FY2013
Reports on
Research Activities
Settlement of Accounts
From April 1, 2013
To March 31, 2014

June 2014

Central Research Institute of Electric Power Industry

Contents
Page
On the Publication of the Research Activities Reports for Fiscal 2013

・・・・・ 1

Reports on Research Activities
Key Initiatives in Fiscal 2013 ・・・・・・・・・・・・・・・・・・ 3
I.

Research Activities ・・・・・・・・・・・・・・・・・・・・ 6

II. Administration ・・・・・・・・・・・・・・・・・・・・・・ 24
III. Workforce ・・・・・・・・・・・・・・・・・・・・・・・・ 28
IV. Meetings held ・・・・・・・・・・・・・・・・・・・・・・・ 29
Settlement of Accounts
Outline of Settlement of Accounts ・・・・・・・・・・・・・・・・ 32
I.

Financial Statements ・・・・・・・・・・・・・・・・・・・・ 34

II. Supplementary Statement

・・・・・・・・・・・・・・・・・ 48

Audit Report by Third-Party Auditor ・・・・・・・・・・・・・・・ 49
Audit Report
Audit Report

・・・・・・・・・・・・・・・・・・・・・・・・ 52

On the Publication of the Research Activities Reports for Fiscal 2013
With no indication yet as to when nuclear power plants will resume operations, theelectric power industry’s business environment remains extremely difficult. In fiscal 2013
(April 1, 2013 to March 31, 2014), power companies temporarily reduced the benefit
expenditure that accounts for the majority of CRIEPI’s business income as a result of theirdeteriorating finances. Accordingly, CRIEPI changed its Research Plans and Statement of
Budget.
In pursuing our research, we identified and specified research that CRIEPI should address
through close communication with the electric power industry, in order to resolve the issues
facing the industry. By focusing management resources on research with a particularly highpriority, we have begun to produce effective results. As a result, we have provided the output
needed to resolve urgent issues in a timely manner, such as the screening to determine nuclear
power plants’ compliance with new regulatory standards and measures to counter natural
disasters at nuclear power facilities. Moreover, we are steadily yielding results in addressing
important medium- and long-term issues that contribute to the development of a solid andflexible energy supply-demand structure, including addressing the large-scale adoption ofrenewable energy.
At the same time, as in fiscal 2012, we thoroughly cut operating expenses overall,starting with personnel costs. In addition, in fiscal 2013 we cancelled and postponed someresearch on future issues for the electric power industry, and in some cases had to put off
plans for the introduction and renovations of large-scale research facilities, which are thesource of our research strength and ability to resolve issues.
Under these constraints, CRIEPI conducted its research using various innovative ways toprevent its research capacity from declining. We expect our business environment to remaindifficult, and will therefore strive to rebuild our business strategy for the future and generate
research results that are very effective in resolving the power industry’s issues.

-1-Reports on Research Activities
FY 2013

Key Initiatives in Fiscal 2013
Pursue research with clear priorities
In addition to clarifying the issues that should be resolved for the sake of the steadydevelopment of the electric power industry, we identified specific actions that CRIEPI would
take to resolve these issues in the “Portfolio of Research Subjects”. In addition, we
determined the priorities of the actions to be taken in terms of urgency, importance and
CRIEPI’s role, and pursued research with a focus on actions with the greatest priority.
(Refer to “I. Research Activities—3. Research Promotion” for details.)
Strengthen initiatives in research contributing to the resolution of urgent issues inthe electric power industry
In fiscal 2013, we exercised our collective strengths and gave the highest priority to theparticularly urgent issues of improving the safety of light water reactors and developing

natural disaster countermeasures. These efforts are aimed at ensuring a stable supply of thepower that supports the foundations of Japan’s society and economy.
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 carried out research and development on safety assessments for external natural
events such as earthquakes and tsunami as well as severe accident countermeasures. We also
pursued research on analysis of risk factors in the institutional environment surrounding theelectric power industry.
 Standard seismic movement and tornado impact assessments for safety evaluations of
nuclear power plants
 Development of seismic-resistant designs for foundations and surrounding slopes ofnuclear power plants
 Establishment of methodologies to evaluate fires in nuclear power facilities
 Identification of risks in institutional design for electric power industry associated withpower system reform(2) Further improvement of facility operations and maintenance technologies
We developed the maintenance and management technology needed for the stable
operation of nuclear power plants, and the technology supporting the construction, operationand maintenance of thermal and hydro power plants, as well as electric power transmission
and distribution facilities.
 Incorporation of testing methods related to evaluations of the structural integrity of lightwater reactors in codes and standards
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


Development of a method to predict remaining life until cracks initiate in high chromium
steel pipes
Development of method to evaluate remaining insulation performance of aged CV cables(3) Development of a supply/demand infrastructure for next-generation electric power
We worked on the development of next-generation technology and storage battery systemtechnology to facilitate the introduction of renewable energy into the power system. In
addition, we developed technology for thermal power generation for the effective use ofunutilized resources.
 Development of collaborative control technology for existing power sources and storage
batteries when solar power is introduced on a large scale Development of an evaluation technique of the performance degradation of lithium-ion
batteries for use in power grid stabilization.
 Development of an effective coal blending method for use with resources (coal that isdifficult to grind) not yet used as fuel at coal-fired thermal power plants(Refer to “I. Research Activities” for details.)


Reduction of R&D budget by canceling and postponing some research plans
As a result of temporary reductions in benefit income in fiscal 2013, CRIEPI reconfirmed
the priority level of all of its research plans and facility introduction plans, and decided tocancel or postpone some of these plans, while monitoring the impact (risk) that this could
have on future research projects.
Specifically, we canceled or postponed parts of research on power uprates of nuclear
power plants, research on geological environment assessments at high-level radioactive waste
disposal sites, research on refining systems for dry gas in IGCC in the future, the developmentof functional materials such as SiC power semiconductors, and research on next-generation
hard technology in anticipation of future facility updates and innovations at power distribution
facilities.
We also postponed plans to introduce and update large-scale research facilities such as
the enhancement of a large-scale vibrating table and a detailed design for a Material Analysis
Research Building (tentative name).
(Refer to “I. Research Activities—3. Research Promotion” for details.)

Thorough streamlining of operations across all research activities
CRIEPI appointed an operations rationalization director, and endeavored to cut operating
costs across all research activities by reviewing operations, adjusting environmental
improvements and ensuring competitive bidding.
In conjunction with this, we took measures to rein in personnel costs with a 30%
reduction in executive compensation, the elimination of one executive director position and a-4-

10% reduction in senior officers’ and general employees’ salaries. In addition, we reexamined
the need for research and operations and also took steps such as suspending the employmentof temporary contract employees in order to reduce the workforce to about 800 by the end of
fiscal 2015.
We finalized the plans to focus research at the research bases in the Yokosuka area andthe Abiko area with the aim of strengthening research capacity for the future and cutting fixedmanagement costs. We also made steady progress in setting up related facilities. Accordingly,
we are raising funds to set up these research bases by selling some of the land in the Komae
area.
(Refer to “I. Research Activities,” “II. Administration” 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 2013, CRIEPI pursued research with the aim of building a robust and flexible
energy supply/demand infrastructure that will ensure a stable supply of power to support thefoundation of Japan’s socio-economic activities. In particular, we focused our collective
strengths 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 2013.

1. Priority subjects and priority subjects with limited terms
CRIEPI identified 32 priority subjects for its research, selected as those the technologies
that will be most dispensable to the electric power industry at present and in the future, on
which to focus its efforts and maintain, continue or expand.
We identified 10 priority subjects with limited terms from among these priority subjects
as particularly urgent issues that must be resolved quickly through the Institute’s collective
strengths, and produced timely results. Priority subjects and priority subjects with limited
terms that are highly inter-related will be grouped together in 11 subject groups as we
endeavor to produce and disseminate effective results. The main research results for eachpillar are outlined below by subject group.
(1) Establishment of optimal risk management
With the aim of reducing and managing risks in stability of electricity supply, CRIEPI
evaluates the impacts of socioeconomic changes and natural external events on the electric
power industry, and addresses subjects that offer solutions, including social systems andframeworks.
Specifically, we addressed subjects related to enhancing the safety of light water reactors
and identifying radiation risks, which are urgent issues for the electric power industry. We
also conducted research contributing to natural disaster countermeasures at electric power
facilities and research on ways of supporting radioactive waste disposal operations. We also
carried out research on evaluation and proposal of energy and environmental policies that canachieve social consensus from a scientific and objective perspective.
Nuclear power plant safety
 Evaluation of LWR System Safety: We modified the analytical model for the hydrogenleak from the nuclear reactor containment vessel into the boiling water reactor (BWR)building in the event of an accident. The modified model accounts for the practicalstructure of side wall apertures such as blowout panels.
-6- Assessment of natural hazards to nuclear facilities: With the aim of developing a method
to evaluate asperities (an area on an earthquake source fault at which strong seismic
movements occur when the fault slips) from active fault information obtained on the
ground surface, we examined the extent of the asperities in past earthquakes with long
dislocations, as well as slippage and ground surface displacement, and identified a highcorrelation. Moreover, in order to identify characteristics of the shape of the edges of theearthquake source fault, we analyzed the deformations in the sedimentary rock layer atthe 1964 Niigata Earthquake’s source area (in marine waters) and estimated the shape ofthe fault’s deep areas.
 Fragility assessment of nuclear facilities against external natural phenomena: Concerning
the evaluation of ground failure in the event of an earthquake, we contributed to rationalanti-seismic design of slopes by developing a non-linear analysis method that can be used
not only to evaluate rupture occurrence, but also the rupture location by applying thismethod to nuclear power plant sites. In addition, we developed and introduced a largescale tsunami physical simulator for tsunami safety evaluation tests on nuclear power
plant facilities.
 Development of environmental diffusion evaluation methods and long-term behavior ofradioactive materials: We added a function enabling the external radiation exposure
resulting from surface deposition to be evaluated to the atmospheric diffusion model,
which evaluates the diffusion behavior of radioactive substances that have been released,
and developed a method for predicting external radiation exposure caused by the releaseof radioactive substances.
 Establishment of methodologies to evaluate fires in nuclear facilities: In order to develop
measures to mitigate the impact of fire at nuclear power plants, we established a method
for implementing automatic fire extinguishing systems for fires within cable trays andconfirmed its effectiveness in fire verification tests. We also carried out internal arc fire
experiments on high-voltage power panels, and evaluated condition values (arc energy
thresholds) to prevent fires from developing after arcs occur.
Radiation risk
 Quantitative evaluation of low-dose radiation risk and reflection to radiation protection
systems: In order to identify the impact of radiation exposure on cancer risks, wedeveloped an experimental method in which we can trace whether the damaged tissue
stem cells are removed from the organism or not. We confirmed the method’s
effectiveness by a series of preliminary experiments measuring the survival rate of tissue
stem cells after 0-4Gy exposure.
Nuclear fuel cycle and backend technologies
 Systematization of long-term safety evaluation for radioactive waste disposal: We
developed a method to highly accurately measure the hydraulic conductivity of Ca-type-7-

