FY 2012
Reports on
Research Activities
Settlement of Accounts
From April 1, 2012
To March 31, 2013

June 2013
Central Research Institute of Electric Power Industry

Contents
Reports on Research Activities
Page
On the Publication of the Research Activities Reports for Fiscal 2012 ・・・・・・・・・・・

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Key Initiatives in Fiscal 2012 ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

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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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Settlement of Accounts
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I. Financial Statements ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

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II. Supplementary Statement

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Outline of Settlement of Accounts

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Audit Report by Third-Party Auditor

Audit Report
Audit Report

Reports on Research Activities
FY 2012

On the Publication of the Research Activities Reports for Fiscal 2012
In April 2012, CRIEPI became a general incorporated foundation and endeavored toaugment its research foundation and carry out business activities independently in its role as a
joint research institute for the electric power industry and an independent academic research
institution, while responding to changes in the business environment.
In our research activities, we aimed to build a robust and flexible new energy
supply/demand infrastructure in response to the Great East Japan Earthquake and Fukushima
Daiichi nuclear reactor accident. Accordingly, we pursued our research under the three pillarsof “establishment of optimal risk management,” “further improvement of facility operations
and maintenance technologies” and “development of a supply/demand infrastructure for nextgeneration electric power,” and steadily achieved results in these areas.
In conjunction with this, we reexamined the necessity and the order of priority for all of
our research plans and brushed up our research strategies, based on changes in theenvironment for the electric power industry after the earthquake. Through close
communication with all levels and sectors of the electric power industry, we came up with an
overall future picture of technology development in this industry going forward and clarified
CRIEPI’s own role in this picture. From that point, we endeavored to identify those researchsubjects that we would focus on even more and those that we would address at a slower pace.
Although we had already formed our fiscal 2012 plans, we changed our research projects inline with changes in the environment and accurately reflected this in research plans fromfiscal 2013.
At the same time, we expect that the electric power industry’s difficult financial situation
will mean that CRIEPI will continue to face budget constraints for some time. To adapt to this,we made further cuts in operating costs across our business activities and expanded the
reductions in personnel expenses. At the same time, we reinforced our research structure
through mechanisms that would facilitate our research in order to continue to fulfill our
mission to produce and provide high-quality research results even in a difficult environment.
We have summarized the main research results achieved through these business activities
and our initiatives in research and administration in this research activity report and financial
statements.

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Key Initiatives in Fiscal 2012
 Research with the aim of building a robust and flexible new electric power
supply/demand structure
In light of changes in situation of society and the electric power industry, in fiscal 2012
we exercised our comprehensive strengths and prioritized the particularly urgent issues ofimproving the safety of light water reactors and natural disaster countermeasures for electric
power facilities.
Below, we have laid out representative results for each of the research pillars, which
express the medium-term direction of our research.
(1) Establishment of optimal risk management
We enhanced the safety of light water reactors with safety assessments for external
natural events such as earthquakes and tsunami as well as severe accident countermeasures,and developed technology to alleviate the risk that natural disasters pose to electric power
facilities and aid the recovery process. In addition, in light of the progress with regulatory
reforms in the electric power industry, we carried out research on the institutionalframework to be adopted for the reform.
 Seismic activity assessment of faults on site of nuclear power plants
 Development of assessment methods for effect of tsunami wave power on nuclear power
facilities
 Severe accident assessment for spent fuel pools at nuclear power plants
 Development of technology for predicting snow-related damage on electric powertransmission facilities and examination and evaluation of countermeasure techniques Identification of issues in institutional design for electric power industry associated withthe power system reform(2) Further improvement of facility operations and maintenance technologies
We researched the preservation and management of nuclear power plants, which isessential to their safe and stable operation, and developed technology supporting therational construction, operation and maintenance of thermal and hydro power generating
facilities and electric power transmission and distribution facilities.
 Improvement of prediction model for irradiation embrittlement in light water reactor
pressure vessels based on the most recent surveillance test data Development of remaining life assessment techniques for high chromium steel pipes atcoal-fired thermal power plants-2- Verification tests of onsite cleaning technology for large-scale power transformers
contaminated with trace PCB
 Development of technology for assessing soundness of aged transmission steel towers(3) Development of a supply/demand infrastructure for next-generation electric power
We developed thermal power generation technology to expand the types of coal usedand effectively use low-grade resources, and also developed next-generation gridtechnology enabling the large-scale introduction of solar power and other sources ofrenewable energy into the power system.
 Combustion characteristic assessment toward use of coal with a low Hardgrove
Grindability Index (HGI)
 Improved distribution system control technology to control the voltage variations when
renewable energy is introduced(See “I. Research Activities” for details.)
 Reformulating research strategies by brushing up research plans
Changes in the electric power industry’s operating environment after the earthquake has
forced major revisions to research development in the electric power industry overall. As aresult, CRIEPI, a joint research institution for the electric power industry, surveyed theindustry’s prospective research development issues and clarified our own role in resolving
these issues in order to contribute to the resolution of urgent problems and remain accountable.
In addition, we reexamined the need and order of priority for all research plans in terms of theelectric power industry’s needs, and reformulated research strategies from the starting point ofelectric power technology.
When reexamining our plans, we summarized the needs and requests through close
communication with all levels and sectors of the electric power industry and grouped researchissues into the three categories below. We reflected the results of our review in fiscal 2012activities as much as possible and endeavored to generate research output in a timely manner.
○ Research subjects for which initiatives will be ramped up
Issues contributing to risk response and improved efficiency of electric power supply
 Improvements to safety of light water reactors, natural disaster countermeasures ontransmission and distribution facilities, analysis and evaluation of electric power system
reforms
 Advanced thermal power technologies, evaluation of network security for introduction ofrenewable energy, etc.

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○ Research subjects we will continue to address
Issues contributing to stable supply of electric power Support for stable operations of light water nuclear reactors, development of operationand maintenance technologies for power generating facilities and power transmission anddistribution facilities, etc.
○ Research subjects whose initiatives will be revised (slowed or postponed)
Issues contributing to improved convenience of electricity use and resolution of future
problems
 Promotion of electrification, next-generation equipment development and materials
development, etc.
*We strive to maintain our fundamental research strengths by adjusting roles and methods
in our research, depending on the issue.
We will continue to carry out these activities and further augment these research plans sothat our efforts will lead to the rapid and accurate delivery of solutions addressing the electric
power industry’s requests.
(Refer to “I. Research Activities—3. Pursuit of Research” for details.)
 Extensive streamlining across all activities to facilitate a strength research structure As in fiscal 2011, we have changed our research plans and statement of budget toaccommodate the reduction in donations in this fiscal year. In order to avoid changes in
research plans due to revised research expenditures, which were already reduced at the startof the fiscal year, we revised specifications for projects underway, put off plans to upgrade
facilities, and ensured competitive bidding in outsourcing and procurement. This resulted in
an approximately 10 % reduction in expenditures across operations. Moreover, we willcontinue producing high-value research results despite budget constraints by verifying thepriority of research subjects and their cost effectiveness, thus making our research system
more resilient.
 We decided to cut executive salaries 20 % and make across-the-board cuts to managerial
employees’ annual salaries as well as reduce the annual salaries of managerial employees
based on performance. We also lowered the bonuses of general employees. We considered
measures to bring the number of employees down to an equilibrium point of about 800 inorder to reduce personnel expenses, which are a fixed cost.
 Rebuilding our research bases will not only strengthen our future research capacity but also
lead to reductions in operating costs. Accordingly, while reducing the budget in line with-4-

(Refer to “I. Research Activities—3. Pursuit of Research” and “II. Operations andManagement” and “III. Workforce” for details.)
Through these activities, we steadily pursued the public interest expenditures planfollowing our transfer to the status of general incorporated foundation.

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I. Research Activities
In fiscal 2012, CRIEPI pursued research with the aim of building a robust and flexible
new energy supply/demand structure that will ensure a stable supply of power to support thefoundation of Japan’s socio-economic activities. In particular, we focused our collective
strength and prioritized efforts to improve the safety of light water reactors and enhancenatural disaster countermeasures for electric power facilities, which are urgent issues for theelectric power industry.
Table 1 shows the number of reports issued and Table 2 shows the number of papers
presented, which illustrates our research results in fiscal 2012.
1. Priority subjects and priority subjects with limited terms
CRIEPI set 33 project subjects, selected as those most needed by the electric powerindustry, to focus its efforts and maintain, continue or develop.
We identified nine priority subjects with limited terms from among these 33 projectsubjects as particularly urgent issues that must be resolved quickly through the institute’s
collective strengths, and produced steady results. Priority subjects and priority subjects withlimited terms that are highly inter-related will be grouped together in 11 subject groups as we
endeavor to produce and disseminate effective results. The main research results for eachpillar are outlined below by subject group.
(1) Establishment of Optimal Risk Management

CRIEPI assessed the impact of natural phenomena and socio-economic changes on theelectric power industry and proposed countermeasures that encompass social systems andmechanisms.
In particular, we worked on improving the safety of light water reactors and resolving
issues related to identifying the risks of radiation, which are particularly pressing issues forthe electric power industry since the Fukushima Daiichi nuclear power plant accident. We also
pursued research related to prediction methods for natural phenomena and countermeasuretechniques, as well as research on technology supporting recovery, to counter disasters forelectric power transmission and distribution facilities. Moreover, we evaluated new systems
and policies in our research on institutional framework for the electric power industry.
Nuclear power plant safety We used our active fault evaluation technology, such as dating technique, to assess theactivity of faults on the site of nuclear power plants. We also developed a device that canobtain an undisturbed fault sample without disturbing the fault area included in the boringcore.
 We developed a simple and highly accurate new method for assessing tsunami wave

