,951,729,553△ 1,001,729,553

2,600,000,000
5,569,703,401
6,007,991,412 8,169,703,401△ 5,307,991,412 ∆ 6,217,973,848△ 2,861,711,989△ 2,161,711,989
909,982,436

3,300,000,000

2,707,991,412

III. Cash flow by financial activity
1. Financial activity income
2. Financial activity expenditure

9,176,749△ 130,907,774
821,932,611

88,000,000△ 234,000,000△ 37,000,000
354,921,692△ 39,908,223△ 345,925
450,607,567△ 9,931,444△ 2,078,110△ 499,390,249

II. Cash flow by investment activity
1. Investment activity income(1) Revenue from liquidation of specific assets for allowances foracquisition of research equipment(2) Fixed asset sale income
Total investment activity income
2. Investment activity expenditure(1) Special asset acquiring expenditure(2) Fixed asset acquiring expenditure
Total investment activity expenditure
Cash flow by investment activity

9,176,749
97,248,820
000△ 1,251,729,553

700,000,000

0
0

0
0

Cash flow by financial activity
IV. Difference in conversion of cash and cash equivalent
V. Increase/decrease in cash and cash equivalent00
1,096,849,820 ∆ 1,018,353,634

00VI. Cash and cash equivalent balance at the beginning of a period (note 3)
VII. Cash and cash equivalent balance at the end of a period (note 3)

3,628,985,398
4,725,835,218

00

4,647,339,032
3,628,985,398

2,115,203,454△ 1,018,353,634
1,096,849,820

Notes 1. Asset scope: Asset scope includes cash and cash equivalent.
2. Important non-asset trade: No important non-asset trade is reported.
3. Relation between cash and cash equivalent balance at the end of a period and amount of money described in balance sheet
Subject
Cash deposit
Securities
Cash and cash equivalent

Beginning of current period
3,624,861,993
4,123,405
3,628,985,398- 51 -End of current period
4,721,708,937
4,126,281
4,725,835,218

II. Statement of Revenue and Expenditures
Statement of revenues and expenditures
From April 1 2011 to March 31 2012
(Unit: yen)
Subject

BudgetAccount settlement

Remarks

Difference

I. Business activity balance of payments section
1. Business activity income(1) Benefit income
Current benefit income(2) Business income

27,270,000,000,

27, 273,319,000∆ 3,319,000

2,390,000,000

2,439,904,895∆ 49,904,895

Funded research business income(

1,800,000,000 )(

1,795,474,568)(

4,525,432)

Other business income(

590,000,000 )(

644,430,327)(△ 54,430,327)(3) Other income
Total business activity income

110,000,000

125,038,944∆ 15,038,944

29,770,000,000

29,838,262,839∆ 68,262,839

2. Business activity expenditure(1) Business expense expenditure

23,590,000,000

22,444,853,388

1,145,146,612△ 66,862,753

Personnel expense expenditure(

10,020,000,000 )(

10,086,862,753)(

Expense expenditure(

13,570,000,000 )(

12,357,990,635)(

1,212,009,365(2) Management cost expenditure

1,760,000,000

1,839,082,596△ 79,082,596))

Personnel expense expenditure(

980,000,000 )(

1,103,664,706)(∆ 123,664,706)

Expense expenditure(

780,000,000 )(

735,417,890)(

44,582,110)

Total business activity expense
Difference in business activity balance of
payments

25,350,000,000

24,283,935,984

1,066,064,016

4,420,000,000

5,554,326,855△ 1,134,326,855

700,000,000

700,000,000

0II. Investment activity balance of payments section(1)

1. Investment activity income(1) Special asset transferred income
Research facility acquiring special asset transferredincome(2) Long-term advance payment transferred income

110,000,000

97,248,820

12,751,180

Total investment activity income

810,000,000

797,248,820

12,751,180

2,800,000,000

3,300,000,000∆ 500,000,000

4,120,000,000

3,457,144,737

662,855,263

6,920,000,000

6,757,144,737

162,855,263∆ 6,110,000,000△ 5,959,895,917△ 150,104,083

1. Financial activity income

0

0

0

2. Financial activity expenditure

0

0

0

0

0

0

1,691,854,442

2. Investment activity expenditure(1) Special asset acquiring expenditure

Expenditures on special assets for allowances foracquisition of research equipment(2) Fixed asset acquiring expenditure
Total investment activity expenditure
Difference in investment activity balance of
payments
III. Financial activity balance of payments

Difference in financial activity balance of
payments
Difference in current balance of payments
Difference in balance of payments transferredfrom previous period△ 1,690,000,000
1,690,000,000△ 405,569,062△1,284,430,938

0

1,286,285,380△ 1,286,285,380

Difference in balance of payments transferring
to next period- 52 -△ 1,854,442

(2)
(3)

Notes:(1)

The difference is due to savings on expenses for commissions, supplies expenses, and light and fuel expenses.

(2)

Reserves for special assets intended for infrastructure in the Yokosuka region increased by 500 million yen.

(3)

The difference can be attributed primarily to the introduction of research equipment carried over to the following fiscal
year.

- 53 -

Note for income and expenditure accounts
1. Scope of revenue
Scope of revenue includes cash and deposit, securities, account receivable, suspense payments,
advanced payment and accrued liability, money entrusted, and advance receipt. Balances at the ends ofprevious and current periods are as shown in the following paragraph 2.