bentonite composite soil, which is expected to be used as an engineered barrier material,in order to quantitatively assess the important parameters in safety evaluations for nearsurface concrete pit disposal facilities.
 Development of long-term storage/management technologies for spent fuel: With the aimof establishing a method to measure the salt concentration on the canister surface, whichcauses stress corrosion cracking (SCC), we planned and created a prototype of a device
that is inserted in the narrow space between the canister and the concrete container anduses lasers to obtain remote measurements. We confirmed that salt concentration
measurements are possible in actual application environments.
Natural disaster reduction on transmission and distribution facilities
 Development of prediction methods of weather/climate affection to electric power
facilities: Using meteorological analytical data from the past 50 years, we developed amethod that clarifies the characteristics of regions in which major tornadoes occur as aresult of massive cumulonimbus and can evaluate the tornado hazards in regions in which
nuclear power plants are sited. As a result, we were able to evaluate the tornado-borne
missile speeds required in the screenings determining compliance with new regulations
for nuclear power plants.
 Demonstration of preventive and mitigating measures against snowstorm damage totransmission and distribution facilities: By considering insolation, the generation of heaton electric lines, and the moisture content of accreted snow, we refined the dynamic
simulation code for snow accretion that we developed so that it can evaluate the melting
and dropout of snow accretion, and made it possible to exhaustively evaluate snow
accretion phenomenon. We also set up full-scale test facilities for snow-storm damage tooverhead transmission lines in Kushiro, Hokkaido and began operations with the aim ofobserving strong winds, the accretion of damp snow and galloping.
 Risk management against lightning: We accomplished the significant improvement of thecomputational speed of the VSTL REV (Virtual Surge Test Laboratory, Restructured andExtended Version), a program that estimates and analyzes the electromagnetic field
phenomenon through lightning strikes on buildings with a high degree of precision. As aresult, we made it possible to estimate electromagnetic field phenomena resulting fromlightning strikes on multiple structures, which had previously been difficult to analyze
electromagnetic field phenomena on those structures, and to establish effective lightning
protection measures for electric equipment inside buildings.

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Energy and environment institutions
 Well-functioning electricity market and neutralization of network: We examined thecapacity market, which is being introduced in Europe and the US to ensure adequate
supply following the transmission unbundling and liberalization of the electricity market.
Specifically, we analyzed the characteristics of UK’s centralized capacity market andFrance’s decentralized capacity market, and identified the issues to be considered whenintroducing a capacity market in Japan.
 Analyses of energy saving and environment institutions from the point of view of
economics and energy security: We surveyed measures to control levies on a sharp rise inphotovoltaic (PV) power generation in the five countries that are part of Europe’s feed-in
tariff (FIT) program (Germany, Italy, Spain, France, England). As a result, we confirmedthat in all of these countries, purchase prices have fallen significantly, purchase prices arerevised more frequently and quantitative regulations are implemented. This provided
suggestions for revisions to FIT, which is to be introduced in Japan in fiscal 2015.
 Scientifically and economically rational scenarios to reduce CO2 emissions: Using an
integrated assessment model developed by CRIEPI, we evaluated multiple CO2 emission
reduction scenarios with different amounts of biomass resources under the condition thatthe temperature rises is limited below 2Ԩ. The evaluation showed that the targets ofemissions reductions that should be achieved by 2050 considerably depends on theavailability of bio-energy power generation with carbon capture and storage (BECCS) in
the second half of the 21st century.
(2) Further improvement of facility operations and maintenance technologies
In order to provide technical support for the stable supply of electricity, we carried out
research and development to improve the efficiency and economics of operation andmaintenance of power generating facilities and electric transmission and distribution facilities.
Specifically, we will steadily develop multi-purpose supporting technology for the
maintenance and management of light water reactors, essential to their ongoing operation, as
well as technology supporting the construction, operation and maintenance of thermal andhydro power plants and electric power transmission and distribution facilities.
Nuclear power plant maintenance Structural integrity evaluation of reactor pressure vessels and core internals: In
cooperation with research institutions worldwide, we verified that miniature specimens,
which can be taken from broken surveillance test specimens, can be used to evaluate thefracture toughness of reactor pressure vessel steels. We have revised the prediction codefor irradiation embrittlement of reactor pressure vessel steels based on the analysis of themost recent surveillance test data irradiated to high fluences, and contributed to therevision of the Japan Electric Association Code.
-9- Integrity evaluation of LWR components and piping: We used the data of pipe wall
thickness measurements for feed water piping of pressurized water reactor (PWR) plants
to validate the prediction software for pipe wall thinning (FALSET), which CRIEPI
developed. We were able to predict residual pipe wall thickness with a degree of accuracy
within ±10% and thus confirmed that it has reached a practicable level.
 Integrity evaluation of cable insulation used in nuclear power plants: We statisticallyanalyzed the evaluation results of the degradation characteristics of aged cables removed
from nuclear power plants, and compared this to previously conducted degradation
prediction based on accelerated aging tests. The results showed that degradation of cablesin the actual environment was more gradual than indicated by degradation predictions
based on accelerated aging tests thus far.
 Development of nondestructive inspection techniques for LWR components and piping:
We applied our own unique phased array ultrasonic testing to SCC occurring on
dissimilar metal welds, which are hard to damage using ultrasonic waves, and establisheda highly accurate method for measuring SCC depth.
Construction, operation and maintenance of power generation facilities
 Development of life assessment technology for high temperature structural components
of high chromium steels: With the aim of improving the reliability of creep life
assessment methods for high-chromium steel, we applied our life prediction model,
which evaluates creep deformation and crack initiation time, to an internal pressure creep
test on full-scale piping of high-chromium steel, and verified that the model is capable ofevaluating those with sound accuracy.
 Development of comprehensive atmospheric assessment method for thermal power
plants: We developed an atmospheric environmental assessment support tool applicablein a wide range of tasks, from preliminary environment impact assessments to the
preparation of assessment reports for the construction, extension and replacement ofthermal power plants. When source conditions (e.g., position and height of stacks,
specifications of emission gas) are entered into the tool, the dispersion of emission gas in
the atmosphere is calculated to draw a distribution of the dispersed gas concentration on amap.
 Development of techniques for conservation of biodiversity in construction and operationof electric power facilities: We developed a method for estimating the important species
capable of living in the area targeted for the project, using lists of organisms living in thesurrounding region, map information on vegetation, and information obtained in previous
research on important species, in order to support the smooth implementation of
biodiversity assessments and environmental conservation measures in environmental
assessment reports written at the planning stage of the construction of electric power
facilities.
- 10 -

 Synthesis system of numerical analysis for current and sediments in rivers and reservoirs:
We applied the method for assessing slope stability we had developed to slopes thatcollapsed in the events of torrential rain in typhoons with unprecedented rainfall, and thenconfirmed its validity. We also developed a device for measuring turbidity and water
quality in rivers and reservoirs in real time, and began tests to assess applicability in an
actual river.
Operation and maintenance of transmission and distribution facilities
 Maintenance and management technologies of aged transmission and distribution
facilities: We accumulated data on degradation characteristics for 20-60 kV CV cables
that had been removed and clarified changes in remaining insulation performance by thecables age. By conducting tests in a wide range of conditions, maintenance and renewal
standards based on remaining life estimates will be examined for specific conditions suchas the cable laying environment.
 Development of soundness assessment technologies for aged transmission towers: We
carried out exposure tests on members of a transmission tower in an oceanfront area tomeasure corrosion rate and identify spots that needs preferential inspection, and to clarify
the internal corrosion speed depending on the placement (horizontal brace, diagonalbrace) and the part of a steel pipe.
(3) Development of a supply/demand infrastructure for next-generation electric power
To minimize and overcome future risks, we addressed in advance issues in building anext-generation technical foundation that will enable greater efficiency and energy security interms of both energy supply and energy use.
Specifically, we developed technology for the effective use of unused resources and lowgrade resources in thermal power generation. In addition, we worked on developing
technology such as next-generation grids enabling the smooth introduction of solar power andother sources of renewable energy into the power system, as well as technology that promotes
the efficient use of energy, such as heat pumps.
Next-generation thermal power technologies
 Improvement of operation and control technologies to diversify fuel types for pulverizedcoal fired power plant: We proved the effectiveness of the in-furnace blended method in
raising the percentage of low grindability coal mixed in with other coal. In this method,
low grindability coal and other types of coal are pulverized separately, the former roughly
and the latter finely, in order to inhibit the rise in grinding power, and are then combusted.
 Advancement of utilization technologies for low rank energy resources: With the aim of
expanding the utilization of low-grade resources such as biomass, we evaluated thecharacteristics of mixed grinding for carbonized woody biomass with coal, which is- 11 -

produced by the test facility for the carbonization of biomass. By carbonizing biomass,
the grinding power for a 10% mixing rate was kept down to about 1.2 times a situation
with no mixing (the grinding power is about three times with uncarbonized biomass), andconfirmed that use at high rates of mixed combustion is possible.
Next-generation power grid technologies
 Power system security assessment with high penetration of photovoltaics: We carried out
numerical simulation using CPAT (CRIEPI's Power System Analysis Tools) for various
full-scale power system models in order to evaluate the impact on the system stability inthe case of high PV penetration and wind power generation. The results show that theeffects on the power system stability vary depending on the capacity and the position atwhich renewable energy power generation is introduced, and also on load flow andsystem fault conditions.
 Development of coordination system of power demand and supply in next generation: We
developed a reactive power control method for PV power conditioners, which augment
distribution line voltage regulators, as a countermeasure to voltage variations when PV is
introduced on a large scale. Numerical simulation demonstrated that reducing thecapacity of Static Var Compensators (SVCs), which are needed for regulation, can lower
costs.
 Next-generation communications network systems: We built a prototype system tosupport more effective substation maintenance work using a wireless sensor network.
This system makes it possible to easily and rapidly install sensors by working with theplug-and-play function. We have confirmed the actions of the system after sensor
installation.
 Evaluation of the feasibility of demand response suitable for Japan: We surveyed thecost-benefit analyses regarding the smart meters carried out in major European countries
which are also being adopted in Japan, and identified points of concern, such as the scopeof applicable benefits (scope extending to benefits for consumers and social benefits), theimpact of uncertainties (particularly the effect on energy conservation) and non-monetary
benefits (creation of new services, etc.).
Energy utilization technologies
 Development and evaluation of advanced heat pumps: We introduced a test facility forthe development and evaluation of heat pumps in industrial and commercial use, a facility
to assess the performance of various heat pump models and prototypes, and began
performance evaluation tests to identify the energy consumption efficiency of steamgenerating heat pumps for industrial use.
 Establishment of evaluation technologies for high performance secondary batteries: We
devised a simple technique for measuring the cathode and the anode potentials versus- 12 -

lithium metal, individually. We applied it to analyze degradation factors of commercialbased lithium-ion cells. The results reveal several internal reactions occurring in thebatteries, which is indispensable for the prediction of the remaining lifetime of thelithium-ion batteries.
2.