-6- We developed methods for predicting the volume of collapsed rock masses and theirtraveling area in order to evaluate the impact of a slope failure on crucial buildings,
structures and equipment and examined the validity of the method by comparing it to aslope failure experiment results obtained using a shaking table test.
 We used the modular accident analysis program (MAAP, version 5) for analysis toqualitatively assess the event transition in the case of both a loss-of-coolant accident for
spent fuel pools and a loss-of-coolant due to station black out at a nuclear power plant.
This not only enabled us to accurately estimate the amount of cooling times until thefuels are uncovered in the event of a loss-of-coolant function, but also demonstrated thatin the event of a loss-of-coolant, the spent fuels could be cooled through natural
circulation of air when the decay heat power of assemblies is small.
 We developed a hydrogen/vapor ventilation assessment model for nuclear reactor
buildings that can analyze the behavior of hydrogen leaking within the buildings in theevent of an accident at a boiling water reactor and easily calculate the hydrogenconcentration in the building.
 In light of the successive fire due to HEAF(high energy arcing fault) event in the highvoltage metal-clad switch gear at the Onagawa Nuclear Power Plant when the 2011 off
the Pacific coast of Tohoku Earthquake struck, we conducted fire simulation tests on fullscale high-voltage metal-enclosed switch gear components (non-seismic and non-arc
proof type), and also evaluated arcing energy and the possibility of the successive fireoccurrence.
 We carried out a ocean diffusion simulation of radioactive substances in the wide area off
the coast of Fukushima, taking into account the fall-out conditions from the atmosphere,
and confirmed that the results were consistent with the ocean monitoring results. We also
developed a method for reproducing the concentration of radioactive substances inmarine organisms such as Japanese sand lance and olive flounder using the concentrationof radioactive substances in ocean water obtained in the simulations.
Radiation risks
 A framework concept of application of intermediate ‘reference levels’ (dose target values),
recommended by the International Commission on Radiological Protection (ICRP),
according to the progress of the environmental remediation and the reduction in theexisting ambient dose was proposed for a safe and practical management of radioactive
wastes including contaminated soil under an existing exposure situation with a certain
ambient dose due to contamination after the accident at the Fukushima Daiichi nuclear-7- In order to determine whether the replacement of damaged stem cells by normal tissue
stem cells (turnover) were related to the mechanism of the dose rate effect (in which
health risks do not increase as a result of long-term exposure to low-dose-rates ofradiation), we developed a method for quantitative evaluation of the turnover of stem
cells. We confirmed the method’s effectiveness under exposure to high-dose-rates.
Backend Management in Nuclear Fuel Cycle
 We carried out laboratory experiments to ascertain initial stress and gas influx conditions
in order to accurately evaluate the effect that hydrogen gas occurring due to metal
corrosion in low-level radioactive waste interfere with the barrier function of bentonite,which prevents the leak of radioactive substances. We also refined the numerical code forgas-liquid two-phase flow (developed by CRIEPI), which can assess gas migration, andpresented an impact assessment method for initial stress and gas influx conditions.
 Given concerns over shortages of the wood used as a shock-absorbing material inradioactive substance shipping cask, we conducted material tests and drop tests using
shipping cask scaling specimens to confirm that rigid polyurethane foam can be used as a
substitute.
Natural Disaster Countermeasures at Power Transmission and Distribution Facilities As part of our efforts to mitigate climate and marine disasters for electric power facilities
and support recovery after disasters, we incorporated analytical results from the climate
radar into the Numerical Weather Forecasting and Analysis System (NuWFAS) that wedeveloped and found that this enabled us to accurately predict weather about three hours
out and assess squalls resulting from low atmospheric pressure and typhoons at a highdegree of resolution (about 50 m mesh).
 In order to examine snow-related damage and the effectiveness of countermeasures tocounter this damage, we continued to operate a snow-related damage database made up
of data from measurement systems set up nationwide, data on damage and related
weather information. Using those data, we identified the weather conditions for snow
accretion and refined our snow accretion forecasting methods.
 Aiming at establishing the rational lightning protection scheme for distribution lines, wedeveloped a lightning risk assessment program that evaluates distribution line outage
rates for different lightning countermeasures taking into account regional distribution line
density and lightning frequency.
Recommendations for energy and environmental measures
 In order to contribute to the future institutional design as part of the reforms to theelectric power system currently underway, we surveyed the status of electric power-8- Given the international agreement over the long-term goal to keep the temperature
increase since preindustrial below 2 °C, we proposed a more realistic scenario based on
the new concept of climate stabilization focusing on long-lasting CO2 uptake by theocean. In this scenario, even if the excessive emission of greenhouse gases is not reducedin the 21st century, the temperature would be stabilized by bringing emissions to zerofrom the middle of the 22nd century.
(2) Further Improvement of Facility Operations and Maintenance Technologies

To ensure stable electricity supply, we pursued research development on technology
related to the preservation and management of light water reactors, essential to their ongoing
operation, as well as technology supporting the construction, operation and maintenance ofthermal and hydro power generating facilities and power transmission and distribution
facilities.
Development of Plant Life Management Technology for Light Water Reactors
 Microstructural characterization of highly-irradiated surveillance materials were
performed for a better understanding of the mechanism of the neutron irradiation
embrittlement of reactor pressure vessel steels. We confirmed that the microstructuralchanges of the materials were well within expected, which allowed us to calibrate thecurrent embrittlement correlation method to the most recent surveillance data in order toimprove the accuracy of the method.
 We evaluated the thinning area and relative thinning amount caused by flow accelerated
corrosion (FAC) for T-tubes with reinforcing plates and T-joints and identified thethinning trend based on flow analysis. Their configurative restrictions make it difficult tomeasure the wall thinning accurately.
Construction, Operation and Maintenance of Power Generating Facilities
 We analyzed a large amount of creep test data in order to improve the reliability of creep
life assessments for high chromium steels used in coal-fired thermal power plants, andrefined the creep life evaluation formula for welded joints of the steels. As a result, weare now able to more accurately evaluate the creep life of welded joints over a long
period of about 100,000 hours.
 In order to improve the efficiency of bird survey in the risk assessment of bird collisions
to wind turbines, which has been mandated in the Environmental Impact Assessment Law-9- In order to support air environmental assessments for thermal power plants, wedeveloped software to quickly and easily project the concentration distribution of gas
emissions on the surface of the ground, based on the location of sources, the height ofstacks and the condition of exhaust gas.
 With the aim of rationally operating hydropower dams, we developed a method forevaluating changes in the stability of the slope around the dam caused by rainfall
infiltration to the ground. In addition, we developed a system to identify information on
dynamic state of sediments in a river in real time, such as turbidity and water quality inactual rivers, in order to predict sediment depositions in the river and turbidity after
discharge begins.
Operation and Maintenance Support for Electric Power Transmission and Distribution
Facilities With the aim of reducing the disposal cost of PCB contaminated transformers, we
conducted tests of the heat circulation cleaning and the energizing circulation cleaningdeveloped by CRIEPI on large-scale power transformers contaminated with trace PCBs.
This verified that cleaning results meeting the standards set by the Ministry of theEnvironment are being achieved.
 In order to support rational updates for electric power distribution facilities, we developed
a lifetime estimation method taking into account intensity degradation of oil-immersed
transformers’ insulating paper and the amount of short-circuit current caused by lightning.
In particular, we made stochastic life evaluations possible for the incidence of shortcircuit current caused by lightning.
 We clarified corrosion characteristics inside steel pipes through exposure tests to establish
maintenance and management techniques for power transmission steel towers to support
the formulation of rational renewal plans. We also confirmed that corroded areas can be
identified and remaining wall thickness can be assessed by adopting an ultrasonic flaw
detection method that we developed for corrosion tests from the outer wall of steel pipes.
(3) Development of a Supply/Demand Infrastructure for Next-generation ElectricPower
We developed technology for thermal power plants that makes it possible to expand thetype of coal used and efficiently use low-grade resources, with the aim of achieving energy
security. Moreover, we developed technology for next-generation grids enabling the smooth
introduction of solar power and other sources of renewable energy into the power system, as- 10 -

well as technology that promotes the efficient use of energy and energy conservation, such as
next-generation heat pumps and high-performance power semiconductors.
Developing more advanced thermal power technology
 In order to diversify the types of fuel used in pulverized coal-fired power generation, we
carried out grinding and combustion experiments on coal (low-HGI coal), which is not
used because of its low grindability. We determined that even if the particle of low-HGI
coal is coarser than that of the pulverized coal usually used, high combustion efficiency
can be achieved because of high volatile matter content.
 In order to support the operations of the Integrated coal Gasification Combined Cycle(IGCC) demonstration plant, we developed a simplified tool for predicting gasification
characteristics in the demonstration plant from the fundamental experiments on
gasification reactivity under high temperature and elevated pressure. We also developed
the technique, which was based on the numerical analysis technique including the molten
slag behavior evaluation to evaluate coal adaptability to IGCC commercial plants.
Next-generation Grid Technologies
 We carried out an analysis incorporating the static voltage regulator (SVR) model into theunbalanced load-flow calculation program that we developed and proposed an SVR
control method that is effective in controlling imbalances in order to address voltage
imbalances that occur in electric power systems as a result of skewed connections in eachphase in single-phase large-capacity equipment, such as photovoltaics (PVs) and heatpump-type hot water supply devices.
 In order to establish communication technology that can be applied to collect a data fromsmart meters, we clarified the communication characteristics of multi-hop wirelesscommunication systems using 920 MHz band which is one of a candidate to be used forthe smart meter communications systems. Furthermore we proposed an optimizing
method for the communication parameters such as transmission timing, transmission
waiting time, and the number of retransmissions in order to improve the communication
successes rate.
 In order to consider the effectiveness of new methods for applying demand response(DR) to counter voltage limits on distribution lines through reverse power flow from PVs,
we identified the relationship between the PV connection rate and number of days andtime DR is set in motion, and also clarified the applicable scope in which these methods
would be economically effective compared to previous equipment countermeasures.
Electrification and Energy Conservation Technologies
 We had previously developed a new residential heat pump for hot-water room heating incold areas using CO2 refrigerant jointly with an electric power company and a- 11 -

 Lithium-ion batteries (LIBs) are expected to be used for level-operation on electric
power fluctuation connected with renewable power generation such as photovoltaic
cells. By quantitative evaluations of the degradation mechanism on the electrode’s active
material with disassemble inspection of the degraded cell, we elucidated the capacity
fading of the LIB could be explained by degradation of the cathode active material andchanges in the cathode potential behavior.
 In order to examine the energy-saving effect of electric kitchens, we conducted
experiments to confirm that there was no significant increase in temperature in the
kitchen, reducing thermal comfort, or increase in condensation or smell even if theamount of ventilation was reduced to 50 % of the current standard.
2.

