Research Plans&
Statement of Budget
FY 2013

March 2013

Central Research Institute of Electric Power Industry

Contents

Research Plans in FY2013
Page No.
On Preparation of FY2013 Research Plans and Statement of Budget ・・・・

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Overview of FY2013 Business Activities

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I.

Research Plans ・・・・・・・・・・・・・・・・・・・・・・

6II.

Research Promotion

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Research Activities

Administration
WorkforceStatement of Budget

Budget Compilation

Budget・・・・・・・・・・・・・・・・・・・・・・・

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Research Plans

On Preparation of FY2013 Research Plans and Statement of Budget
With no indication yet as to when nuclear power plants will resume operations, theelectric power industry’s business environment remains extremely difficult. Moreover,although the general direction of reforms to electric power systems has been outlined,
specific plans laying out how electric supply systems will be structured in the future andhow the technology base supporting this system will be maintained and expanded have
yet to be developed.
Given this situation, CRIEPI, the central research institute for the electric powerindustry, has focused its activities on the following three areas in order to help resolve
urgent issues and lay a foundation for future operations with our electric technology.
Reformulated research strategies and brush-up research plans (thorough review)
We discerned issues that must be addressed to develop a robust and flexible newenergy supply/demand structure, and identified the research and development subjects
essential to the electric power industry in order to resolve these issues. After clarifying
the role that CRIEPI should play and their priorities, we carefully reviewed our existing
research plans in terms of the electric power industry’s needs and reflected the results ofour review in future research plans.
Strengthened communication with electric power industry
As part of our efforts to brush-up our plans, we further strengthened both thequality and quantity of our communication with the electric power industry at all levels
and in all fields. This was intended to carefully identify the industry’s needs and ensurea shared understanding as we resolve the issues facing the industry.
Further reinforced research structure
While we expect research funding to continue to face constraints for extended
period of time, in order to provide high-quality, appealing research output, we will use
ingenuity in pursuing research, and also reinforce the research structure and streamline
management by drastically reviewing expenditures in all activities and making greater
reductions in personnel expenditures further.
We reflected the output from these activities as much as possible to prepare thefiscal 2013 research plan and statement of budget.
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CRIEPI functions as a pool of knowledge that has built up diverse know-how,human resources, facilities and wide-ranging domestic and international human
networks. In this role, we will fulfill our mission to support the electric power industry,
which is based on technology, by generating highly effective research results that meetthe expectations of the electric power industry and society.

-2-Overview of FY2013 Business Activities
Research Activities＜Research Plans＞
As in fiscal 2012, in fiscal 2013 CRIEPI will conduct research subjects consist ofpriority subjects, priority subjects with limited terms and basic technology subjects
under the three research pillars, described below, which govern our mid-term research
directives.
In light of the reformulation of our research strategies and brush-up of our researchplans (thorough review), we will further strengthen approaches that will help resolve theelectric power industry’s pressing issues, such as raising the nuclear power plant safety,
supporting the nuclear power plant maintenance, measures against nature disasters forelectric power transmission and distribution facilities, developing more advanced
thermal power technology and expanding renewable energy. At the same time, we will
maintain our underlying research capacity while significantly slowing the pace of
research on nuclear power uprates, the development and demonstration of the metal fuelFBR cycle, the development of functional materials such as high-temperature
superconductivity and high-performance SiC power semiconductors, and the promotionof electrification through the utilization of electric vehicles.
(1) Establishment of optimal risk management
We will conduct research on “nuclear power plant safety”, “radiation risks”,“nuclear fuel cycle and backend technology”, “natural disaster reduction on electric
power transmission and distribution facilities” and “evaluation and analysis ofenergy and environmental systems”, and contribute to manage and reduce the risks
related to the stable supply of electricity.
(2) Further improvement of facility operations and maintenance technologies
We will conduct research on “nuclear power plant maintenance”, “construction,
operation and maintenance of power generation facilities” and “operation andmaintenance of electric power transmission and distribution facilities”, andtechnically support the stable supply of electricity which is the responsibility of theelectric power industry.
(3) Development of a supply/demand infrastructure for next-generationelectric power
We will conduct research on “developing more advanced thermal power
technology”, “establishing next-generation power grid technology” and“development of energy saving technology”, and contribute to further enhance the-3-efficiency of electricity supply and electricity use, ensure energy security andrealize energy conservation and low carbonization.
＜Research Promotion＞
In research promotion, we will focus our efforts as follows.
 Augment research plans and generate interesting new subjects by continuing
brush-up (thoroughly review) and strengthening communication with the electric
power industry
 Further reinforce the research structure so that we can constantly produce appealing
and high-quality results despite funding constraint
 Maintain and strengthen research capacity and ability to resolve issues by steadily
introducing large-scale research facilities and building human networks withdomestic and international research institutes
Administration and Workforce
In consideration of the funding constraint, we will cut costs across all operations
and curb the number of employees thoroughly, but will continue to reinforce
reestablishment of the research bases, which are so essential to maintaining andimproving our future research capacity, while ascertaining our balance.