Basic technology subjects
Basic technology subjects are those that we address with the aim of identifying andresolving issues faced by the electric power industry and strengthening our basic researchskills, which are the source of our problem-solving, using our “pool of knowledge” consists ofknowledge useful on the frontlines, personnel with advanced expertise, sophisticated researchfacilities and our overseas and domestic human network. Specifically, we built up data andknowhow through studies, experiments and measurements on site, developed, established andrefined analytical methods and approaches, and conduced basic research to flesh out new
concepts.
We continued to work closely with the government and electric power industry to address
the accident in the Fukushima Daiichi nuclear power plants and aimed at resolving technicalissues for reactor decommissioning utilizing our basic technology.
We designated 36 basic technology subjects in fiscal 2013 to capitalize on the strengths
and specialized skills of eight laboratories with specific research fields. Our main results are
outlined below.

Socio-economic Research Center:
The Socio-economic Research Center, in the face of significant structural changes in thesocio-economic and energy environment, identified institutional issues with viablecountermeasures for them which are relevant for creating and maintaining a robust andflexible electricity supply structure.
 We identified and analyzed institutional issues, such as the inadequacies in the process ofreflecting scientific knowledge on regulations, as raised in the Case Study of theInvestigation Framework by Nuclear Regulation Authorities on the Shatter Zones at the
Tsuruga Power Station. As measures to resolve these issues, we proposed thatorganizations providing expert decisions, such as advisory groups, should be legalized
and that the functions of risk assessment and risk management by nuclear regulatory
authorities should be separated.
 We analyzed the impact of North American energy demand and supply on its LNG
exports. Contrary to the widely prevalent expectation that exports will lower Japan’s
average import price of LNG by at least 10%, the results showed that the impact on prices
is less than half of that expected, in the event that energy conservation in the US does notadvance significantly or that their natural gas production stagnates.
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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 distributed power sources. The laboratory also pursued researchon the development, testing and assessment of customer service technologies that promote theefficient use of electricity.
 With the aim of ensuring system stabilization with the large-scale adoption of renewableenergy, we compared the load frequency control developed by CRIEPI thatcollaboratively controls the existing power source and storage batteries to a method that
only controls the storage battery. In tests using an actual system, we found that thestorage battery capacity needed for frequency change control can be reduced significantly.
 To consider countermeasures for insufficient reserve capacity band the occurrence of
surplus power resulting from the large-scale integration of renewable energy sources, wedeveloped a prototype for a demand and supply operation simulator capable of generating
supply/demand operation plans for power sources and storage facilities, and confirmedthat a plan taking into account the output of renewable energy sources can be efficiently
generated for one month.
Nuclear Technology Research Laboratory:
The laboratory pursued basic and fundamental research related to improving the safety oflight water reactors, technologies for maintenance, technologies for fuel cycles, and measures
to prevent human error. The laboratory also carried out property evaluations and developed
treatment technology for fuel debris, as well as an issue in the decommissioning of the
Fukushima Daiichi Nuclear Power Plant.
 In order to quantify the performance of containment filter vent system, which candepressurize a containment vessel during severe accidents, we evaluated decontamination
factor of aerosol, iodine (I2) and organic iodine (CH3I) under atmospheric pressure forvarious accidental conditions. In addition, we designed and constructed a test facility
which can be operating up to the rated pressure.
 With the aim of use in probabilistic risk assessments of nuclear power plants, wedeveloped a database of common cause failures (CCF), which are one of the dominantrisk factors, at Japanese nuclear power plants, and had this incorporated in the Nuclear
Information Archives (NUCIA) of the Japan Nuclear Safety Institute so that all electric
power companies could use it.
 We carried out dry-out tests using actual waste liquid to analyze the release behavior ofradioactive nuclides when highly active liquid waste dries out, which is one of serious
accidents at reprocessing plants. We determined the release rate of Ru, the primaryradioactive nuclide released, and confirmed that this release rate can be reduced- 14 -

significantly by adding sugar to the highly active liquid waste as reductant agent.
Civil Engineering Research Laboratory:
The laboratory conducted fundamental research on geosphere science, earthquake
engineering, structural engineering and fluid dynamics needed for civil engineering
technology and natural disaster measures for power facilities, as well as for backend
management in nuclear fuel cycle and underground energy utilization technologies.
 We estimated the ground earthquake vibration based on a boring survey and indoor core
test for the 2004 Rumoi Earthquake, in which high-acceleration was recorded near the
epicenter. The result was utilized as a reference for the “seismic motion formulated
without a hypocenter” in the Review Meeting on Conformity to the New Regulatory
Requirements. The result was also found to be at the same level as the seismic motion
formulated by the former seismic design standards.
 We developed a framework for earthquake performance evaluation using finite element
analysis together with characteristics of the evaluation method and the analyticalmodeling method, for concrete gravity dams and dam gates. Then we established apractical technical manual “Seismic Resistance Analysis and Verification Manual” toevaluate the safety performance in large-scale earthquakes.
Environmental Science Research Laboratory:
The laboratory pursued basic research on the atmosphere, coastal and marine
environments, biology, chemistry and biotechnology for the siting and 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.
 With the aim of promoting the effective use of coal ash, we developed a method tosimultaneously quantify in a short time the concentration of trace substances in the ash(selenium, arsenic, chromium) using X-ray Fluorescent analysis. This would be aneffective technology in managing quality, and also makes it possible to quantify trace
substances much faster and at a lower cost than previous methods.
 The heat-circulative wash (for used equipment) and energizing wash (for equipment inuse) developed by CRIEPI for transformers contaminated with PCB acquired thetechnical evaluation from the Ministry of the Environment legally required for wash
treatments.
Electric Power Engineering Research Laboratory:
The Electric Power Engineering Research Laboratory maintained and developed basic
technologies related to electric power transmission and distribution equipment, including
electrical insulation, high voltage technology, lightning protection, the electromagnetic
environment and high current technology. The Laboratory also worked on basic and- 15 -

fundamental research related to new electric power technologies, such as electromagnetictransition analysis methods, numerical analysis of arc failure, power electronics applications
and laser applications.
 To develop a method to evaluate the deterioration of O-rings, which affects the reliability
and life of substation facility such as gas-insulated switchgear, we developed a method toestimate the compression set rate (an indicator for the degradation in seal performance)from the use environment conditions, such as temperature, and physical values of O-ringrubber.
 In order to prevent public disasters and arc failures in electric power equipment fromspreading to surroundings, we developed a numerical analysis model for pressure relief
openings, wire meshes and metallic perforated plates, installed to control pressure rises inswitchgears. We were able to carry out evaluations of pressure rises and propagation
characteristics in switchgears using computational fluid dynamics method and thedevelopment numerical analysis model.
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.
 Miniature sample creep tests and metal temperature analysis of actual boiler tubes havebeen performed to accumulate reference data to form a reasonable judgment of thechemical cleaning interval. It was discovered that the chemical cleaning interval could be
extended by forecasting the damaged condition of the boiler tube based on the actual
operation data of the thermal power plant boiler.
 We evaluated the thermal efficiency improvement in the existing gas turbine combined
cycle (GTCC) system when setting up a solid oxide fuel cell (SOFC), and found that
thermal efficiency rose from 53% LHV to 69% at 1250 degrees Celsius class GTCC andfrom 59% to 71% at 1500 degrees Celsius class GTCC.
Materials Science Research Laboratory:
The laboratory conducted basic technology development related to materials used by theelectric power industry, including understanding the mechanisms by which structural
materials used in nuclear and thermal power generation are damaged and deteriorate,
improving life prediction methods, developing new materials for energy conservation, anddeveloping high-performance power semiconductors.
 Based on analyses of solar irradiation data, we proposed a new categorization of weather
into four modes in terms of solar irradiance variability, and used it to discuss solar
irradiance prediction needed to estimate PV power yields from sunshine duration- 16 -

obtained from the AMeDAS data. These results are consistent with the previous empiricalrules; this means that we expect to establish a method of easily estimating solar
irradiances from the AMeDAS data.
 We developed an interatomic potential for atomistic-level computer simulations ofchromium carbides in ferritic steels used in thermal plants. We also developed acomputational tool to simulate the coarsening of chromium carbides at long-term
operation of thermal plants.
3. Research Promotion(1) Augment research plans by continuing to brush up plans We examined research and development in the electric power industry overall andestablished the “Issues Facing the Electric Power Industry,” which clarifies the issues thatneed to be resolved, and the “Portfolio of Research Subjects,” which lays out the actions
that CRIEPI should take to resolve the issues. This clarified our role in research anddevelopment for the electric power industry and further augmented research plans.
 We strengthened communication with electric power companies through various researchcommittees held by CRIEPI, gatherings for exchange of opinions and research societies.
We thoroughly ascertained information and opinions at various levels, which enabled us
to accurately reflect front-line needs in research plans and their implementation in atimely manner.
(2) Strengthening Research Structure to Produce High-value Results Despite Budget
Constraints
 Given ongoing cuts in research funding, we used ingenuity to resolve issues by, forexample, finding the most effective and rational measure without being chained toprevious initiatives and methods. We endeavored to strengthen our research structure by
generating research results with high value through these initiatives. Moreover, given
temporary reductions to benefit income, we cut costs thoroughly across all research
activities by examining plans and reviewing specifications for all research facilities.
 In order to enhance the quality of our research results and remain accountable externallyregarding our research activities, we had outside experts evaluate our research. We also
conducted research value assessments on all of our research subjects based on the
expected outcome, which ensured that our research plans were devised with a focus oncost effectiveness.
(3) Maintaining and Improving Research Activities and Problem-solving Ability
 In order to build the research foundation that is the source of our researching capacity andensure that we help to solve the electric power industry’s issues on an ongoing basis, we
adjusted implementation schedules for the introduction of large-scale research facilities,- 17 -








despite budget constraints. The main large-scale research facilities introduced in fiscal
2013 are as follows.
Large-scale tsunami physical simulator: Used to evaluate safety of electricity facilities inthe event of a tsunami
Full-scale test facilities for snow-storm damage to overhead transmission lines: Used toclosely study snow-storm damage to overhead transmission lines
Advanced combustion test facility for diversification of available fuel types: Contributed
to the diversification of fuel types and the reduction of fuel costs in coal-fired power
stations
Test facility for the carbonization of biomass: Used to develop carbonizing technology ofbiomass for mixed combustion use, in coal-fired thermal power
Test facility for development and evaluation of heat pumps in industrial and commercial
use: Used to evaluate performance of heat pumps for a range of applications