Basic Technology Subjects

We designated 37 basic technology subjects in fiscal 2012 to capitalize on the strengths
and specialized skills of eight laboratories in order to refine the basic technology skills thatare the source of solutions to issues faced by the electric power industry and strengthening ourresearch skills in each specialty. These include field studies, the accumulation of data andknowhow generated in experiments and observations, the development, formulation andrefinement of analytical methods and algorithms, and basic research to bring new ideas to life.
Our main achievements are outlined below.
Socio-economic Research Center:In light of the major changes in the electric power industry, the Socio-economic ResearchCenter accurately identified social changes and policy trends related to the electric powersystem, and also conducted multi-faceted analysis and evaluation, such as technicalassessments and economic analysis, on a broad range of activities in the electric powerindustry and its relationship with society.
 We estimated the economic impact that a zero nuclear power policy would have for two
scenarios: a scenario through 2018 in which no new thermal and other power plants
would be built and a scenario through 2030 in which new power plants would be built.
We found that GDP would fall by a cumulative 28 trillion yen in the first scenario and 86
trillion yen in the second scenario.
 Focusing on the French cases where the Commission Locale d'Information (CLI) plays acritical role, we examined how to improve stakeholder involvement and thereby derived
concrete lessons for the ongoing comprehensive review of nuclear emergency
preparedness in Japan.

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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 throughlarge-scale power sources and diversified power sources. The laboratory also pursued researchon the development, testing and assessment of customer service technologies that promote theefficient use of electricity.
 In order to improve the lightning protection performance of the microwave radio
equipment which make up important communication circuits of the electric powercompanies, we proposed a technology that would reduce the effect of lightning surges by
replacing the waveguide part of the microwave radio equipment with optical fiber, opticalto electrical converters and electrical to optical converters.
 In order to facilitate energy conservation in households, we identified the problem withthe previous approach to selecting air conditioners, in which criteria were limited to thesize of the room and the anticipated annual electricity fees. We designed a tool supporting
the selection of household air conditioners in which the insulation grade of the house andthe lifestyle of the residents are also used as criteria.
Nuclear Technology Research Laboratory:
The laboratory pursued fundamental researches related to improving the safety andmaintenance of light water reactors, technologies for fuel cycles, and measures to prevent
human error. The laboratory also carried out property evaluations and development oftreatment technology for fuel debris, an issue in the decommissioning of the Fukushima
Daiichi Nuclear Power Plant.
 Common cause failure (CCF) has a major effect on the safety of nuclear power plants.
Accordingly, in order to reflect Japan’s operational experiences in a probabilistic risk
assessment, we continued to carry out analyses of the failures of electricalinstrumentation on Japan’s nuclear power plants, and calculated the CCF occurrence ratio
used in risk assessments for the first time in Japan.
 In order to clarify the soundness of fuel claddings when sea water is injected to spent fuelpools as a coolant, we carried out corrosion tests on fuel cladding specimen in synthetic
seawater. This demonstrated that, as a result of the corrosion inhibition effect due to thedeposits formed on the surface of the fuel claddings, there was no major corrosion of thefuel claddings in sea water with high concentrations and at high temperature.
Civil Engineering Research Laboratory:
The laboratory conducted fundamental research on geosphere science, earthquake
engineering, structural engineering and fluid dynamics needed for civil engineering- 13 -

technology and natural disaster measures for power facilities, as well as for backend
management in nuclear fuel cycle and underground energy utilization technologies.
 With the aim of contributing to rational earthquake-resistance design for transformer
substations, we analyzed the transformer bushing damage resulting from the 2011 off thepacific coast of Tohoku Earthquake, and concluded that it was caused by the strong
ground motion exceeding the current design level.
 In order to improve the structural soundness of underground reinforced concrete
structures at thermal and nuclear power plants that experience earthquakes, we developed
a method for evaluating the residual load performance taking into account the corrosionof the reinforcing steel caused by cracks due to the earthquake, based on loading
experiments with full-scale specimens.
Environmental Science Research Laboratory:
The laboratory pursued basic research on the atmosphere, river, coastal and marine
environments, biology, biotechnology and environmental chemistry for the siting and stable
operation of electric power facilities, the establishment of a low-carbon society, and the
reduction of various environmental risks associated with the electric power industry.
 In order to adapt to the amendment of the Environmental Impact Assessment Law and theshortening procedure of assessments for thermal power plants, as well as to support
preliminary studies in the initial stages of planning and assessment, we developed amethod to easily predict the diffusion area of thermal discharge under various discharge
conditions, such as submerged outlet and surface outlet. We also devised methods toevaluate the habitability of the business area for important plants and animals using
information from existing literature on the surrounding area.
 Of the body weight, histopathology of organs and chemistry blood of experimental
animals (rats) exposed to an electromagnetic field stronger than the internationalguideline value over a six-month period showed that intermediate frequency magnetic
fields emitted by household electric appliances do not have a negative effect on health.
Electric Power Engineering Research Laboratory:
The Electric Power Engineering Research Laboratory developed basic and fundamental
technologies related to electric power transmission and distribution facilities, including
electrical insulation, lightning protection and high currents, and also conducted research on
next-generation electric power equipment and power electronics technology.
 Aiming to support electric power companies’ departments such as system operation,transmission and distribution, we added analysis models of electric power equipment andsystem components to the eXpandable Transient Analysis Program (XTAP) in order toeasily and accurately carry out electrical transient analysis of transmission anddistribution lines.

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 Aiming to streamline the maintenance works in transmission and distribution systems, wedeveloped a new method to measure the electromagnetic noise generated from theelectrical discharge observed at degraded area. As the results, we concluded that thedeveloped method can accurately identify the point of origin even if there are interfering
structures in the vicinity.
Energy Engineering Research Laboratory:
The laboratory worked to develop fundamental technology on improved efficiency ofthermal power plants, environmental impact mitigation, facility diagnosis, operations andrepairs, biomass use, energy conversion and utilization, and systems using heat on the demandside.
 We refined the thermal efficiency analysis program EnergyWin that we developed anddeveloped a new operation data analysis system that can quantitatively analyze theimpact that performance changes in the plant equipment have on the plant’s overall
thermal efficiency. This is intended to be used to evaluate plant performance during
facility remodeling and regular inspections at a geothermal power plant.
 In order expand the use of coal ash, we created a prototype of pebbles using a
manufacturing method that we proposed in which shell waste is used as the calcium
source needed to solidify the coal ash, and confirmed that it has the necessary strength foruse in applications such as artificial beach nourishment.
Materials Science Research Laboratory:
The laboratory conducted research on various materials issues which the electric powerindustry is now facing at. Our research covers the understanding the aging mechanism ofstructural materials, the improvements in life prediction and nondestructive evaluation
methods for nuclear and thermal power plants, as well as the development of new materials
used for energy saving device.
 We revised the “Handbook on Feed-water Treatment for Steam Power Plant” (publishedby CRIEPI in 1985), which is used for feed-water treatment and cycle chemistry
management in thermal plants. The revised edition based on the latest operation
experiences and researches concerning cycle chemistry of ultra super critical power
plants and combined cycle plants as well as conventional power plants.
 Assuming the leak of sea water into condensers of nuclear power plants, we examined thecrevice corrosion occurrence and propagation in several types of stainless steels. We havesucceeded in determining the critical chloride ion concentration to cause crevice
corrosion.

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3.

Research Promotion(1) Reformulating Research Strategies by brushing up Research Plans

Given changes in the electric power industry’s operating environment after theearthquake, we clarified the research and development that the electric power industry
should carry out and our own role in this process, and then reexamined our research plansin terms of the electric power industry’s needs, and reformulated research strategies fromthe starting point of electric power technology. The specific process is as follows.
 We organized the key points for the issues that we should address for each supply chain
based on our outlook for the electric power industry overall.
 We clarified the division of responsibilities between CRIEPI and other organizations inresolving issues, and ranked the issues we should address in order of priority. Whensummarizing this, we held research councils in each sector to ensure that we
communicate closely with the electric power industry. This enabled us to consolidate andreflect the requests and plan feedback of management, line divisions, research anddevelopment divisions and frontline of operations such as electric power plants.
 We reexamined all of our research plans, taking into account the need and order ofpreference given the electric power industry’s needs, as well as constraints on researchcosts. We brushed up our research plan so that it would be more appealing to the electric
power industry and reformulated our research strategy.
 As a result of the above, we identified those research subjects that we would focus oneven more, those that we would continue to steadily pursue and those projects that wewould revise and address at a slower pace while still maintaining our fundamental
research strength. This enabled us to identify research topics in which we would
concentrate our resources. We will continue these activities from fiscal 2013 so that we
can further augment our research plans and provide rapid and suitable solutions meetingthe electric power industry’s needs.
(2) Strengthening Research Structure to Produce High-value Results Despite BudgetConstraints
We confirmed the priority and cost effectiveness of all individual research projects
currently underway so that we can continue to produce high-value research output for theelectric power industry and society overall, despite the ongoing budget constraints weface as a result of the electric power industry’s difficult finances. Specifically, we utilized
researchers’ knowledge and experience to the fullest extent by narrowing down thenumber of cases for experiments, substituted for experiments with more advanced
simulation technology and expanded application ranges, and also encouraged researchdone in-house. In this way, we created a research structure that is more resilient even in
the face of declining research funding.

- 16 -

In order to improve the quality of research results and remain accountable regarding ourresearch activities, we had outside experts evaluate our research and conducted researchvalue assessments to quantitatively evaluate the cost effectiveness of our research in orderto fulfill our accountability. In particular, we conducted research value assessments on allof our research subjects planned for fiscal 2013, which ensured that our research plans
were devised with a focus on cost effectiveness.

(3) Steady Pursuit of Research Addressing EarthquakeThe entire institute worked together to steadily pursue research related to the disasterrecovery, while responding to the shift from short-term issues to medium- and long-term
issues as the country recovers from the earthquake. Specifically, we clarified geophysicalphenomena related to active faults, conducted research on tsunami behavior, andexplained the behavior of transmission and distribution facilities such as steel towers
when earthquakes occur. We also formed special research teams to focus on research
related to improving the safety of light water reactors and preservation support.
In terms of technology development to help resolve the Fukushima Daiichi Nuclear
Power Plant accident, we carried out research to solve medium- and long-term issues,
such as stabilizing the power plant and retrieving fuel in close collaboration with thegovernment and the electric power industry. For example, we participated in relevant
meetings between the government and Tokyo Electric Power Co. on medium- and longterm countermeasures.