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Extensive review of expenditures to cut costs, including personnel costs
Reestablishment of the research bases in accordance with balance
Encourage personnel to exhibit skills and hire and retain diverse personnel inaccordance with business development
Reinforce presentation of results with the aim of enhancing CRIEPI’s value

Income and Expenditure Budget
Business activity income is expected to amount to 28.6 billion yen, the total of 26.3
billion (maximum set in line with fiscal 2012) in donation income, which accounts formost of CRIEPI’s revenue, business income and other income. Business activity
expenditures will total 29.12 billion yen, the total of 27.12 billion yen in business
expenditures and 2.0 billion in management expenses. This is a 510 million yen
decrease over the previous fiscal year. Non-business activity income will be down 230
million yen as a result of loss on retirement of equipment and other capital. Accordingly,
we expect general net assets to decline 750 million yen.
Designated net assets, whose use is restricted, are expected to decline by 200-4-million yen as a result of 90 million yen in subsidies and a 290 million yen transfer togeneral net assets.
As a result, net assets are expected to fall 950 million yen in fiscal 2013 (the total offluctuations in general net assets and designated net assets), which will result in a 35.64
billion yen balance of net assets at the end of the fiscal year.

-5-Research Activities
I. Research Plans
1. Priority subjects and priority subjects with limited terms
CRIEPI has selected issues from among the technologies that we believe are
essential or will be essential for the electric power industry that it will prioritize inaddressing, maintaining and continuing, and expanding. We pursue research on these 32
priority subjects. Those priority subjects into which CRIEPI’s comprehensive resources
should be invested for a quick resolution are designated “priority subjects with limited
terms” (10 subjects).
Of these 32 issues, seven have been newly designated this year, in order toreinforce initiatives to improve the safety of light water nuclear reactors, including
hazard assessment of natural external phenomena for nuclear reactors and fragility
assessment of nuclear reactors exposed to natural external phenomena. At the same time,
one of the eight subjects, research on the technology for disposing of powertransformers contaminated with trace PCBs, which was carried out in fiscal 2012, hasbeen completed as the anticipated goals were achieved. In light of the electric powerindustry’s needs, the eight subjects, including the development of a high-functioning
SiC power semiconductor device, energy conservation assessment for electric kitchensand the development of technology to promote electrification utilizing electric cars, will
no longer be priority subjects, but basic research capacity in these subjects will bemaintained.
Priority subjects and priority subjects with limited terms that should be addressed
together have been grouped into 11 subject groups so that research can be carried out
effectively. In particular, improving the safety and maintenance of light water reactors
have been identified as the most prioritized subjects, and the special research teams are
established in fiscal 2012. The teams will coordinate the expertise across several
specialized fields to enhance research activities. Below we outline the main researchplans in the pillars for our research for each subject group.
(1) Establishment of optimal risk management
With the aim of reducing risks and management associated with the stable supplyof electricity, CRIEPI evaluates the impact that social and economic changes andnatural phenomena have on the electric power industry, and addresses issues that offer
solutions, including social systems and frameworks.
Specifically, we address issues related to enhancing the safety of light water-6-