When introducing research facilities, we endeavored to cut costs by screening plans andutilizing competitive bids. We also put off plans to introduce some large-scale researchfacilities as a result of temporary cuts to revenue from benefit income.
 We strengthened collaboration with the electric power industry and improved theapplicability of our results to the frontlines by carrying out research jointly with electric
power companies and encouraging personal interaction with long-term dispatches,internships and training.
 We proactively pursued joint research and personal interaction with Japanese andoverseas research institutes (such as the US-based Electric Power Research Institute,
Électricité de France, Japan Atomic Energy Agency and the Marine Ecology ResearchInstitute) in order to produce effective and advanced research results through mutuallycomplementary scientific knowledge.
(4) Management and Utilization of Intellectual Property
 We endeavored to secure, maintain and utilize our intellectual property in order to make asignificant contribution to the electric power industry as well as all electricity customers.
In fiscal year 2013, we carefully reviewed all our overseas patents in terms of their costeffectiveness, then we abandoned some patents. Table 3 shows the number of patents weofficially submitted and registered as well as the number of software applications
registered in our institute.
 We have managed the security trade control under Japanese low and carried out extensive
risk management, including the prevention of misconduct.
 We published the Annual Research Report for Fiscal Year 2012, and continued to offer afree download service for our research reports in order to encourage the broad use of ourresearch output. We also published The Intellectual Property Report for Fiscal Year 2012,- 18 -

which summarizes our actions for generating and utilizing our original intellectual
property.
We have proactively utilized our patents and software by providing them to externalcustomers. We also strived to spread our knowledge to engineers in the front lines
through technology-exchange courses and technology-lecture courses. Table 4 shows thenumber of patent rights and software licenses.
As a non-profit academic research organization, we provided scientific data andcontributed to the establishment of specifications, codes, standards and technicalguidelines on energy and the environment by participating in many committees ofgovernment and academic societies. Table 5 shows our contributions to major codes,
standards, and technical guidelines.

(5) Promotion of Funded Research We will give priority to funded research that meets the needs of the electric power







industry, utilizing our technology, knowledge, staff, facilities and networks, and will
generate and provide results in a timely and accurate manner. Given the harsh budget
constraints, we endeavored to cut costs by adjusting the content and schedules of someresearch projects in consultation with the organization funding the research.
In order to provide prompt and accurate solutions to the electric power industry, weorganized examples of how our basic technology is used on the frontlines in the electric
power industry in a “Catalog of Technology.” To encourage CRIEPI’s use, we highlighted
our role as a contact point for resolving issues and introduced ourselves to electric powercompanies in a succinct manner.
We facilitated the activities of the PD Center, which gives certification exams for experts
of ultrasonic inspection working with nuclear power plant components, and also
facilitated activities of the High Power Testing Laboratory, which performs short-circuit
tests on electric power equipment.
We undertook and implemented research funded by the government that meets ourresearch strategies and that will contribute to the electric power industry through theestablishment of specifications and strategies. Table 6 shows the main research projects
for which CRIEPI received government funding.

- 19 -

Table 1: Number of Reports
Research reports, etc.

Funded research

Total

Socioeconomics

28

1

29

Environment

28

21

49

Customer energy services

15

9

24

Power delivery

48

41

89

Nuclear power generation

54

40

94

Fossil fuel power generation

29

24

53

New energy

16

14

30

Information & communication

24

3

27

Construction and maintenance ofelectric power facilities

18

9

27

Advanced basic technologies

10

4

14

Total

270

166

436

(Number in fiscal year 2012)

271

158

429

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

118

(25)

Environment

169

(62)

Customer services

135

(31)

Power delivery

87

(14)

Nuclear power generation

218

(40)

Fossil fuel power generation

304

(78)

Renewable energy power generation

136

(41)

Information & communication

66

(12)

Construction and maintenance of electric power facilities

48

(7)

Advanced basic technologies

120

(47)

Others

8

(3)

Total

1,409

(360)

(Number in fiscal year 2012)

1,559

(383)

- 20 -

Table 3: Number of applications and registrations of patent right, and software
Patent right
Software Registration
Application

Registration

Socioeconomics

0

0

5

Environment

8

27

13

Customer services

8

2

12

Power delivery

9

20

21

Nuclear power generation

14

13

5

Fossil fuel power generation

9

24

7

Renewable energy power
generation

3

8

1

Information & communication

4

7

4

Construction and maintenance ofelectric power facilities

8

14

5

Advanced basic technologies

18

24

0

Others

0

1

1

Total

81

140

74

(Number in fiscal year 2012)

130

144

67

Note: Number of patents held as of end-FY 2013: 795

Table 4: Number of licensed patents and licensed software applications

Total(Number in fiscal year 2012)

Number of licensed patents

19

20

Number of licensed software applications

312

357

- 21 -

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

Code, Standard, Technical Guideline, etc.

Organizations and Groups
Concerned

Guidelines on the Disposal of Trace PCB Contaminated Waste Electrical
Equipment: Washing Procedure Version

Ministry of the Environment

JEAC4201-2007Method of Surveillance Tests for Structural Materials of
Nuclear Reactors (2013 Addition)

Japan Electric Association

JEAG4625-2014 Guidelines for Methodologies for Volcano Evaluations at
Nuclear Power Plants

Japan Electric Association

JEAC4629-2014 Regulations for Technologies for Tsunami-resistant Design at
Nuclear Power Plants

Japan Electric Association

JEAG/C4601 Regulations for Technologies for Aseismic Design at Nuclear
Power Plants

Japan Electric Association

JEAC3704-2013 Regulations for Gas Turbines for Power Generation

Japan Electric Association

JEAC3712-2013 Ammonia Facility Regulations

Japan Electric Association

JEAG9702-2013 Guidelines on Harmonic Control Countermeasure
Technologies

Japan Electric Association

A Standard for Ensuring the Quality of Probabilistic Risk Assessment at Nuclear
Power Plants

Atomic Energy Society of Japan

A Standard for Procedures of Probabilistic Risk Assessment of Nuclear Power
Plants during Power Operation (Level 1 PRA)

Atomic Energy Society of Japan

Japan Health Physics Society Guidelines “Dose Control Method for Internal
Exposure”

Japan Health Physics Society
Electric Power Civil Engineering
Association

Outline of Sluice Gate Management
IEC 61786-1 Ed.1.0 Measurement of DC magnetic, AC magnetic and AC
electric fields from 1 Hz to 100 kHz with regard to exposure of human beings;
Part 1: Requirements for measuring instruments- 22 -

IEC/TC106 Japan National
Committee

Table 6: Main funded research commissioned by government

Name

Source of commission

Survey of Geological Disposal of Technology (Development ofTechnology for Evaluation and Verification of Migration of
Groundwater in Bedrock)

Ministry of Economy, Trade and Industry

Initiative for Safety Measure Improvement and Technical Basis
Development for Nuclear Power Plants (Improving Analytical
Methods for Thermal Hydraulics Phenomenon in Fuel Exposure
Process)

Ministry of Economy, Trade and Industry

Initiative for Safety Measure Improvement and Technical Basis
Development for Nuclear Power Plants (Establishment ofTechnical Foundation for Performance Evaluation of Filter Vents)

Ministry of Economy, Trade and Industry

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

Ministry of Economy, Trade and Industry

Consideration of Recent Trends and Spread of Biomass Energy in
Asia

New Energy and Industrial Technology
Development Organization

Technology development for SOFC commercialization promotion /Basic study on rapid evaluation method of SOFC durability

New Energy and Industrial Technology
Development Organization

Project on revolutionary coal gasification power generating plantwith zero emissions; Basic research project on revolutionary
gasification technology; Research on basic technology todevelop high efficiency oxy-fuel IGCC

New Energy and Industrial Technology
Development Organization

Electrolytic Reduction Tests for Fuel Debris

Japan Atomic Energy Agency

Development of heating method for methane hydrate recovery
using CO2 /water emulsion- 23 -

National Institute of Advanced Industrial Scienceand Technology

II. Administration
1.










2.


Extensive review of expenditures to cut costs
In addition to firmly establishing the cost-cutting initiatives we have taken thus far, we
appointed an operations rationalization director and identified areas with room for further
cost-cutting. Specifically, we revised specifications for outsourced operations, reduced
the rental area of buildings housing head office organizations and others, and curbed
travel expenses for business trips by using video conferencing instead. As such we
steadily reduced operating costs across all operations.
We used competitive bidding in principle for outsourcing and procurement, and laid out
specific guidelines in “Production and Outsourcing Requiring Data Continuity andConsistency” and “Maintenance and Management by Producers and Developers for
Facilities, Equipment and Information Systems” as criteria for unavoidable negotiatedcontracts.
We reexamined the priority of facility and environmental improvements in terms of theirneed and urgency, including plans whose implementation was postponed in fiscal 2012,and decided whether or not to go ahead with implementation. Specifically, we postponedsome plans to repair deteriorating facilities, such as repairs to outer walls of buildings,
and environmental maintenance measures until fiscal 2014.
In light of higher fixed asset tax obligations resulting from the transition to the status of ageneral incorporated foundation, we proactively retired and disposed of idle facilities andunused assets, and sold the site of training facilities. We carefully examined themaintenance of facilities and assets that continue to be used, and endeavored to reduce
maintenance costs.
We streamlined the management system by reducing executive salaries by 30% andeliminating the position of one executive director. We also reduced the salaries ofmanagerial employees and general employees by about 10%. We took measures tosuspend the hiring of temporary contract employees. We also took measures to curb
overall expenditures on welfare costs, such as closing directly-run resort facilities andshrinking the cafeteria plan program.
Establishing research bases in line with income and expenditures
We established the research environment indispensable in maintaining and strengthening
our research capacity for the future, and steadily established research bases to the
Yokosuka and Abiko, which is aimed at reducing fixed management costs. We also soldsome land in the Komae area (about 14,000 m2 out of a total area of 58,000 m2) to raisemoney to establish these bases.
-

In the Yokosuka area, which we aim to turn into a “technology research base forenergy industry,” we completed the construction of the 7th Research Building for- 24 -

common use and the Power Plant Thermal-Hydraulics Test Building, which thefacilities will be relocated from the Komae area. In addition, we prepared temporary
office for some employees of the Komae area who will use these facilities. We havebegun advance consideration of the administrative procedures for the Materials
Analysis Building (tentative name). We finalized the construction plans for the New
Research Building (tentative name), where the Research Division employeestransferred from the Komae area will work, and selected a designer using the
proposal method.
-



3.