(4) Maintaining and Improving Research Activities and Problem-solving AbilityIn order to develop a research foundation that can serve as the origins of superb researchskills into the future and contribute to resolutions of the electric power industry’s issues
on a sustainable basis, we moved ahead with the establishment of research basis in the
Yokosuka region and Abiko region, while monitoring cashflow.
Large-scale research facilities were introduced to support the electric power industry’s
technical foundation and to maintain and reinforce our fundamental research capacity.
These include several Power Conditioning System (PCS) test facilities to contribute toresolutions when large volumes of PV are introduced; a testing facility for long CV cableinsulating properties to examine the insulating properties of aged CV cables; laser
electrode topographic atom probe for nanoscale chemical analysis at metal
grainboundaries. Electron Probe Micro Analyzer (EPMA) for surface analysis ofirradiated materials; and an outdoors disconnect switch for use with large-capacity shortcircuit testing facilities that enable a maximum of 100 kA in continuous current.
Moreover, we introduced facilities for experiments on light water reactor fuel cooling
limits to contribute to research improving the safety of light water reactors and a tsunami
physical simulator to be used to evaluate the safety of electric power facilities in the face

- 17 -









We allocated research resources with priority on issues directly facing the electric powerindustry and issues that would maintain or strengthen our basic research skills. In
addition, we fostered our research capacity by allocating resources with consideration forthe diversity of research sectors in order to prepare for future research expansion.
We held cross-cutting workshops within the institute to evaluate changes in the energy
situation after the earthquake and the public’s awareness and values, and as well as toexpand our research in directions that would respond to the resulting risks. We also
searched for the research subjects that the institute should address in advance, in line withthe electric power industry’s supply chain. The results are utilized in formulating researchplans for fiscal 2013.
We systematically facilitated personal interaction tailored to the characteristics of theparties involved and the technology sectors, including joint research at electric power
plants and sending employees to other companies, accepting other companies’ employees
and offering training. We endeavored to strengthen our ability to adapt to actual
conditions in order to reinforce our affiliations with the electric power industry.
As part of our efforts to maintain and improve our functions as a “knowledge pool” madeup of a network of knowledge, human resources, research facilities and domestic andoverseas institutions, we proactively pursued joint research and personal interaction withdomestic and overseas university and research institutions with impressive knowledge(Electric Power Research Institute, Électricité de France, Japan Atomic Energy Agency
and Marine Ecology Research Institute). Such collaboration will enable scientificknowledge to mutually complement each other and to efficiently improve fundamental
research strengths.

(5) Management and Application of Intellectual Property

We reinforced our prior art surveys using patent information and academic literature,generated intellectual assets, and promoted acquisition intellectual property rights andtheir utilization. We also enhanced our risk management for intellectual property andsecurity export control.
Table 3 summarizes the numbers of patents we officially submitted and registered as wellas the number of software applications registered in our institute.
We digitized research reports that have already been published with the aim ofencouraging broad use of intellectual property and augmented our download services for
publicly released materials. We also minimized the duration from the completion of themanuscript of research reports until their issuance by improving the affair efficiency. We
continued to make intellectual property more visible by publishing the fiscal 2011 versionof The Intellectual Property Report.

- 18 -



We not only utilized the intellectual property we have built up to promptly resolve issues
in the electric power industry, but also worked to spread technology to businessmen
working on the frontlines of industry through technology exchange courses andtechnology lectures. Moreover, we provided patents and software to the public andencouraged its use.
Table 4 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 ofspecifications, standards and technical guides for the energy and environment.
Table 5 highlights major contributions to the formation of codes, standards and technicalguides.

(6) Promotion of Funded Research







Applying CRIEPI’s fundamental research skills, we proactively engaged in funded
research that met the needs of the electric power industry and contributed to theresolution of problems faced by the electric power industry. In particular, we prioritized
the allocation of research resources to urgent issues occurring during this fiscal periodthat have tended to increase in recent years, such as the assessment of natural disasters
and accidents for power distribution facilities and power generation facilities, and rapidly
and accurately provided solutions.
We received government funding for research that helped to clarify issues in the electric
power industry and would lead to appropriate technical policies.
Table 6 shows the main research projects for which CRIEPI received government funding.
We also ran the PD Center, which gives certification exams for experts in ultrasonicinspection working with nuclear power plant components, as well as the High Power
Testing Laboratory, which performs short-circuit tests on electric power equipment.

- 19 -

Table 1: Number of Reports
Research reports, etc.

Funded research

Total

Socioeconomics

32

3

35

Environment

17

19

36

Customer energy services

24

7

31

Power delivery

52

37

89

Nuclear power generation

61

39

100

Fossil fuel power generation

25

17

42

New energy

9

10

19

Information & communication

21

6

27

24

14

38

Advanced basic technologies

6

6

12

Total

271

158

429

(Number in previous fiscal year)

464

131

595

Construction and maintenance ofelectric power facilities

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

143 (31)

Environment

150 (34)

Customer energy services

108 (20)

Power delivery

220 (43)

Nuclear power generation

336 (85)

Fossil fuel power generation

139 (42)

New energy

61 (9)

Information & communication

45 (18)Construction and maintenance of electric power facilities

163 (46)

Advanced basic technologies

181 (50)

Others13 (5)

Total

1,559 (383)(Number in previous fiscal year)

1,407 (383)- 20 -

Table 3: Number of applications and registrations of patent, and software
PatentSoftware Registration

Application

Registration

Socioeconomics

0

0

2

Environment

11

23

3

Customer energy services

7

11

9

Power delivery

13

13

24

Nuclear power generation

18

11

5

Fossil fuel power generation

23

18

5

New energy

12

6

4

Information & communication

3

7

1

7

7

8

Advanced basic technologies

15

25

0

Others

10

8

6

Total

119

129

67

(Number in previous fiscal year)

97

170

92

Construction and maintenance ofelectric power facilities

Note: Number of patents held as of end-FY 2012: 707

Table 4: Number of licensed patents and licensed software applications
Total(Number in previous fiscal year)

Number of licensed patents

20

11

Number of licensed software applications

357

299

- 21 -

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

Code, Standard, Technical Guideline, etc.

Organizations and Groups Concerned

Guidelines on environmental impact assessment

Ministry of the Environment

methods related to thermal power plants’ replacement
JEAC9701-2012 Grid connection regulations

Japan Electric Association

JEAC7001-2012 Electric power distribution regulations

Japan Electric Association

AESJ-SC-P005: 2012 Implementation standards for

Atomic Energy Society of Japan

aged nuclear power plants: 2012 (Supplement 3)
Concrete standards specification report formulated forJapan Society of Civil Engineers

2012 (basic principles version and design version)
Energy Conservation Law’s Standards of Judgment for

Institute for Building Environment and Energy

Residential Construction Clients

Conservation

JSME S NA1-2012 Codes for Nuclear PowerThe Japan Society of Mechanical Engineers

Generation Facilities: Rules on Maintenance (2012version)JIS C8715-1 Secondary lithium cells and batteries forBattery Association of Japanuse in industrial applications—Part 1: Tests andJapanese Standards Association

requirements of performance- 22 -

Table 6 Main research commissioned by national government

Name

Source of commission

Research subject nameused at CRIEPI

Fiscal 2012: Study on recycled fuel resource storage

Ministry of Economy,

Development of long-term

technology

Trade and Industry

storage management(testson

long-termsoundnessoftechnology for spent fuelintermediate storage facility)
Fiscal 2012 project to establish technical foundation

Ministry of Economy,

Nuclear reactor system

for more advanced safety measures for nuclear

Trade and Industry

safetyDevelopment of computer simulation of structural

Ministry of Education,

Fuel, reactor coretransformation analysis techniques for nuclear fuelCulture, Sports, Science

reactorsystems

used

for

power

generation(establishment of technical foundation for functional
assessment of vent filters)

and Technology
Evaluation of validity and predictability of air quality

Ministry of theDevelopment ofmodeling for urban PM2.5 in Japan’s cities

Environment

techniques forcomprehensive impact
assessment of thermal
power on atmosphericenvironment

Development of elemental technology for solid

New Energy and Industrial

oxidizer

Technology Development

fuelbatterysystems;

Researchanddevelopment for fundamental and shared issues;

Energy conversion

Organization

establishment of durable evaluation methods
Project on revolutionary coal gasification power

New Energy and Industrial

More advanced IGCC andgenerating plant with zero emissions; Basic researchTechnology Development

establishment of low-

project on revolutionary gasification technology;

Organization

carbon technology

Development of pressure heat method for carbonic

National Institute of

Geosphere sciencesacid gas slurry

Advanced Industrial

Development of CO2 capture next-generation IGCC
technology

Science and Technology- 23 -

II. Administration
1.

Thorough cost cutting to adapt to increasingly harsh operating environmentWe endeavored to cut operating costs further by closely reviewing our administrative
activities and, based on our findings, deciding to suspend projects, revise specifications
for projects or partially carry out projects in-house, taking into account the need to ensure
the safety of operations and maintain high-quality research. In particular, we postponed
environmental management that was not a high priority or very urgent, such as repairs toouter walls of buildings, road repairs, upgrades to laboratories’ air conditioning andheating systems, and improvements to electric facilities. As a result, we were able toreduce costs across all business activities by approximately 10 %.
We cut costs and optimized subcontracting operations by ensuring that bidding wascompetitive in outsourcing or making purchases. As a result, the competition ratio basedon contract amounts in commissions and purchases rose about 13 points over the previous
fiscal year to about 39 %.
While we utilize assets effectively, we streamlined fixed assets by proactively retiring anddisposing of assets we did not plan to use. This not only reduced maintenance costs andfixed asset taxes, but also secured the space needed for future research. Moreover, we
continued preparations to sell sites of welfare program facilities while monitoring realestate market conditions.
In addition to a 20 % cut in executive salaries from the start of the fiscal year, we decided
to make across-the-board cuts to managerial employees’ annual salaries and also reduce
the annual salaries of 30 % of managerial employees based on performance. We also
lowered the bonuses of general employees. We also decided to take steps to reduce
welfare costs, such as closing directly-run resort facilities and revising the cafeteria plan
program.







2.