reactors and identifying radiation risks, and will focus even more on developing
technology that could alleviate these risks an urgent issue for the electric power industry.
Moreover, we will steadily promote research contributing to effective natural disastercountermeasures at electric power transmission and distribution facilities and researchon ways of supporting radioactive waste disposal operations. CRIEPI engages in
research related to the evaluation and proposal of energy and environmental policies
that can achieve social consensus from a scientific and objective perspective.
Nuclear power plant safety By participating in the analysis of international benchmarks, CRIEPI identifies
the issues with severe accident analysis code and clarifies the analysis models
in order to enhance effectiveness evaluations for measures to prevent or
mitigate severe accidents at nuclear reactors. In addition, CRIEPI develops
level 1 PRA (probabilistic risk assessment for core damage frequency) models
incorporating key safety component fragilities caused by external hazards forthe typical light water reactors.
 CRIEPI develops numerical analysis methods for estimating the behavior andthe impact force of tsunami driftage to apply the backfit program under the new
regulatory standards. In addition, we will introduce a tsunami and flood
channel that can generate tsunami at a scale of 1/3 to 1/10 the size of a nuclear
power plant so that the fragility against a tsunami can be assessed.
 We introduce a resonant oscillation table that can increase the acceleration ofexisting shaking capability (maximum of 2G) to the world’s highest
acceleration (20G), and will carry out oscillation experiments to verify thefunction assurance acceleration of crucial equipment installed in nuclear power
plants.
 Based on real-time monitoring data from the Tohoku earthquake, CRIEPI willdevelop methods that are required for earthquake- and tsunami-resistantdesigns for nuclear power plant facilities. They include an integrated source
model with earthquake and tsunami and a method estimating the magnitude oftsunami source. In addition, we will develop a numerical ash-fall model thatinvolves the climatic impacts in a dispersal process so that it can be used inassessing ash-fall hazards in the new regulatory standards.
 In order to obtain the verification data needed to appropriately assess fire
prevention countermeasures at nuclear reactors power plants, CRIEPI will
carry out high energy arcing faults tests with non-arc proof high-voltage
switch gears using high power test facilities.

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Radiation risks
 Based on health risk data on long-term exposure to low dose-rate radiation
obtained in epidemiological studies of residents living in high natural
background radiation areas, we confirmed that the health risks do not increaseat low dose-rate radiation of about 10 mSv/year, and we will work to reflect
these results in an UNSCEAR report through publishing papers.
 In order to underpin the above results, CRIEPI conducts experiments toestablish biological mechanistic models demonstrating that effects of low
doses-rate radiation would not accumulate due to the turnover of stem cells
within a living body as a global frontrunner.
Nuclear fuel cycle and backend technologies
 We will evaluate the impact that increasing the density of bentonite used as an
artificial barrier in low-level radioactive waste disposal and the curingconditions of cement have on the material characteristics by carrying out
laboratory experiments, and analyze the long-term alteration behavior in theartificial barrier. In addition, CRIEPI will carry out geochemical andgroundwater flow analysis and evaluation at the Rokkasho site to address
safety reviews at disposal facilities.
 As to spent nuclear fuel storage technology, CRIEPI will develop a method forthe remote measurements of the concentration of chloride adhering to thesurface of canisters, which may cause stress corrosion cracking (SCC), in orderto evaluate the occurrence of SCC in metal canisters stored in concrete casks.
Natural disaster reduction on electric power transmission and distribution
facilities
 We will analyze past data on damage to overhead transmission facilities due tosnow storms, and will make clear meteorological conditions and characteristics
of facilities where damage tends to occur, in order to develop practical methods
for predicting snow accretion and galloping. We will also construct full-scale
test facilities for snow-storm damage to overhead transmission lines, and will
carry out full-scale tests to elucidate snow-storm damage to overheadtransmission facilities and examine the effect of measures against it.
 We will quantitatively assess the electromagnetic immunity level of equipment
and identify malfunction mechanisms in order to establish guidelines oflightning protection for electric power equipment where information andcommunications technology (ICT) is applied.