In the Abiko area, which is intended to be a “research base for nature and theenvironment,” we carried out updates on air conditioning at the main building andannex and maintained and repaired other facilities as well in order to effectively
utilize existing facilities and equipment.
Beginning in fiscal 2015, the Administrative Support Center and Intellectual Property
Center functions, currently located in the Komae area, will be consolidated with relatedgroups in the head office, after which we will move integrated processing functions forstandard, repetitive operations such as labor welfare, contracts, accounting andinformation systems to the Abiko area. We decided to disperse the intellectual property
and research contract functions to the Yokosuka and Abiko areas with the aim ofstrengthening research support, and have begun considering the specific organizations
and systems.
Encouraging personnel’s job performance and hiring diverse staff in line withresearch development
As part of our efforts to strengthen our personal support for personnel, we offeredongoing opportunities for all employees to talk one-on-one with the Human Resources
Division. We also developed an electronic system to consolidate personal information tocontribute to ongoing HR training and utilization. We utilized the deputy associate vicepresident position established in fiscal 2012 to hire research personnel quickly. In
administrative work, we endeavored to utilize personnel by giving more titles identifying
responsibilities (research management manger, intellectual property manager, etc.).
In order to hire diverse researchers with the kind of sophisticated expertise that enables
them to begin contributing immediately, we decided to introduce the “special limitedterm research position” beginning in fiscal 2014. This program will have the same
benefits and responsibilities as an employee, and personnel in these positions can become
employees if they meet certain conditions.

- 25 -

4.






5.







Strengthen dissemination of research results to enhance CRIEPI’s value
We transmitted research results in a timely manner in accordance with developments inenergy policy, such as electricity system reforms, and also shared scientifically objective
information on natural disasters and Low-Dose Radiation.
In May 2013, we held the “Research Results Presentation 2013” to introduce CRIEPI
research activities related to ensuring the reliability of thermal power generation anddistribution facilities supporting the stable supply of electric power. Moreover, we
published research results produced with our advanced expertise and collective strengths
in an easy-to-understand way in CRIEPI TOPICS and other publications (in Japanese).
In addition to focusing on compiling information from power companies and outside
experts so that our publicity activities are in line with the electric power industry’s needs
and external conditions, we continued to provide information of our own to strengthen
this coalition.
Sound and rigorous pursuit of business operations
We continued efforts to strengthen governance and risk management and establish andimprove compliance awareness among executives and regular employees, and ensured
sound and rigorous administration with autonomy.
We strengthened our IT-BCP (Business Continuity Plan) to prepare for large-scale natural
disasters. For example, we developed a remote back-up system for all shared operating
systems and a cloud back-up environment for research and administrative data.
We steadily pursued our Plan on Expenditures for Public Benefit through the activities
described in this report. This plan is expected to be completed in fiscal 2014.
Please refer to the next page regarding our system for ensuring that directors comply withlaws and articles of incorporation and our system for 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 with laws andarticles 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 other the
executives carrying out operations (below, “Management Committee”) will be held regularly and important issues
involved in conducting operations will be discussed with a flexible and multidisciplinary approach.
The operations that executives are in charge of performing will be clarified and business will be conducted in an
appropriate and prompt manner.

Responsibilities and authority in exercising professional duties for Vice Presidents will be clarified in internal
regulations, 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 be appropriately 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 of eachdivision will be regularly monitored in order to ensure that operations are conducted appropriately and efficiently.
(2) System for risk management
A risk management system and internal regulations will be established.

Risks related to business activities in carrying out professional duties will essentially be managed with a selfgoverning approach, based on laws and internal regulations.

General risk management will be carried out by the Internal Audit Division in a centralized manner, with audits toensure 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 the Management
Committee and the necessary countermeasures will be discussed as required.
In order to prepare for emergency disasters, internal regulations on the support organization and information system
will be stipulated in internal regulations, and disaster prevention training will be carried out.
(3) Management system for complianceAction guidelines for compliance will be established and put into practice with the Vice Presidents taking the lead.
In addition, employees will receive ongoing training on the prevention of improprieties via CRIEPI’s website forinternal users.

A whistleblowing hotline will be permanently established with both internal and external access so that employees
can discuss issues anonymously.
The Internal Audit Division will audit employees’ performance of professional duties in terms of compliance andreport the results to the Management Committee. Executives will make the necessary improvements in light of theaudit 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 acts that
violate laws, articles of incorporation and other internal regulation, they should report directly to the President
General Auditor and/or the Internal Audit Division.
The Vice Presidents and employees will report to the auditor regarding the status of the execution of professional
duties when requested to do so.

- 27 -

III. Workforce
We maintained the current number of research staff, while slightly reducing the staff in
administrative appointments in order to streamline operations and better utilize humanresources. This was in line with our basic policy to reduce the current staff of about 840 as ofthe start of fiscal 2012 to about 800 by the end of fiscal 2015.
We carefully examined the number of employees needed to expand projects in the future
and their composition, as well as the number of employees needed for each research projectand operations, and then suspended the employment of temporary contract employees as partof our efforts to reduce the workforce.
The workforce as of March 31, 2014, was as follows.
Item

Numbers

Percentage distribution (%)

722

88.0

1. Research*Including 30 visiting
researchers(Breakdown according to field)(100.0)(1)Electrical Engineering

106

14.7

(2)

Civil Engineering and Architecture

98

13.6

(3)

Mechanical Engineering

98

13.6

(4)

Chemistry

67

9.3

(5)

Biology

56

7.7

(6)

Nuclear Engineering

54

7.4

(7)

Environmental Science

38

5.3

(8)

Information and Communication

37

5.1

(9)

Socio-economics

49

6.8

(10) Research Support and Management

119

16.5

2. Office work

98

12.0

820

100

Total

- 28 -

IV. Meetings held
1.

Board of Councilors
Date held

AgendaJune 14, 2013

1.

Approval of report on research activities in FY2012(No. 5)

2.

Approval of report on settlement of accounts in FY2012

3.

Presentation of Report on Implementation of Public Interest Expenditures Plan

4.

Election of councilors, vice presidents and general auditors

1.

Election of councilors, vice presidents and general auditors

September 30, 2013

1.

Decision on decrease in ongoing donations in FY2013(No. 7)

2.

Approval of Changes to Research Plan in FY2013

3.

Approval of Changes to Statement of Budget in FY2013

March 14, 2014

1.

Decision on decrease in ongoing donations in FY2014(No. 8)2.

Approval of Research Plan in FY2014

3.

Approval of Statement of Budget in FY2014

August 21, 2013
(No. 6)

2.

Board of Directors
Date held

AgendaMay 30, 2013

1.

Reports on research activities in FY2012 (Draft)(No. 5)2.

Statement of Budget in FY2012 (Draft)3.

Report on Implementation of Public Interest Expenditures Plan (Draft)4.

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

June 14, 2013

5.

Election of councilors, vice presidents and general auditors

6.

Decision to convene regular Board of Councilors

1.

Election and division of responsibilities for executive president, executive directors,(No. 6)standing directors and vice presidents
2.

Election of important employees

3.

Payment of allowance for retirement benefits for directors

1.

Election of councilors, vice presidents and general auditors

September 10, 2013

1.

Decrease in ongoing donations in FY2013(No. 8)2.

Changes to FY2013 research plans

3.

Changes to FY2013 statement of budget

4.

Changes in division of responsibilities for managing directors

5.

Abridgment of decisions by Board of Councilors

August 5, 2013
(No. 7)- 29 -

Date held

AgendaMarch 6, 2014

1.

Decrease in ongoing donations in FY2014(No. 9)2.

Research Plan in FY2014

3.

Statement of Budget in FY2014

4.

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

5.

Decision on convening Board of Councilors- 30 -

Settlement of Accounts

Outline of Settlement of Accounts
Net property at the end of fiscal 2013 was 41.11 billion yen, 4.26 billion higher than theend of the previous fiscal year.
1.

Financial statements(1) Assets condition
Total assets amounted to 56.82 billion yen, up 6.29 billion yen over the end of theprevious fiscal year. The growth in assets can be attributed to a 360 million yen increase in
cash and deposits, 5.99 billion yen in reserves of special assets to establish bases in the
Abiko and Yokosuka areas funded by proceeds from the partial sale of the Komae area, anda 2.06 billion yen increase in other fixed assets, such as research assets. At the same time,the decrease in assets was due to a 3.4 billion yen difference between the amount in special
assets for research facility acquisition allowance and the amount used.
(2) Liabilities condition
Liabilities totaled 15.71 billion yen, up 2.02 billion yen over the end of the previous
fiscal year. This was due to a 1.74 billion increase in accrued liabilities due to the increasein the acquisition of research facilities at the end of the fiscal year compared to the previous
fiscal year.
(3) Net assets condition
Net assets amounted to 41.11 billion yen at the end of the fiscal year, consisting of
40.36 billion yen in general net assets and 740 million yen in designated net assets.
2.

New assets increase/decrease calculation sheet(1) Changes in general net assetsOrdinary revenue was down 2.35 billion yen over the previous fiscal year to 26.47
billion yen. Current donations decreased 2.71 billion over the previous fiscal year to23.56 billion yen due to temporary reductions made as a result of the rapid deteriorationin electric power companies’ financial conditions. In addition, revenue from research
projects funded by the government rose 420 million yen to 2.02 billion yen.

Ordinary expenditure fell 440 million yen compared to the previous fiscal year to 28.42
billion yen. This decrease can be attributed to revisions to project plans to compensate
for the decline in revenue, and a drop in personnel expenses.