Establishing research bases to strengthen research foundation
We continued to develop infrastructure such as roads, power sources and communications
needed for the new large-scale research facilities in the Yokosuka region, where we arebuilding a new laboratory that will become the hub for research on energy and industrial
technology. We limited the specifications for the power source infrastructure work to thebare minimum to reduce the budget, and postponed the work until fiscal 2013 in light of
the laboratory completion date and the start of operations in the research facilities.
We devised a basic concept for the specific facility development plan for the Abikoregion, which is to be the hub of natural and environmental science research. This
concept projects future needs and reorganizes research facilities in a rational and efficientway, while taking into account changes in the management environment.

- 24 -





3.




4.






We brushed up our plan to move our research facilities in the Komae area to the
Yokosuka area based on the refinements made to our research plans. We also continued
preparations to sell some land (approximately 10,000 ㎡) in order to raise the funds
needed to build this research base, such as the examination of the relevant regulations.
We began to consider specific organization and systems for the transfer andreorganization of administrative and management divisions. This is intended to streamline
administration, cut operating costs and strengthen the research support system in line with
our policy to shift to two rebuilt research bases.
Enhancing public recognition and reputation through strategic informationtransmission and public relations activities
We gave interviews and contributed material to mass media outlets and issued somepublications such as “CRIEPI Topics” in order to introduce our wide-ranging and expert
information and research results. In particular, we sent out information on nuclear power
safety, stable electric power supply and deregulation of the electric power industry.
Moreover, in May 2012 we held a forum on restoration and recovery efforts after theearthquake to follow up on the first forum held the previous fiscal year. This was anopportunity to systematically introduce some of our institute’s research activities
addressing earthquake and tsunami damage.
We exchanged information even more closely with the electric power industry andexternal experts in order to accurately understand external conditions, such as trends inthe electric power industry and society, and ascertain opinions of and requests for CRIEPI.
Moreover, we shared the information and knowledge acquired through these means
within CRIEPI, to develop public relations strategies and carry out other operations,deepen employees’ knowledge, and raise consciousness of issues.
Hiring, training and utilizing the employees as the key to maintaining andexpanding the organization
As part of our efforts to strengthen our personal support function, we offered ongoing
opportunities for all employees to talk one-on-one with the Human Resources Divisionand identify each employee’s interest and future objectives and desires for their research
and work. We endeavored to ensure that this led to the assignment of the right person for
the right job.
We set up a new deputy associate vice president position that quickly rewards employees
who are expected to aid managerial decision-making about research operations. Thismeasure to raise motivation focuses on selecting talented employees for higher positions,for example to train the next generation of leaders.
As a means of hiring research staff according to our research operations we considered a
new framework for special contract researchers in which the employment contract period- 25 -

5.










Ensuring sound and rigorous operations
Through the various activities described in this report, we steadily implemented a public
interest expenditures plan upon receiving authorization for the transfer to the status ofgeneral incorporated foundation.
With the transition to a general incorporated foundation, we adopted procedures forsettling public interest purpose assets and accounting standards for new public interest
corporations (20 year benchmark), submitted notices on changes in corporation categories
related to corporate taxes, and submitted notices regarding corporate inhabitant taxes.
After becoming a general incorporated foundation, we established regulations oncompensation for vice-presidents, auditors and councilors and Board of Councilors
management rules. We also audited the status of the operation of our internal governancesystem in terms of the appropriateness, effectiveness and efficiency of operations,educated officers on compliance and carried out risk management activities for theorganization.
We considered measures to further reduce risks, such as encryption and network
monitoring, to enhance the information security that is so crucial for research institutes.
These measures were tested and are expected to be completely introduced in fiscal 2013.
Please refer to the next page regarding our system for ensuring that directors comply withlaws and articles of incorporation and our system ensuring appropriate operations.

- 26 -

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 in accordance withlaws and articles of incorporation as well as decisions by the Board of Councilors. In addition, Vice Presidents’
job performance will be supervised.
A committee concerned with management and research strategies and consisting of Vice Presidents and otherthe executives carrying out operations (below, “Management Committee”) will be held regularly and important
issues involved in conducting operations will be discussed with a flexible and multidisciplinary approach.
The operations that executives are in charge of performing will be clarified and business will be conducted in
an appropriate and prompt manner.

Responsibilities and authority in exercising professional duties for Vice Presidents will be clarified in internal
regulations, and efforts made to ensure that Vice President and employees perform their jobs appropriately andefficiently.

Minutes for important committees such as the Board of Councilors, Board of Directors and Management
Committee and other information related to Vice Presidents’ execution of professional duties will beappropriately prepared, saved and managed in accordance with the articles of incorporation and internal
regulations.

An Internal Audit Division will be set up under the jurisdiction of the President and the job performance ofeach division will be regularly monitored in order to ensure that operations are conducted appropriately andefficiently.
(2) System for risk management
A risk management system and internal regulations will be established.

Risks related to business activities in carrying out professional duties will essentially be managed with a selfgoverning approach, based on laws and internal regulations.

General risk management will be carried out by the Internal Audit Division in a centralized manner, withaudits 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 and information
system will be stipulated in internal regulations, and disaster prevention training will be carried out.
(3) Management system for complianceAction guidelines for compliance will be established and put into practice with the Vice Presidents taking thelead. In addition, employees will receive ongoing training on the prevention of improprieties via CRIEPI’s
website for internal users.

A whistleblowing hotline will be permanently established with both internal and external access so that
employees can discuss issues anonymously.
The Internal Audit Division will audit employees’ performance of professional duties in terms of complianceand report the results to the Management Committee. Executives will make the necessary improvements inlight of the audit results.
(4) Audit system
The General Auditor will audit Vice Presidents’ and other the executives’ performance of professional duties toensure that they conform to the law and are appropriate by attending important meetings such as the Board of
Directors meetings and perusing important documents. A full-time auditor will be appointed.

The Internal Audit Division will provide staff to assist in the auditor’s work. During the periods when the
General Auditor’s support staff are working exclusively with the General Auditor, they will not receive
instructions or guidance from executives, and the General Auditor’s wishes will be respected as regards
transfers and evaluations.
When Vice Presidents and/or employees discover anything that could significantly harm CRIEPI or detect actsthat 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.
- 27 -

III. Workforce
We enhanced the capacity of current staff, assigned staff to appropriate positions andcarefully selected special contract employees in line with our basic policy to reduce thecurrent staff of about 840 as of the start of fiscal 2012 to about 800 by the end of fiscal 2015.
In addition, we considered specific measures such as halting the employment of term-limited
contract employees in order to achieve this goal as soon as possible.
The workforce as of March 31, 2013, was as follows.
Item

Numbers

Percentage distribution (%)

726*1

88.1

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

116

16.0

(2) Civil engineering and construction

95

13.0

(3) Mechanical

97

13.4

(4) Chemistry

68

9.4

(5) Biology

59

8.1

(6) Nuclear engineering

45

6.2

(7) Environmental science

42

5.8

(8) Information & communication

40

5.5

(9) Socioeconomics

47

6.5

(10) Research support & management

117

16.1

99

12.0

825*2

100

2. Office work
Total

- 28 -

IV．Meetings held
1.

Board of Councilors
Date held
June 15, 2012
(No. 1)

Agenda
1. Approval of report on research activities in FY2011
2. Approval of report on settlement of accounts in FY2011
3. Decision on total compensation for vice presidents andgeneral auditors
4. Decision on regulations on compensation for councilors andgeneral auditors
5. Decision on indemnity liability limit for external vicepresidents and general auditors
6. Election of councilors and vice presidents

August 23, 2012

1. Election of councilors, vice presidents and general auditors(No. 2)January 4, 2013

1. Decrease in ongoing donations in FY2012 from Tohoku(No. 3)

Electric Power Company and Tokyo Electric Power
Company
2. Decrease in ongoing donations in FY2012 from nineelectric utility companies
3. Changes to FY2012 research plans
4. Changes to FY2012 statement of budget

March 15, 2013
(No. 4)

1. Decision on Board of Councilors management rules
2. Approval of Research Plan in FY2013
3. Approval of Statement of Budget in FY2013

2.

Board of Directors
Date held
May 24, 2012
(No. 1)

Agenda
1. Reports on research activities in FY2011
2. Reports on settlement of accounts in FY2011
3. Report on performance of job functions by President,
Executive Vice President, and Managing Directors
4. Necessary documentation related to settlement of charitablepurpose assets
5. Total compensation for compensation for councilors and-29-general auditors (proposal)
6. Regulations on compensation for councilors and general
auditors (proposal)
7. Regulations on compensation for councilors
8. Indemnity liability limit for external vice presidents andgeneral auditors (proposal)
9. Election of councilors and vice presidents (proposal)
10. Division of responsibilities for Executive Vice President,
and Managing Directors
11. Election of important employees
12. Decision to convene regular Board of Councilors
August 7, 2012

1. Election of councilors, vice presidents and general auditors(No. 2)
December 5, 2012

1. Decrease in ongoing donations in FY2012 from Tohoku(No. 3)

Electric Power Company and Tokyo Electric Power
Company
2. Decrease in ongoing donations in FY2012 from nineelectric utility companies
3. Changes to FY2012 research plans
4. Changes to FY2012 statement of budget

March 7, 2013

1. Research plan in FY2013 (proposal) 2013

(No. 4)

2. Statement of budget in FY2013 (proposal)
3. Report on performance of job functions by President,
Executive Vice President, Standing Director and Managing
Directors
4. Setting large loan amounts
5. Board of Councilors management rules (proposal)
6. Decision to convene Board of Councilors-30-

Settlement of Accounts

Outline of Settlement of Accounts
Net property at the end of fiscal 2011 was 36.84 billion yen, 710 million yen lower thanthe end of the previous fiscal year.
1.

Financial statements(1) Assets condition

Total assets amounted to 50.53 billion yen. This consisted of 4.44 billion yen incurrent assets, 12.77 billion yen in special assets and 33.31 billion yen in other fixed
assets.

Special assets consisted of 900 million yen in fixed assets funded by designated net
assets, 3.43 billion yen in special assets for retirement lump sum grants benefits
package allowance, and 7.7 billion yen in special assets for research facility
acquisition allowance.

Other fixed assets consist of 8.69 billion yen in land, 9.35 billion yen in buildings,
2.49 billion yen in ancillary buildings and 6.42 billion yen in machine andequipment.

(2) Liabilities condition
Liabilities totaled 13.68 billion yen. This consisted of 3.9 billion in current liabilities
and 9.78 billion yen in fixed liabilities.