2. Breakdown of assets and liabilities included in difference in balance of payments transferred to next
period.
(Unit：yen)
Subject

Balance at the end of

Balance at the end of

previous period

current period

3,624,861,993

4,721,708,937

4,123,405

4,126,281

Account receivable

1,066,894,406

711,972,714

Suspense payment

26,318,513

66,226,736

Advanced payment

9,058,530

9,404,455

4,731,256,847

5,513,439,123

Accrued liability

2,937,704,713

4,137,465,605

Money entrusted

98,267,226

88,335,782

Advance receipt

3,430,466

1,352,356

Total

3,039,402,405

4,227,153,743

Difference in balance of payments

1,691,854,442

1,286,285,380

Cash and deposit
Securities

Total

transferred to the next period

3. Relation between the final accounts for the fixed asset acquiring expenditure and those indicated in the
cash flow calculation sheet(Unit：yen)
Expenditure by acquisition of fixed asset (cash flow calculation sheet)

2,707,991,412
749,153,325

Increase/decrease of accrued liability
Final amount of fixed asset acquisition expenditure

3,457,144,737

4. The final amount of expenditures for fixed asset acquisition includes 123,790,000 yen in fixed assets
acquired with revenue from subsidies.

- 54 -

Audit Report by Third-Party Auditor
May 9, 2012
Central Research Institute of Electric Power Industry
President Masahiro Kakumu
Meisho auditors
Senior Partner
Managing Partner
Managing Partner

Certified Public Accountant,
Yoshihiro Wada
Certified Public Accountant,
Masayuki Tomikawa<Audit of Financial Statements>
We audited the financial statements of the Foundation of Central Research Instituteof Electric Power Industry (herein after referred to as CRIEPI) in the FY2011 businessterm from April 1, 2011, to March 31, 2012, including balance sheets, net assets
increase/decrease calculation sheet, cash flow calculation sheet, notes on financial
statements and list of assets.
Management’s responsibility for financial statements
Management is responsible for the preparation and fair presentation of theconsolidated financial statements in accordance with accounting principles generally
accepted in Japan, and for such internal control as management determines isnecessary to enable the preparation of consolidated financial statements that are freefrom material misstatements, whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to express an opinion on the consolidated financial statements
based on our audit as independent auditor. We conducted our audit in accordance withauditing standards generally accepted in Japan. Those standards require that we planand perform the audit to obtain reasonable assurance about whether the consolidated
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about theamounts and disclosures in the consolidated financial statements. The procedures
selected depend on our judgment, including the assessment of the risks of material
misstatement of the consolidated financial statements, whether due to fraud or error. In
making those risk assessments, we consider internal control relevant to the entity’s
preparation and fair presentation of the consolidated financial statements in order todesign audit procedures that are appropriate in the circumstances, while the objective- 55 -

of the financial statement audit is not for the purpose of expressing an opinion on theeffectiveness of the entity’s internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall presentation of theconsolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion.
OpinionIn our opinion, the financial statements referred to above present fairly, in allmaterial respects, the net change in assets and cash flow for the period for which thefinancial statements were prepared, in accordance with accounting principles generally
accepted in Japan.
<Opinion on balance sheets>
We conducted an audit of CRIEPI’s balance sheets (including the notes for thebalance sheets; same below) for the 2011 fiscal year from April 1, 2011 to March 31,
2012.
Management’s responsibility for balance sheets
Management is responsible for preparing the statement of revenues andexpenditures in accordance with the “Internal Controls in Accounting for Public
Interest Corporations” (by arrangement of the board of the Liaison Council for Related
Ministries and Agencies concerned with the guidance and supervision of public interest
corporations dated March 23, 2005; hereinafter, “internal controls”).
Auditor’s responsibility
Our responsibility is to express an opinion on whether the balance sheets wereprepared in accordance with internal controls.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
Auditor’s opinion on statement of revenues and expenditures
We believe that the statement of revenues and expenditures referred to above wereprepared in accordance with the internal supervision matters, in all material respects.

- 56 -

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.

- 57 -

Audit Report- 58 -

Audit Report
May 16, 2012
Central Research Institute of Electric Power Industry
President Masahiro Kakumu
Central Research Institute of Electric Power Industry
General Auditor, Kouichi Nishi
General Auditor, Makio Fujiwara
General Auditor, Koji Kaibe
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, 2011 to March 31, 2012
and report the audit method and results as follows.
1. Outline of the audit method
In accordance with the audit standards and the fiscal 2011 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 established toensure appropriate and efficient business operations (internal control system) from directors
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 of revenue
and expenditures (balance sheets, net assets increase/decrease calculation sheet, detailed
statements on the balance sheets and net assets increase/decrease calculation sheet, cash flow
calculation sheet and list of assets, and statement of revenues and expenditures).
2. Results of audit(1) We recognized that the business reports properly indicated business contents of CRIEPI.

- 59 -

(2) We have determined that there were no serious occurrences of dishonest or false activity
or violations of any laws, acts of endowment or the Articles of Incorporation by any ofthe directors in carrying out their duties.
(3) There are no points to note regarding the establishment and administration of the internal
control system.
(4) The method of audit employed by Meisho auditors and the results thereof are proper andthe statements of revenue and expenditures properly presents CRIEPI’s financial assets
and income and expenditures.

- 60 -