As a result, the current change in ordinary revenue was a drop of 1.91 billion yen to a
net decrease of 1.95 billion yen after a net decrease of 30 million yen in the previous
fiscal year.

Nonrecurring revenue was up 6.76 billion yen over the previous fiscal year to 6.36
billion yen due to the partial sale of the Komae area.

- 32 -

As a result, the current change in net assets was a net increase of 4.41 billion yen.
(2) Change in designated net assets
The change in designated net assets was a net decrease of 150 million yen, up 120
million yen over the previous fiscal year, due to a reduction in depreciation expenses for the
special assets funding designated net assets.

- 33 -

I. Financial Statements
Balance Sheet
As of March 31, 2014
(Unit: yen)Account

Current
fiscal year

Previous
fiscal year

Increase/decrease

3,559,402,456
4,130,545
1,380,919,284
32,556,830
382,652,938
5,359,662,053

3,198,576,076
4,128,621
1,107,786,069
125,794,742
11,929,723
4,448,215,231

360,826,380
1,924
273,133,215
ᇞ 93,237,912
370,723,215
911,446,822

237,679,539
1,310,928
2,059,385
604,502,982
48,138,006
1,170,833
9,854,811

258,033,100
2,621,757
2,672,890
848,362,479
22,315,542
1,103,211
2,370,580

ᇞ 20,353,561
ᇞ 1,310,829
ᇞ 613,505
ᇞ 243,859,497
25,822,464
67,6227,484,231

3,435,900,000

3,435,900,000

04,300,000,000

7,700,000,000

ᇞ 3,400,000,000

1,450,000,000
5,997,134,033
16,087,750,517

500,000,000
0950,000,000
5,997,134,033
3,314,370,958

I. Assets section
1. Current assets
Cash and deposit
Securities
Account receivable
Suspense payable
Advance payment
Total current assets
2. Fixed assets(1) Special assets
Buildings
Ancillary buildings
Structures
Machine and equipment
Tools and furnitureLump-sum depreciable assets
Intangible fixed asset
Special assets for retirement lump sum grants benefits
package allowance
Specific assets for reserves for acquisition of researchfacilities
Special assets for special project reserves
Specific assets for purpose of setting up bases
Total special assets

12,773,379,559(2) Other fixed assets
Land
Building
Ancillary buildings
Structure
Machine and equipment
Tools and furniture
Rolling stock and vehicles
Lump-sum depreciable assets
Intangible fixed asset
Construction in process accountLong-term prepaid expenses
Total other fixed assets
Total fixed assets
Total assets

8,553,518,118
10,935,609,058
3,337,535,463
1,270,091,960
8,228,664,436
1,893,042,321
50,266,593
43,887,715
632,801,125
435,894,090
035,381,310,879
51,469,061,396
56,828,723,449

8,698,562,302
9,350,481,451
2,493,596,502
1,236,471,797
6,420,885,983
2,095,109,876
12,313,186
40,826,810
538,429,909
2,387,225,600
41,074,011
33,314,977,427
46,088,356,986
50,536,572,217

ᇞ 145,044,184
1,585,127,607
843,938,961
33,620,163
1,807,778,453
ᇞ 202,067,555
37,953,407
3,060,905
94,371,216
ᇞ 1,951,331,510
ᇞ 41,074,011
2,066,333,452
5,380,704,410
6,292,151,232

II. Liability section
1. Current liability
Accrued liability
Money entrusted
Advance receipt
Accrued bonus
Total current liability

5,002,766,734
86,984,059
176,181,067
253,000,000
5,518,931,860

3,261,954,053
96,862,107
193,116,472
355,000,000
3,906,932,632

1,740,812,681
ᇞ 9,878,048
ᇞ 16,935,405
ᇞ 102,000,000
1,611,999,228

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

440,000,000
9,757,000,000
10,197,000,000
15,715,931,860- 34 -

399,000,000
9,383,000,000
9,782,000,000
13,688,932,632

41,000,000
374,000,000
415,000,000
2,026,999,228

Current
fiscal year

Account

Previous
fiscal year

Increase/decrease

439,096,146
359,144,296
105,551,220
903,791,662

ᇞ 47,127,662
ᇞ 125,518,158
18,079,592
ᇞ 154,566,228

III. Net assets section
1. Designated net assets

391,968,484
233,626,138
123,630,812
749,225,434

Special benefits
Cash subsidy
Cash contribution
Total designated net assets(Including appropriation to special assets)((Including appropriation to special assets)
Total net assets
Total of liability and net assets

749,225,434)(

40,363,566,155

2. General net assets(

11,902,625,083
41,112,791,589
56,828,723,449- 35 -

903,791,662

)

(

(

8,433,687,897
36,847,639,585
50,536,572,217)

4,419,718,232

35,943,847,923)

ᇞ 154,566,228)(

3,468,937,186
4,265,152,004
6,292,151,232)

Net Assets Increase/Decrease Calculation Sheet
From Aril 1, 2013 to March 31, 2014
(Unit: yen)Account

Current fiscal year

Previous fiscal year

Increase/decrease

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

23,565,000,000

Current benefit received([2] Operating revenue

2,474,101,545(

2,024,089,394

Funded research operating revenue(

126,043,356

1,993,405,373)(

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

450,012,151

Other operating revenue

ᇞ 2,714,193,000

26,279,193,000))(

480,696,172
60,661,107)(

ᇞ 6,421,005

Interest received

7,604,783

132,464,361
7,924,914

Facility usage fee received

80,880,097

86,093,236

Miscellaneous revenue

37,558,476

38,446,211

ᇞ 887,735

311,725,606

427,910,683

ᇞ 116,185,077

26,476,870,507

28,832,973,417

ᇞ 2,356,102,910[3] Other revenue[4] Transfer from designated net assets
Total current revenue)

420,035,065)

ᇞ 320,131
ᇞ 5,213,139(2) Current expenditure[1] Project cost

Salary and benefit

6,811,565,964

10,554,932,001
7,385,550,520

Retirement benefit expenditure

1,534,742,318

2,185,853,040

956,587,042

983,528,441

Personnel expenditure(

9,302,895,324

Welfare expenditure

(

(

)

(

)

(

ᇞ 1,252,036,677
ᇞ 651,110,722
ᇞ 26,941,399)(

1,771,746,908

Printed material expenses

320,817,102

389,732,830

ᇞ 68,915,728

Fuel, light, and water expenses

881,012,127

764,222,810

116,789,317

5,353,779,137

5,255,239,229

98,539,908

677,418,837

494,983,544

182,435,293

Supplies expenses

Expenses for commission
Collaboration research contribution

923,246,283

1,432,415,664

1,240,933,863

191,481,801

250,595,187

283,497,208

ᇞ 32,902,021

Tax and public charge

335,690,817

91,210,730

244,480,087

Travel and transport expenses

636,858,970

656,743,357

ᇞ 19,884,387

Communication and transportation expenses

91,915,907

92,366,634

ᇞ 450,727

781,067,328

540,555,971

240,511,357

4,721,401,214

4,970,720,217

ᇞ 249,319,003

26,557,614,522

26,886,404,916

ᇞ 328,790,394

Other expenditure
Depreciation allowance
Subtotal of project cost)

220,480,386

Rental rate

Repair expenses)

ᇞ 573,984,556

16,331,472,915
1,551,266,522

Expenditure

17,254,719,198)[2] Administrative expenses

142,705,000

1,160,323,775
153,450,000

Salary and benefit

581,649,898

602,898,980

ᇞ 21,249,082

Retirement benefit expenditure

120,858,888

159,482,836

ᇞ 38,623,948

Welfare expenditure
Allowance for retirement benefits for directors
transfer

138,100,650

147,491,959

ᇞ 9,391,309

92,720,000

97,000,000

Expenditure(

1,076,034,436(

793,224,716

)

)

(

(

820,784,224)(

ᇞ 84,289,339

Board members’ salary

Personnel expenditureᇞ 4,280,000)(

ᇞ 27,559,508

Supplies expenses

14,580,195

9,853,753

4,726,442

Printed material expenses

39,274,949

47,104,504

ᇞ 7,829,555

Fuel, light, and water expenses

32,893,152

34,654,296

ᇞ 1,761,144

Expenses for commission

123,918,659

148,730,694

ᇞ 24,812,035

Repair expenses

15,633,696

12,300,538

3,333,158

Rental rate

361,610,564

369,436,177

ᇞ 7,825,613

Tax and public charge

32,689,103

11,476,455

21,212,648

Travel and transport expenses

24,883,175

25,753,331

ᇞ 870,156- 36 -)

ᇞ 10,745,000)

Account
Communication and transportation expenses
Other expenditure
Depreciation allowance
Subtotal of administrative expenses
Total current expenditure
Current ordinary increase/decrease

Current fiscal year

Previous fiscal year

8,069,111

10,119,664

Increase/decreaseᇞ 2,050,553

100,225,129

111,739,142

ᇞ 11,514,013

39,446,983

39,615,670

ᇞ 168,687

1,869,259,152

1,981,107,999

ᇞ 111,848,847

28,426,873,674

28,867,512,915

ᇞ 440,639,241

ᇞ 1,950,003,167△34,539,498

ᇞ 1,915,463,669

6,436,400

21,140,000

ᇞ 14,703,600

6,553,046,014

205,938

6,552,840,076

06,137,246

ᇞ 6,137,246

6,559,482,414

27,483,184

6,531,999,230

189,746,896

419,245,269

ᇞ 229,498,373

14,1190

14,119189,761,015

419,245,269

ᇞ 229,484,254

6,369,721,399△391,762,085

6,761,483,484

2. Nonrecurring increase/decrease section(1) Nonrecurring profit[1] Fixed asset donated profit
Facility donated profit[2] Gain from sale of fixed assets
Gains on sale of land and other[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[2] Losses on sale of fixed assets
Losses on sale of facilities and otherTotal nonrecurring expenses
Current nonrecurring increase/decrease
Current ordinary net asset increase/decrease

4,419,718,232△426,301,583

4,846,019,815

Ordinary net asset beginning balance

35,943,847,923

36,370,149,506

ᇞ 426,301,583

Ordinary net asset final balance

40,363,566,155

35,943,847,923

4,419,718,232

95,658,920

128,148,715

ᇞ 32,489,795

61,500,458

22,104,699

39,395,759

311,725,606

434,047,929

ᇞ 122,322,323

ᇞ 154,566,228△283,794,515

129,228,287

Designated net assets beginning balance

903,791,662

1,187,586,177

ᇞ 283,794,515

Designated net assets final balance

749,225,434

903,791,662

ᇞ 154,566,228

41,112,791,589

36,847,639,585

4,265,152,004

II. Designated net asset increase/decrease section[1] Cash subsidy received
Subsidy received[2] Fixed asset donated profit
Facility donated profit[3] Transfer to ordinary net assets
Current designated net assets increase/decrease