Fixed liabilities consisted of 9.38 billion yen in accrued retirement benefits for
employees.

(3) Net assets condition

Net assets amounted to 36.84 billion yen at the end of the fiscal year, consisting of
35.94 billion yen in general net assets and 900 million yen in designated net assets.

2.

New assets increase/decrease calculation sheet(1) Changes in general net assets
 Ordinary revenue was 28.83 billion yen. Of this, current donations decreased to
26.27 billion yen as a result of a reduction in current donations from Tohoku ElectricPower Company and Tokyo Electric Power Company. Revenue from research
projects funded by the government fell to 1.6 billion yen.
Ordinary expenditure totaled 28.86 billion yen. This can be attributed to 26.88
billion in business activity expenditures related to research projects and 1.98 billion
yen in administrative expenditures related to head office operations.



Project costs consisted of 10.55 billion yen in personnel expenditures and 16.33
billion yen in expenditures. Administrative expenses consisted of 1.16 billion yen inpersonnel expenditures and 820 million yen in expenditures.

As a result, ordinary revenue fell 300 million yen.

- 31 -

The nonrecurring change was a net decrease of 390 million yen, primarily due tolosses on sales related to the upgrade of large computers.
As a result, the current change in general net assets was a net decrease of 420 million
yen in the current fiscal year.

(2) Change in designated net assets
The change in designated net assets was a net decrease of 280 million yen, due todepreciation of special assets funded by designated net assets.
3.

Other
CRIEPI became a general incorporated foundation in fiscal 2012. Accordingly, thePublic-Service Corporation Accounting Standard (October 14, 2004, understood thing at theconcerned government ministries meeting related to teaching and direction of public-service
corporations) was employed.

- 32 -

I. Financial Statements
Balance Sheet
As of March 31, 2013
Account

Current
fiscal year

Previous
fiscal year

(Unit: yen)
Increase/decrease

I. Assets section
1. Current assets
Cash and deposit

3,198,576,076――

4,128,621――

Account receivable

1,107,786,069――

Suspense payable

125,794,742――

Advance payment

11,929,723――

4,448,215,231――

Securities

Total current assets
2. Fixed assets(1) Special assets
Buildings

258,033,100――

2,621,757――

Ancillary buildings
Structures

2,672,890――

Machine and equipment

848,362,479――

Tools and furniture

22,315,542――

Lump-sum depreciable assets

1,103,211――

Intangible fixed asset

2,370,580――

Special assets for retirement lump sum grants benefits
package allowance

3,435,900,000――

Special assets for research facility acquiring allowance

7,700,000,000――

500,000,000――

12,773,379,559

―

―

Land

8,698,562,302――

Building

9,350,481,451――

Ancillary buildings

2,493,596,502――

Structure

1,236,471,797――

Machine and equipment

6,420,885,983――

Tools and furniture

2,095,109,876――

12,313,186――

Lump-sum depreciable assets

40,826,810――

Intangible fixed asset

538,429,909――

2,387,225,600――

Long-term prepaid expenses

41,074,011――

Total other fixed assets

33,314,977,427――

Total fixed assets

46,088,356,986――

Total assets

50,536,572,217――

Accrued liability

3,261,954,053――

Money entrusted

96,862,107――

Advance receipt

193,116,472――

Accrued bonus

355,000,000
3,906,932,632

―

―

―

―

Special assets for special project reserves
Total special assets(2) Other fixed assets

Rolling stock and vehicles

Construction in process accountII. Liability section
1. Current liability

Total current liability
2. Fixed liabilities
Allowance for retirement benefits for directors
Accrued retirement benefits for employees
Total fixed liabilities
Total liabilities

399,000,000――

9,383,000,000――

9,782,000,000――

13,688,932,632――- 33 -

Current
fiscal year

Account

Previous
fiscal year

Increase/decrease―

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

439,096,146―

Cash subsidy

359,144,296――

105,551,220
903,791,662――

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

2. General net assets(Including appropriation to special assets)
Total net assets

903,791,662―)(

35,943,847,923(

8,433,687,897
36,847,639,585

―

―
)

(

―
)

(

―
―

―

)

(

―
―

Total of liability and net assets――
50,536,572,217
Note: The Public Service Corporation Accounting Standard (April 11, 2008; revised on October 16, 2009 by the Cabinet Office’s Public
Interest Corporation Commission) was adopted in the current fiscal year, so the figures for the previous fiscal years lack continuity with thisfiscal year’s data. Accordingly, we have not provided data for the previous fiscal year, in line with the Operational Guidelines for PublicService Corporation Accounting Standards (April 11, 2008; revised on October 16, 2009 by the Cabinet Office’s Public Interest Corporation
Commission).

- 34 -)―)

Net Assets Increase/Decrease Calculation Sheet
From Aril 1, 2012 to March 31, 2013
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

26,279,193,000
1,993,405,373)(

1,604,054,329
389,351,044

Funded research operating revenue
Other operating revenue([4] Transfer from designated net assets

132,464,361
7,924,914
86,093,236
38,446,211
427,910,683

Total current revenue

28,832,973,417[3] Other revenue
Interest received
Facility usage fee received
Miscellaneous revenue)([1] Project cost(

Salary and benefit
Retirement benefit expenditureWelfare expenditure(

Expenditure
Supplies expenses
Printed material expenses
Fuel, light, and water expenses
Expenses for commission
Collaboration research contribution
Repair expenses
Rental rate
Tax and public charge
Travel and transport expenses
Communication and transportation
expenses
Other expenditure
Depreciation allowance

10,554,932,001
7,385,550,520
2,185,853,040
983,528,441)

16,331,472,915
1,551,266,522
389,732,830

)

(

(

(

Salary and benefit
Retirement benefit expenditureWelfare expenditure
Allowance for retirement benefits for
directors transfer
Expenditure
Supplies expenses

(

)

(

)

(

―
―
―
―
―
―
―

―
―
―
―
―
―

―
―
―
―
―
―

92,366,634――

540,555,971
4,970,720,217

―
―
―
―

―
―

)

(

―
―
―
―
―

820,784,224
9,853,753
47,104,504
34,654,296
148,730,694
12,300,538
369,436,177
11,476,455

(

―
―
―
―
―
―
―
―

)

(

―
―
―
―
―

)

(

―
―

Travel and transport expenses
Communication and transportation
expenses

25,753,331―

10,119,664――

Other expenditure

111,739,142――

Depreciation allowance

39,615,670――

Fuel, light, and water expenses
Expenses for commission
Repair expenses
Rental rate
Tax and public charge- 35 -

)

)

)

―

―
―
―
―
―
―
―

Printed material expenses

)

―
―

―
)

)

―
―
―

5,255,239,229
494,983,544
1,240,933,863
283,497,208
91,210,730
656,743,357

97,000,000
(

―
―
―
―
―
―
―

)

―
―
―
―
―
―
―

―

1,160,323,775
153,450,000
602,898,980
159,482,836
147,491,959

Board members’ salary

―
―
―
―
―
―
―
―
―

―
―

―

[2] Administrative expenses
Personnel expenditure(764,222,810

26,886,404,916

Subtotal of project cost)―(2) Current expenditure
Personnel expenditure――)Account
Subtotal of administrative expenses
Total current expenditure
Current ordinary increase/decrease

Current fiscal year

Previous fiscal year

1,981,107,999―

Increase/decrease―

28,867,512,915△34,539,498

―
―

―
―

21,140,000――

205,938
6,137,246
27,483,184

―
―
―

―
―
―

419,245,269――

2. Nonrecurring increase/decrease section(1) Nonrecurring profit[1] Fixed asset donated profit
Facility donated profit[2] Gain from sale of fixed assets
Gain on sale of facility[3] Transfer from designated net assets
Total nonrecurring profit(2) Nonrecurring expenses[1] Loss on sale of fixed assets
Loss on sale of tools and furniture419,245,269――

Current nonrecurring increase/decrease
Current ordinary net asset
increase/decrease△391,762,085――△426,301,583――

Ordinary net asset beginning balance

36,370,149,506――

Ordinary net asset final balance

35,943,847,923――

128,148,715――

Facility donated profit

22,104,699――[3] Transfer to ordinary net assets
Current designated net assets
increase/decrease

434,047,929――△283,794,515――

1,187,586,177――

903,791,662――

Total nonrecurring expenses*1

II. Designated net asset increase/decrease section[1] Cash subsidy received
Subsidy received[2] Fixed asset donated profit

Designated net assets beginning balance
Designated net assets final balance

36,847,639,585――
Note 1: The Public Service Corporation Accounting Standard (April 11, 2008; revised on October 16, 2009 by the Cabinet Office’s Public
Interest Corporation Commission) was adopted in the current fiscal year, so the figures for the previous fiscal years lack continuity with thisfiscal year’s data. Accordingly, we have not provided data for the previous fiscal year, in line with the Operational Guidelines for PublicService Corporation Accounting Standards (April 11, 2008; revised on October 16, 2009 by the Cabinet Office’s Public Interest Corporation
Commission).
Note 2: CRIEPI became a general incorporated foundation on April 1, 2012. Since fundamental assets were not stipulated in the articles ofcorporation, fundamental assets ceased to exist when CRIEPI made this transition and fundamental assets (designated net assets) wererecorded as other fixed assets (general net assets). As a result, the designated net assets beginning balance decreased by 7,000,000 yen andthe ordinary net asset beginning balance increased by the same amount compared to the end of the previous fiscal year.
III. Net assets final balance- 36 -*2

Breakdown of Net Assets Increase/Decrease Calculation Sheet
From Aril 1, 2012 to March 31, 2013
(Unit: yen)
Project total

Account

Corporate total

Ongoing projects (*)

Total

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

26,279,193,000
1,993,405,373

26,279,193,000)(01,604,054,329
389,351,044

Funded research operating revenue
Other operating revenue([4] Transfer from designated net assets

132,464,361
7,924,914
86,093,236
38,446,211
427,910,683

Total current revenue

28,832,973,417[3] Other revenue
Interest received
Facility usage fee received
Miscellaneous revenue

)

(

0
(

37,683,572
7,924,914
4,254,287
25,504,371
0
26,316,876,572)

1,604,054,329
389,351,044

0)

26,279,193,000
1,993,405,373)(

132,464,361
7,924,914
86,093,236
38,446,211
427,910,683)

28,832,973,417(2) Current expenditure[1] Project cost
Personnel expenditure(

Salary and benefit
Retirement benefit expenditureWelfare expenditure(

Expenditure
Supplies expenses
Printed material expenses
Fuel, light, and water expenses
Expenses for commission
Collaboration research contribution
Repair expenses
Rental rate
Tax and public charge
Travel and transport expenses
Communication and transportation expenses
Other expenditure
Depreciation allowance

10,554,932,001
7,385,550,520
2,185,853,040
983,528,441)

16,331,472,915
1,551,266,522
389,732,830

)

(

(

(

10,554,932,001
7,385,550,520
2,185,853,040
983,528,441)(

16,331,472,915
1,551,266,522
389,732,830)

764,222,810

0764,222,810

5,255,239,229
494,983,544
1,240,933,863
283,497,208
91,210,730

0
0
0
0
0

656,743,357

0

5,255,239,229
494,983,544
1,240,933,863
283,497,208
91,210,730
656,743,357

92,366,634

0

92,366,634

540,555,971
4,970,720,217

00
0

540,555,971
4,970,720,217

26,886,404,916

Subtotal of project cost

0 )
0
0
0
0 )
0
0

26,886,404,916[2] Administrative expenses
Personnel expenditure

(

0
0
0
0
0

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

1,160,323,775
153,450,000
602,898,980
159,482,836
147,491,959

0

)

(

1,160,323,775
153,450,000
602,898,980
159,482,836
147,491,959
97,000,000

97,000,000

Tax and public charge

0
0
0
0
0
0
0
0

Travel and transport expenses

0Communication and transportation expenses

0

10,119,664

10,119,664

Other expenditure

0111,739,142

111,739,142

Expenditure(

Supplies expenses
Printed material expenses
Fuel, light, and water expenses
Expenses for commission
Repair expenses
Rental rate

- 37 -)(

820,784,224 )
9,853,753
47,104,504
34,654,296
148,730,694
12,300,538
369,436,177
11,476,455
25,753,331)(

820,784,224
9,853,753
47,104,504
34,654,296
148,730,694
12,300,538
369,436,177
11,476,455
25,753,331)

Account

Project total
Ongoing projects (*)

Corporate total

Total

Depreciation allowance

039,615,670

39,615,670

Subtotal of administrative expenses

0

1,981,107,999

1,981,107,999

26,886,404,916△24,370,308,071

1,981,107,999
24,335,768,573

28,867,512,915△34,539,498

21,140,000

021,140,000

205,938
6,137,246
27,483,184

000

205,938
6,137,246
27,483,184

413,836,642

5,408,627,627

419,245,269

413,836,642

5,408,627,627

419,245,269△386,353,458△5,408,627,627△391,762,085△24,756,661,529

24,330,359,946

Total current expenditure
Current ordinary increase/decrease
2. Nonrecurring increase/decrease section(1) Nonrecurring profit[1] Fixed asset donated profit
Facility donated profit[2] Gain from sale of fixed assets
Gain on sale of facility[3] Transfer from designated net assets
Total nonrecurring profit(2) Nonrecurring expenses[1] Loss on sale of fixed assets
Loss on sale of tools and furniture
Total nonrecurring expenses
Current nonrecurring increase/decrease
Current ordinary net asset increase/decrease△426,301,583

Ordinary net asset beginning balance

36,370,149,506

Ordinary net asset final balance

35,943,847,923

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

128,148,715

0

128,148,715[2] Fixed asset donated profit
Facility donated profit[3] Transfer to ordinary net assets
Current designated net assets increase/decrease

22,104,699

0

22,104,699

434,047,929

0

434,047,929△283,794,515

0△283,794,515
1,187,586,177

Designated net assets beginning balance

903,791,662

Designated net assets final balance

36,847,639,585(*) Content of ongoing projects: Research, surveys, and tests on electric power technology and the economy and general coordination of theaforementioned.

III. Net assets final balance- 38 -

Notes for Financial Statements
1. Transition to general incorporated foundation
CRIEPI became a general incorporated foundation on April 1, 2012.
2. Important accounting policy
CRIEPI adopted the Public-Service Corporation Accounting Standard (April 11, 2008,
revised on October 16, 2009; Cabinet Office’s Public Interest Corporation Commission).
(1) Assessment standard and assessment method of valuable stock certificates
For other valuable stock certificates without market price, the cost method by the movingaverage 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.
Additional information:
As a result of revisions to retirement pension regulations, CRIEPI shifted from its
previous retirement pension program to a defined benefit corporate pension system basedon the Defined-Benefit Corporate Pension Act (Act. No. 50 of 2001) on April 1, 2012. As- 39 -

a result of this transition, past service costs decreased 2,625,311,902 yen. Past service
costs are amortized using the straight-line depreciation method for a five-year period
from the fiscal year in which they were incurred. In the current fiscal year, 525,062,381
yen in past service costs were amortized.
(4) Account processing of consumption tax, etc.
Account processing of consumption tax, etc. is controlled by the before tax method.
3. Change in important account policy
There were no changes in important account policy.
4. Change in designated assets and balance
The change in designated assets and balance are as follows.
Balance at the endof previous period
278,386,661

Current increased
amount0

Current decreased
amount20,353,561(Unit: yen)
Balance at the endof current period
258,033,100

3,941,228

01,319,471

2,621,757

3,359,079
1,217,615,256

0
5,606,000

686,189374,858,777

2,672,890
848,362,479

36,921,060

12,880,499

27,486,017

22,315,542

Lump-sum depreciable assets

665,284

1,378,700

940,773

1,103,211

Intangible fixed assets

772,436

2,068,000

469,856

2,370,580

3,435,900,000

003,435,900,000

7,900,000,000

2,200,000,000

2,400,000,000

7,700,000,000

0500,000,000

0500,000,000

12,877,561,004

2,721,933,199

2,826,114,644

12,773,379,559

Subject
Building
Ancillary buildings
Structures
Machine and equipment
Tools and furnitureSpecial assets for reserves forlump-sum retirement benefits
Special assets for acquisition ofresearch facilities
Special assets for reserves for
projects
Total- 40 -

5. Breakdown of funding for fixed assets
The funding for fixed assets can be broken down as follows.
(Unit: yen)
Balance at the endof current period(Including
appropriation fromdesignated net asset)

258,033,100(258,033,100)(Including
appropriationfrom general net
asset )-

Ancillary buildings

2,621,757(2,621,757)--

Structures

2,672,890(1,638,431)(1,034,459)-

Machine and equipment

848,362,479(615,709,041)(232,653,438)-

Tools and furnitureLump-sumdepreciable
assetsIntangible fixed assets
Special assets for reserves forlump-sum retirement benefits
Specialassetsforacquisitionofresearch
facilities
Special assets for reserves
for projects
Total

22,315,542(22,315,542)--

1,103,211(1,103,211)--

2,370,580(2,370,580)--

3,435,900,000--

7,700,000,000-(7,700,000,000)-

500,000,000-(500,000,000)-

Subject
Building

12,773,379,559(903,791,662)

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

- 41 -(8,433,687,897)

Including liability
relating item)-(3,435,900,000)(3,435,900,000)

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

Subject
Special asset
Building
Ancillarybuildings
Structures
Machine andequipment
Tools andfurniture
Lump-sumdepreciable assets
Intangible fixed
asset
Other fixed asset
Building
Ancillarybuildings
Structures
Machine andequipment
Tools andfurniture
Rolling stock andvehicleLump-sumdepreciable assets
Intangible fixed
asset
Total

(5,703,412,272)
621,962,762

Accumulated
depreciation(4,565,932,713)
363,929,662(Unit: yen)
Balance at the end of current
period(1,137,479,559)
258,033,100

131,084,924

128,463,167

2,621,757

28,268,470

25,595,580

2,672,890

4,836,718,324

3,988,355,845

848,362,479

80,501,272

58,185,730

22,315,542

1,930,920

827,709

1,103,211

2,945,600

575,020

2,370,580(100,237,656,554)
18,852,619,929(78,049,541,040)
9,502,138,478(22,188,115,514)
9,350,481,451

12,295,936,707
5,847,335,878

9,802,340,205
4,610,864,081

2,493,596,502
1,236,471,797

47,833,443,063

41,412,557,080

6,420,885,983

11,007,128,015

8,912,018,139

2,095,109,876

78,608,321

66,295,135

12,313,186

112,107,487

71,280,677

40,826,810

4,210,477,154(105,941,068,826)

3,672,047,245(82,615,473,753)

538,429,909(23,325,595,073)

Acquisition value- 42 -

8. Claimable assets, balance of allowance for doubtful debts at the end of period, andbalance of claimable assets at the end of period
Claimable assets, balance of allowance for doubtful debts at the end of period, andbalance of claimable assets at the end of period are as follows.
(Unit: yen)
Subject
Account receivable
Housing loans and welfare loans
among special assets of accrued
retirement benefits
Total

1,107,786,069

Balance ofallowance for
doubtful debts at
the end of period
020,153,00001,127,939,069

0Claimable assets

Balance of claimableassets at the end of period
1,107,786,069
20,153,000
1,127,939,069

9. Contingent liabilities such as guarantee liabilities
A guarantee liability to employees housing loans is 1,993,480,973 yen.
10. Breakdown of held-to maturity bond certificates and book values, actual values, andappraisal profit or loss
No held-to-maturity bond certificates are recorded.