III. Net assets final balance- 37 -

Breakdown of Net Assets Increase/Decrease Calculation Sheet
From Aril 1, 2013 to March 31, 2014
(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

0[2] Operating revenue(

Funded research operating revenue

2,474,101,545

23,565,000,000)(

2,024,089,394

Other operating revenue(

110,608,358

Interest received(

0

450,012,151[3] Other revenue

23,565,000,000

0 )
0

)

(

0

2,474,101,545
450,012,151

15,434,998 )(

126,043,356

7,604,783

7,604,783
80,880,097

Facility usage fee received

76,130,461

4,749,636

Miscellaneous revenue

34,477,897

3,080,579

37,558,476

311,725,606

0

311,725,606

2,896,435,509

23,580,434,998

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

2,024,089,394)(2) Current expenditure[1] Project cost
Personnel expenditure(

9,302,895,324

)

(

0

)

(

9,302,895,324

Salary and benefit

6,811,565,964

0

6,811,565,964

Retirement benefit expenditure

1,534,742,318

0

1,534,742,318

956,587,042

0

Welfare expenditure
Expenditure(

Supplies expenses

17,254,719,198)(

1,771,746,908

956,587,042

0 )(

17,254,719,198

0

1,771,746,908
320,817,102

Printed material expenses

320,817,102

0

Fuel, light, and water expenses

881,012,1270

881,012,127

5,353,779,137

05,353,779,137

Expenses for commission
Collaboration research contribution
Repair expenses)

677,418,837

0

677,418,837

1,432,415,664

0

1,432,415,664

Rental rate

250,595,187

0250,595,187

Tax and public charge

335,690,817

0335,690,817

Travel and transport expenses

636,858,970

0636,858,970

Communication and transportation expenses

91,915,907

0

91,915,907

Other expenditure

781,067,328

0

781,067,328

Depreciation allowance

4,721,401,214

0

4,721,401,214

Subtotal of project cost

26,557,614,522

0

26,557,614,522)[2] Administrative expenses
Personnel expenditure(0

Board members’ salary)(

1,076,034,436

0

)

(

1,076,034,436

142,705,000

142,705,000

Salary and benefit

0581,649,898

581,649,898

Retirement benefit expenditure

0120,858,888

120,858,888

Welfare expenditure

0138,100,650

138,100,650

Allowance for retirement benefits for
directors transfer

092,720,000

92,720,000

Expenditure(0

Supplies expenses

0

)

(

793,224,716 )
14,580,195(

793,224,716
14,580,195

Printed material expenses

039,274,949

39,274,949

Fuel, light, and water expenses

0

32,893,152

32,893,152

Expenses for commission

0123,918,659

123,918,659

Repair expenses

0

15,633,696

15,633,696

Rental rate

0361,610,564

361,610,564- 38 -))

Account

Project total
Ongoing projects (*)

Corporate total

Total

Tax and public charge

032,689,103

32,689,103

Travel and transport expenses

024,883,175

24,883,175

Communication and transportation expenses

08,069,111

8,069,111

Other expenditure

0100,225,129

100,225,129

Depreciation allowance

039,446,983

39,446,983

Subtotal of administrative expenses
Total current expenditure
Current ordinary increase/decrease

0

1,869,259,152

1,869,259,152

26,557,614,522

1,869,259,152

28,426,873,674

ᇞ 23,661,179,013

21,711,175,846

ᇞ 1,950,003,167

6,436,400

06,436,400

6,512,884,939

40,161,075

6,553,046,014

6,519,321,339

40,161,075

6,559,482,414

184,367,878

5,379,018

189,746,896

2. Nonrecurring increase/decrease section(1) Nonrecurring profit[1] Fixed asset donated profit
Facility donated profit[2] Gain from sale of fixed assets
Gains on sale of land and otherTotal nonrecurring profit(2) Nonrecurring expenses[1] Loss on sale of fixed assets
Loss on sale of tools and furniture[2] Losses on sale of fixed assets
Losses on sale of facilities and otherTotal nonrecurring expenses
Current nonrecurring increase/decrease
Current ordinary net asset increase/decrease

14,1190

14,119184,381,997

5,379,018

189,761,015

6,334,939,342

34,782,057

6,369,721,399

ᇞ 17,326,239,671

21,745,957,903

4,419,718,232

Ordinary net asset beginning balance

35,943,847,923

Ordinary net asset final balance

40,363,566,155

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

95,658,920

095,658,920[2] Fixed asset donated profit
Facility donated profit[3] Transfer to ordinary net assets
Current designated net assets
increase/decrease

61,500,458

061,500,458

311,725,606

0

311,725,606

ᇞ 154,566,228

0ᇞ 154,566,228

Designated net assets beginning balance

903,791,662

Designated net assets final balance

749,225,434

III. Net assets final balance

41,112,791,589(*) Content of ongoing projects: Research, surveys, and tests on electric power technology and the economy and general coordination of theaforementioned.

- 39 -

Notes for Financial Statements
1.

Important accounting policy
CRIEPI adopted the Public-Service Corporation Accounting Standard (April 11, 2008,

revised on October 16, 2009; Cabinet Office’s Public Interest Corporation Commission).
(1) Assessment standard and assessment method of valuable stock certificates
For other valuable stock certificates without market price, the cost method by themoving- average method has been applied.
(2) Depreciation method of fixed assets


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

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



Lease assets from finance lease trade other than ownership transfer was calculated forthe lease 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 accountreceivable and loan receivable, uncollectible amount is individually estimated to account forallowance.
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 fromthe present value method based on future estimated retirement benefit is account forallowance. And retirement benefits for counselors are accounted for the estimation at theend of period based on the related private regulation and expressed in the combined form.
(4) Account processing of consumption tax, etc.
Account processing of consumption tax, etc. is controlled by the before tax method.

- 40 -

2.

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

3.

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

Balance at the end of

Current increased

Current decreased

Balance at the end of

previous periodamountamountcurrent period

258,033,100

020,353,561

237,679,539

Ancillary buildings

2,621,757

01,310,829

1,310,928

Structures

2,672,890

0613,505

2,059,385

Machine and equipment

848,362,479

3,500,000

247,359,497

604,502,982

Tools and furniture

22,315,542

48,634,672

22,812,208

48,138,006

Lump-sum depreciable assets

1,103,211

1,193,786

1,126,164

1,170,833

Intangible fixed assets

2,370,580

8,938,760

1,454,529

9,854,811

3,435,900,000

003,435,900,000

7,700,000,000

900,000,000

4,300,000,000

4,300,000,000

500,000,000

950,000,000

01,450,000,000

05,997,134,033

0

5,997,134,033

12,773,379,559

7,909,401,251

4,595,030,293

16,087,750,517

Building

Special assets for reserves for lumpsum retirement benefits
Specific

assetsforreservesforacquisition of research facilities
Special assets for reserves for projects
Specific assets for purpose of setting
up bases
Total

4.

Breakdown of funding for fixed assets
The funding for fixed assets can be broken down as follows.
(Unit: yen)
Balance at the end(Including appropriation(Including appropriation(Including liabilityof previous period

from designated net asset)

from general net asset )relating item)

237,679,539(237,679,539)--

Ancillary buildings

1,310,928(1,310,928)--

Structures

2,059,385(1,197,680)(861,705)-

Machine and equipment

604,502,982(449,873,637)(154,629,345)-

Tools and furniture

48,138,006(48,138,006)--

Lump-sum depreciable assets

1,170,833(1,170,833)--

Intangible fixed assets

9,854,811(9,854,811)--

Subject
Building

Special assets for reserves for lump-sum
retirement benefits
Specific assets for reserves for acquisitionof research facilities
Special assets for reserves for projects
Specific assets for purpose of setting up
bases
Total

3,435,900,000-

4,300,000,000-(4,300,000,000)-

1,450,000,000-(1,450,000,000)-

5,997,134,033--(5,997,134,033)

16,087,750,517(749,225,434)- 41 -(11,902,625,083)(3,435,900,000)(3,435,900,000)

5.

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

6.

Acquisition value, accumulated depreciation and balance at the end of current period
for fixed assets
Acquisition value, accumulated depreciation and balance at the end of current period

for fixed assets are as follows.
(Unit: yen)
Subject

Acquisition value

Accumulated depreciation

Balance at the end ofcurrent period

Special asset(5,742,096,357)(4,837,379,873)(904,716,484)

Building

621,962,762

384,283,223

237,679,539

Ancillary buildings

131,084,924

129,773,996

1,310,928

Structures

28,268,470

26,209,085

2,059,385

4,840,218,324

4,235,715,342

604,502,982

106,381,811

58,243,805

48,138,006

Lump-sum depreciable assets

2,870,906

1,700,073

1,170,833

Intangible fixed asset

11,309,160

1,454,349

9,854,811

Other fixed asset(105,193,073,559)(78,801,174,888)(26,391,898,671)

Building

20,669,781,391

9,734,172,333

10,935,609,058

Ancillary buildings

13,299,250,201

9,961,714,738

3,337,535,463

Structures

5,784,927,321

4,514,835,361

1,270,091,960

Machine and equipment

49,577,549,211

41,348,884,775

8,228,664,436

Tools and furniture

11,113,980,787

9,220,938,466

1,893,042,321

Rolling stock and vehicle

114,601,685

64,335,092

50,266,593

Lump-sum depreciable assets

126,624,365

82,736,650

43,887,715

Intangible fixed asset

4,506,358,598

3,873,557,473

632,801,125

Total(110,935,169,916)(83,638,554,761)(27,296,615,155)

Machine and equipment
Tools and furniture- 42 -

7.

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

Claimable assets

Balance of claimablefor doubtful debts at

assets at the end of period

the end of period
Account receivable
Housing loans and welfare loans among
special assets of accrued retirement benefits
Total

8.

1,380,919,284

0

1,380,919,284

25,880,000

025,880,000

1,406,799,284

0

1,406,799,284

Contingent liabilities such as guarantee liabilities
A guarantee liability to employees housing loans is 1,838,958,409 yen.

9.

Breakdown of held-to maturity bond certificates and book values, actual values, andappraisal profit or loss
No held-to-maturity bond certificates are recorded.