- 43 -

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

Deliverer

Balance at theend of period

Current increase

Current decrease

Balance at the endof period

Describing
division inbalance sheet

Subsidies・ Subsidy for projects assessing
impact on power systems ofmass adoption of destributed
generation
・ Project to promote theintroduction of solar power
generation system at CRIEPI’s
laboratories in the Yokosuka areain fiscal 2008

Ministry of
Economy, Tradeand Industry

327,397,314

0

116,880,818

210,516,496

Designatednet assets

New Energy andIndustrial
Technology
Development
Organization

12,795,979

0

1,625,089

11,170,890

Designatednet assets

・Project to promote introduction
regional new energy in fiscal
2009

New Energy
PromotionCouncil

2,910,436

0427,834

2,482,602

Designatednet assets

013,339,999

13,339,999

0

-

0

2,107,556

2,107,556

0-01,958,695

1,958,695

0-06,930,113

6,930,113

0-02,358,000

2,358,000

0-0995,839995,8390-

208,871,399

86,933,400

163,084,940

132,719,859

Designatednet assets

329,2190

205,761

123,458

Designatednet assets

2,516,553

2,644,617

4,166,691

994,479

Designatednet assets

0

10,880,496

10,880,496

01,364,359

0

227,847

1,136,512

556,185,259

128,148,715

325,189,678

359,144,296

・ Applicability
surveyofmanufacturing technology for fly
ash concrete not using cement
・ Development of technology toascertain solar power generation
output in real time
・Next-day solar power generation
projections using climate model・ Experimental study of nextgeneration energy transmission
and distribution optimal control
technology
・ Research and development for
Advanced Humid Air Turbine(AHAT) System
・ Experimental studies on nextgeneration
two-way
communication output control
technology
Grant

Ministry of
Economy,Trade andIndustry
Ministry of
Economy,Trade andIndustry
Ministry of
Economy,Trade andIndustry
Ministry of
Economy,Trade andIndustry
Ministry of
Economy,Trade andIndustry
Ministry of
Economy,Trade andIndustry

・R&D for SiC innovative powerelectronics to create a low- Japan Society forcarbonsociety(super-thick the Promotion of
Sciencemembrane and multi-layer SiC
epitaxial wafer technology)
・Research on impact of forest’s
watershed characteristics onhydroelectric power generation
volume (fiscal 2010 portion)・Research on impact of forest’s
watershed characteristics onhydroelectric power generation
volume (fiscal 2011 portion)
・ Research on impact of forest’s
watershed characteristics onhydroelectric power generation
volume (fiscal 2012 portion)
・Fiscal 2010 grant for project tosubsidize costs of developmentof dual analog/digital equipment
to alleviate poor reception
Total

National Land
Afforestation
Promotion
Organization
National Land
Afforestation
Promotion
Organization
National Land
Afforestation
Promotion
Organization
Association for
Promotion of
DigitalBroadcasting- 44 --

Designatednet assets

12. 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 of money

Content
Transfer to balance of current accountDepreciation allowance related to designated net assets
Transfer by exception from specification as designated net asset
Transfer by implementing of project for which subsidy was received
Transfer to nonrecurring profit

294,375,703
5,386,265
128,148,715
6,137,246

Transfer through retirement of designated net assets
Total

434,047,929

13. Trading content to related parties
No trading to related parties is recorded.
14. Important subsequent event
No important subsequent event is recorded.
15. Notes on assets from projects implemented
The balance of assets from projects implemented is as follows.
Subject
Special asset
Building
Ancillary buildings
Structures
Machine and equipment
Tools and furnitureLump-sum depreciable assets
Intangible fixed asset
Other fixed asset
Land
Building
Ancillary buildings
Structures
Machine and equipment
Tools and furnitureLump-sum depreciable assets
Intangible fixed asset
Building
Total

Book value at start of fiscal year
(1,532,076,529)
278,386,661
3,932,586
3,359,079
1,210,654,332
34,514,899
456,536
772,436(30,366,998,227)
8,385,231,067
9,143,536,146
2,481,479,236
764,150,519
7,477,101,132
1,447,008,937
11,556,847
34,598,878
622,335,465(31,899,074,756)(Unit: yen)Book value at end of fiscal year
(1,137,479,559)
258,033,100
2,621,757
2,672,890
848,362,479
22,315,542
1,103,211
2,370,580(30,245,662,536)
8,385,231,067
9,127,939,763
2,457,791,893
1,223,774,702
6,416,779,605
2,054,882,819
9,409,129
38,318,640
531,534,918(31,383,142,095)

16. Retirement benefit related(1) Summary of employed retirement benefit
CRIEPI has set up a defined benefit corporation pension system and termination
allowance plan as defined benefit contribution plans. As a result of revisions to its retirement
pension regulations, CRIEPI shifted from its previous retirement pension program to adefined benefit corporate pension system based on the Defined-Benefit Corporate Pension- 45 -

Act (Act. No. 50 of 2001) on April 1, 2012.
(2) Retirement benefit liability and its contents(Unit: yen)

[1] Retirement benefit liability

23,383,568,323[2] Retirement pension asset

13,141,523,340[3] Non-accumulated retirement benefit ([1]+[2])10,242,044,983[4] Non-depreciated mathematical calculation difference

2,959,294,504[5] Unamortized past service liabilities

2,100,249,521[6] Accrued retirement benefits for employees ([3]+[4]+[5])9,383,000,000(3) Items for retirement benefit expense[1] Working expense(Unit: yen)
960,477,168[2] Interest expense

228,658,731[3] Expectable operation benefit
129,081,053[4] Mathematical calculation difference depreciation[5] Unamortized past service liabilities

1,810,343,411

525,062,381[6] Retirement benefit expense ([1]+[2]+[3]+[4]+[5])2,345,335,876(4) Items for calculation bases of retirement benefit liability[1]Period allocation method of retirement benefit expectation: Period fixed amountstandard based on the working period[2]

Discount rate: 1.0%

- 46 -

[3]Expectable operation benefit: 1.0%

[4]

Processing year of difference on mathematical calculation: Five-year constantpercentage method is applied for depreciation after next year of occurrence.⑤
Number of years over which past service costs are amortized: Past service costs areamortized using the straight-line depreciation method for a five-year period from thefiscal year in which they were incurred.

[5]

Number of years over which past service costs are amortized: Past service costs areamortized using the straight-line depreciation method for a five-year period from thefiscal year in which they were incurred.

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

Type of asset

Decrease incurrent fiscal
periodBook value at endof fiscal period

278,386,661

0

20,353,561

258,033,100

Ancillary buildings

3,941,228

01,319,471

2,621,757

Structures

3,359,079

0686,189

2,672,890

1,217,615,256

5,606,000

374,858,777

848,362,479

36,921,060

12,880,499

27,486,017

22,315,542

Lump-sum depreciable assets

665,284

1,378,700

940,773

1,103,211

Intangible fixed assets

772,436

2,068,000

469,856

2,370,580

3,435,900,000

003,435,900,000

7,900,000,000

2,200,000,000

2,400,000,000

7,700,000,000

0500,000,000

0500,000,000

12,877,561,004

2,721,933,199

2,826,114,644

12,773,379,559

Buildings

Machines and equipment
Tools and furnitureSpecial assets for allowances forlump-sum retirement benefits
Special assets for allowance foracquisition of research facilities
Special assets for reserves for
projects
Total special assets(Note 1) The increase in the special assets for research facility acquiring allowance in this fiscal period is
attributable to reserves for specific assets with the objective of constructing the Yokosuka Thermal
Hydraulics Laboratory, acquiring the tsunami and flood channel, and acquiring the power systemsimulator. The decrease in in this fiscal period was due to the liquidation of specific assets with theaim of building Yokosuka area infrastructure, upgrading Facility for Experiments on Advanced
Gasification of Low-Grade Resources and large-scale computers, and upgrading large-capacity power
short-circuit testing facility.
(Note 2) CRIEPI is setting aside specific assets as reserves for its specific projects beginning this fiscal year.
The increase in this fiscal year consists of reserves for collaboration research contributions.

2. Breakdown of Allowances(Unit: yen)
Category

Balance at start offiscal period

Increase incurrent fiscal
periodDecrease in current fiscal period
Intended use

Other

Balance at end of
fiscal period

Allowance for employees

359,000,000

355,000,000

359,000,000

0355,000,000

Allowance for retirement
benefits for directors

302,000,000

97,000,000

00399,000,000

Allowance for retirement
benefits for employees

8,199,000,000

2,345,335,876

1,161,335,876

0

9,383,000,000- 48 -

Audit Report by Third-Party Auditor
May 8, 2013
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

We audited the financial statements of the Foundation of Central Research Institute ofElectric Power Industry (hereinafter referred to as “CRIEPI”) in the FY2012 business termfrom April 1, 2012 to March 31, 2013, including balance sheets, profit and loss statement(“net assets increase/decrease calculation sheet” according to the stipulations of the Public
Interest Corporation Authorization Guideline II-4), supplementary statements, notes on
financial statements and the breakdown of the “net assets increase/decrease calculation sheet”
cash flow calculation sheet, notes on financial statements and list of assets (hereinafter, thesubjects of our audit will be referred to as “financial statements”), in accordance with Clause
199 of the Act on General Incorporated Associations and General Incorporated Foundations
and Paragraph 1, Section 2, Clause 124 of the same Act.
Management’s responsibility for financial statements
Management is responsible for the preparation and fair presentation of the consolidated
financial statements in accordance with accounting principles generally accepted in Japan,
and for such internal control as management determines is necessary to enable thepreparation of consolidated financial statements that are free from material misstatements,
whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to express an opinion on the consolidated financial statements basedon our audit as an independent auditor. We conducted our audit in accordance with auditing
standards generally accepted in Japan. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the consolidated financial statements arefree from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures 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- 49 -

consider internal control relevant to the entity’s preparation and fair presentation of theconsolidated financial statements in order to design audit procedures that are appropriate in
the circumstances, while the objective of the financial statement audit is not for the purposeof expressing an opinion on the effectiveness of the entity’s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness ofaccounting estimates made by management, as well as evaluating the overall presentation of
the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
OpinionIn our opinion, the financial statements referred to above fairly present, in all material
respects, the net change in assets and profit/loss (change in net assets) for the period forwhich the financial statements were prepared, in accordance with accounting principles
generally accepted in Japan.
Interests
Our firm and its employees have no interest in CRIEPI which should be disclosed
pursuant to the provisions of the Certified Public Accounts Law of Japan.

- 50 -

Audit ReportAudit Report
May 16, 2013
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, 2012 to March 31, 2013
and report the audit method and results as follows.
1. Outline of the audit method
In accordance with the audit standards and the fiscal 2012 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 ofrevenue and expenditures (balance sheets and net assets increase/decrease calculation sheet)and supplementary statements.
2. Results of audit(1)

We recognized that the business reports properly indicated the business contents of
CRIEPI in accordance with laws and Articles of Incorporation.

(2)

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

(3)

There are no points to note regarding the establishment and administration of the- 51 -

(4)internal control system.
The method of audit employed by Meisho auditors and the results thereof are proper andthe statements of revenue and expenditures and supplementary statements properly
presents CRIEPI’s financial assets and income and expenditures in all important
respects.

- 52 -