- 43 -

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

Deliverer

Balance at theCurrent

Current

Balance at theend of period

increasedecreaseend of period

Describing
division inbalance sheet

SubsidiesSubsidy for projects assessing impact

Ministry ofon power systems of mass adoption of

Economy, Tradedestributed generation


solar power generation system at
CRIEPI’s laboratories in the Yokosuka
area in fiscal 2008


Project to promote introduction regional

1,418,703

9,752,187

2,482,602

0364,942

2,117,660

02,608,502

2,608,502

0-018,913,999

18,913,999

0

-

0

2,778,000

2,778,000

0-0994,804

994,8040-03,998,495

3,998,495

0-

132,719,859

51,730,000

99,705,154

84,744,705

1,117,937

2,119,504

3,237,441

0012,515,616

11,812,880

702,736

1,136,512

0189,797

946,715359,144,296

95,658,920

221,177,078

233,626,138

Development
New Energy
Promotion
Ministry of
Economy, Trade

Designatednet assets

Designatednet assets

and Industry

Applicability survey of manufacturing

Ministry of
Economy, Tradeand Industry

Research and development for
Advanced Humid Air Turbine (AHAT)
SystemMinistry of
Economy, Tradeand Industry

Experimental studies on nextgeneration two-way communication
output control technology0Industrial
Technology

energy transmission and distribution

using cement11,170,890

net assets

New Energy andExperimental study of next-generation

technology for fly ash concrete not135,362,135

Council

optimal control technology
75,154,361

Organization

new energy in fiscal 2009
0and Industry

Project to promote the introduction of

Designated210,516,496

Ministry of
Economy, Tradeand Industry

Fiscal 2013 subsidies for project costs
for development and verification oftechnology for solar power generation
output projections

Ministry of
Economy, Tradeand Industry

Subsidies

R&D for SiC innovative powerelectronics to create a low-carbon

Japan Society forsociety (super-thick membrane and

the Promotion ofmulti-layer SiC epitaxial wafer

Science

Designatednet assets

technology)


Research on impact of forest’s
watershed characteristics onhydroelectric power generation volume

2013 Review of measures forutilizations of micro hydro power
generation in forestry areasNational Land
Afforestation
Promotion-

Organization
National Land
Afforestation
Promotion

Designatednet assets

Organization

Fiscal 2010 grant for project toAssociation for

subsidize costs of development of dual

Promotion of

analog/digital equipment to alleviate

Digitalpoor reception

BroadcastingTotal- 44 -

Designatednet assets

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

Amount of money

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

209,810,053

Transfer by exception from specification as designated net asset

7,023,393

Transfer by implementing of project for which subsidy was received

94,892,160

Total

311,725,606

12. Trading content to related parties
No trading to related parties is recorded.
13. Important subsequent event
No important subsequent event is recorded.
14. Notes on assets from projects implemented
The balance of assets from projects implemented is as follows.
(Unit: yen)
Subject

Book value at start of fiscal year

Book value at end of fiscal year

Special asset(1,137,479,559)(904,716,484)

Building

258,033,100

237,679,539

Ancillary buildings

2,621,757

1,310,928

Structures

2,672,890

2,059,385

Machine and equipment

848,362,479

604,502,982

Tools and furniture

22,315,542

48,138,006

Lump-sum depreciable assets

1,103,211

1,170,833

Intangible fixed asset

2,370,580

9,854,811

Other fixed asset(30,245,662,536)(34,303,619,241)

Land

8,385,231,067

8,243,518,118

Building

9,127,939,763

10,722,257,606

Ancillary buildings

2,457,791,893

3,310,360,101

Structures

1,223,774,702

1,268,774,869

Machine and equipment

6,416,779,605

8,220,580,234

Tools and furniture

2,054,882,819

1,848,576,275

Lump-sum depreciable assets

9,409,129

19,873,527

Intangible fixed asset

38,318,640

43,043,318

Building

531,534,918

626,635,193(31,383,142,095)(35,208,335,725)

Total- 45 -

15. Retirement benefit related(1) Summary of employed retirement benefit
CRIEPI has established a defined-benefit pension system for its retirement pension
program and retirement lump sum grants.
(2) Retirement benefit liability and its contents(Unit: yen)
[1] Retirement benefit liabilityᇞ 23,085,693,035[2] Retirement pension asset

13,385,532,585[3] Non-accumulated retirement benefit ([1]+[2])ᇞ 9,700,160,450[4] Non-depreciated mathematical calculation differenceᇞ 1,518,347,591[5] Unamortized past service liabilities

1,575,187,141
ᇞ 9,757,000,000[6] Accrued retirement benefits for employees ([3]-[4]-[5])(3) Items for retirement benefit expense(Unit: yen)
[1] Working expense

992,023,469[2] Interest expense

228,075,681[3] Expectable operation benefitᇞ131,415,234[4] Mathematical calculation difference depreciation

1,091,979,670[5] Unamortized past service liabilities

ᇞ525,062,380[6] Retirement benefit expense ([1]+[2]+[3]+[4]+[5])1,655,601,206(4) Primary pension assets
The percentage of each main category making up total pension assets is as follows.
Bonds

54%

Stocks7%

Cash and deposits

5%

Other

34%

Total

100%

Total pension assets includes 26% in retirement benefit trusts established for the
corporation pension plan.
(5) 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 fromthe fiscal year in which they were incurred.

- 47 -

II. Supplementary Statement
1. Details on specific assets(Unit: yen)Type of asset

Book value at start of

Increase in current

Decrease in current

Book value at end of

fiscal period

fiscal period

fiscal period

fiscal period

Buildings

258,033,100

020,353,561

237,679,539

Ancillary buildings

2,621,757

01,310,829

1,310,928

Structures

2,672,890

0613,505

2,059,385

Machines and equipment

848,362,479

3,500,000

247,359,497

604,502,982

Tools and furniture

22,315,542

48,634,672

22,812,208

48,138,006

Lump-sum depreciable assets

1,103,211

1,193,786

1,126,164

1,170,833

Intangible fixed assets

2,370,580

8,938,760

1,454,529

9,854,811

3,435,900,000

003,435,900,000

7,700,000,000

900,000,000

4,300,000,000

4,300,000,000

500,000,000

950,000,000

01,450,000,000

05,997,134,033

0

5,997,134,033

12,773,379,559

7,909,401,251

4,595,030,293

16,087,750,517

Special assets for allowances for lumpsum retirement benefits
Specific

assetsforreservesforacquisition of research facilities
Special assets for reserves for projects
Specific assets for purpose of setting up
bases
Total special assets(Note 1) The increase in the special assets for the research facility acquisition allowance in this fiscal period is attributable to reserves for specificassets with the objective of acquiring the Materials Analysis Building (provisional name), and the decrease is attributable to the liquidation of
specific assets with the aim of acquiring the Power-generating Plant Thermal Hydraulics Laboratory, the No. 7 Laboratory, the test facility for the
carbonization of biomass, the test facility for development and evaluation of heat pumps in industrial and commercial use, the advanced
combustion test facility for diversification of available fuel types and the large-scale tsunami physical simulator.
(Note 2) The increase in specific assets as reserves for specific projects in this fiscal year was due to reserves for collaborative research contributions
and reserves set aside for specific projects with the purpose of moving research facilities to the Yokosuka area laboratories and taking safetymeasures.
(Note 3) Special assets set aside for the bases are assets for the purpose of establishing research bases in the Abiko and Yokosuka areas. Money fromthe partial sale of assets in the Komae area are set aside as reserves for this purpose.

2.

Breakdown of Allowances(Unit: yen)

Category

Allowance for employees
Allowance for retirement
benefits for directors
Allowance for retirement
benefits for employees

Balance at start of

Increase in current

fiscal period

fiscal period

Decrease in current fiscal period
Intended use

Balance at end of fiscal
periodOther355,000,000

253,000,000

355,000,000

0253,000,000

399,000,000

92,720,000

51,720,000

0440,000,000

9,383,000,000

1,655,601,206

1,281,601,206

09,757,000,000- 48 -

Audit Report by Third-Party Auditor
May 8, 2014
Central Research Institute of Electric Power Industry
President Masahiro Kakumu
Meisho auditors
Senior Partner
Managing Partner

Certified Public Accountant

YoshihiroWada
Certified Public Accountant

Managing Partner

Masayuki Tomikawa

We audited the financial statements of the Foundation of Central Research Institute ofElectric Power Industry (hereinafter referred to as “CRIEPI”) in the FY2013 business termfrom April 1, 2013 to March 31, 2014, 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, the subjects 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
based on our audit as an independent auditor. We conducted our audit in accordance withauditing standards generally accepted in Japan. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the consolidated financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts
and disclosures in the consolidated financial statements. The procedures selected depend on
our judgment, including the assessment of the risks of material misstatement of theconsolidated financial statements, whether due to fraud or error. In making those risk
- 49 -

assessments, we consider internal control relevant to the entity’s preparation and fairpresentation of the consolidated financial statements in order to design audit procedures thatare appropriate in the circumstances, while the objective of the financial statement audit is
not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. An audit also includes evaluating the appropriateness of accounting policies used
and the reasonableness of accounting 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 21, 2014
Central Research Institute of Electric Power Industry
President Masahiro Kakumu
Central Research Institute of Electric Power Industry
General Auditor, Kouichi Nishi
GeneralAuditor, Yoshihiro Naito
GeneralAuditor, 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, 2013 to March 31, 2014
and report the audit method and results as follows.
1.

Outline of the audit method
In accordance with the audit standards and the fiscal 2013 audit plan, we sought tofacilitate mutual understanding with directors, the Internal Auditing Department and other
employees, gathered information and worked to improve the environment for conducting
audits. In addition, we attended meetings of the Board of Directors and other important
meetings, received reports from directors and other employees regarding the performance of
their duties, and when deemed necessary, sought explanations, and perused important
documents in surveying business and financial conditions.
We received reports on the establishment and administration of the system establishedto ensure appropriate and efficient business operations (internal control system) fromdirectors and other employees, and sought explanations when deemed necessary.
Moreover, we examined whether the independent auditor was correctly performing theaudit and also received reports from the independent auditor on the execution of these
responsibilities and sought explanations when deemed necessary.
Based on the above methods, we examined the business reports and statements ofrevenue and expenditures (balance sheets and 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- 52 -

in carrying out their duties.
(3) There are no points to note regarding the establishment and administration of theinternal control system.
(4) The method of audit employed by Meisho auditors and the results thereof are properand the statements of revenue and expenditures and supplementary statements properly
presents CRIEPI’s financial assets and income and expenditures in all important
respects.

- 53 -