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Evaluation and analysis of energy and environmental systems
 CRIEPI will survey the practical issues that would result from new rules andoperations associated with the separation of electric power transmission fromgeneration and supply, and will evaluate their impacts on the profitability,
investment planning and management policy.
 We will look at cost effectiveness to determine the effectiveness of programs inorder to present the best approach to the introduction of energy conservation
and renewable energy and environmental systems.
 We will present a rational and feasible long-term approach for the reduction ofcarbon dioxide and other greenhouse gas emissions, including emission
reduction measures, based on socio-economic evaluations taking into accountthe most recent climate science and low-carbon technology.
(2) Further improvement of facility operations and maintenance technologies
In order to provide technical support for the stable supply of the electricity that
supports public live and economic activity, we will carry out research and development
to enhance the effectiveness and economic value of power generating facilities anddistribution facilities.
Specifically, we will steadily develop multi-purpose supporting technology for thepreservation and management of light water reactors, essential to their ongoing
operation, as well as technology supporting the construction, operation and maintenanceof thermal and hydro power generating facilities and electric power transmission anddistribution facilities.
Nuclear power plant maintenance We will improve the accuracy of the current neutron irradiation embrittlement
prediction code at higher fluence region based on the analysis of surveillancedata. The results will be incorporated in a revision of the present code on
irradiation embrittlement prediction (JEAC 4201).
 Based on plant data, we will verify FALSET, software that CRIEPI developed
to predict flow acceleration corrosion (FAC) and liquid droplet impingement
erosion (LDI) for a pipe wall thinning management.
 In order to develop a method for evaluating the degradation of cable insulation
in a radiation environment, we will improve the current degradation prediction
method formulated from the irradiation experiments on the cable insulationmaterials containing different additives under various conditions. Then we willverify the prediction method using the data from aged cables in service.
 We will verify the validity of the test specimens of Performance Demonstration-9-

Construction, operation and maintenance of power generating facilities
 We will develop a creep life evaluation method for 12Cr steel girth weldedpipes based on a demonstration test result with actual pipes under
bending-internal pressure creep conditions as well as results of nondestructive
tests, observations of the microstructure and numerical analysis of the materials
in anticipation of the development of equipment diagnostic techniques for hightemperature structural components of high chromium steels..
 We will measure secondary air pollution, such as photochemical smog in urban
areas, and verify the accuracy of the air pollution prediction model developed
by CRIEPI. Using this model, we will assess the contribution of domestic andoverseas sources of secondary air pollution, such as thermal power generation.
 We will develop a model capable of predicting the risk of bird collisions towind turbines using data such as avian flight behavior, with the aim ofdeveloping an environmental impact assessment method for wind-generated
power.
 We will develop a method for accurately predicting and estimating sedimentdeposition in rivers and dam reservoirs by combining meteorological analysis
and flood analysis in order to support the safety and efficient operation of
hydraulic power dams.
Operation and maintenance of electric power transmission and distribution
facilities
 In order to support the efficient asset management of transmission anddistribution facilities, we will develop tools for the optimal preservation offacilities and display the replacement time, taking into account load records
based on system operation and the risk of accidents based on lightning risk.
 To establish soundness assessment technologies for aged overheadtransmission steel towers, we will identify mechanisms causing corrosion andmember vibrations, which are needed to elucidate and evaluate the degradation.
In addition, we will develop comprehensive diagnostic methods for thesoundness of steel towers, including a foundation stability assessment.
(3) Development of a supply/demand infrastructure for next-generation electricpower
To prepare for, minimize and overcome future risks, we develop next-generation
technical foundation that will enable greater efficiency and energy security in terms of- 10 -

both energy supply and energy use, and will address issues facing energy conservationand low-carbon systems.
Specifically, we will proactively develop technology for the effective use of unused
resources and low-grade resources. In addition, we will develop technology such as
next-generation grids enabling the smooth introduction of solar power and other sourcesof renewable energy into the power system, as well as technology that promotes theefficient use of energy and energy conservation, such as next-generation heat pumps.
Developing more advanced thermal power technology
 To diversify the types of fuel utilized in coal fired power plant, we will clarify
the suitable operation conditions during combustion of blends of bituminousand hard grindability coal.
 With the aim of increasing the biomass mixed combustion rate in coal-fired
power plant, we will develop the biomass carbonization technology by
evaluating the grindability and combustion characteristics of coal mixed withcarbonized biomass.
Establishing next-generation power grid technology
 We will firstly develop a numerical PV model which can represents the
dynamic behavior of photovoltaics inverters following system faults throughexperiments using power system simulator. Then, we will clarify the influenceof high penetration of PVs on the dynamic stability of high voltage networks,
through time-domain simulations using the developed PV model and someother related models which are already in use.
 We will identify the appropriate installment and operation methods for electric
storage devices, which contribute to the stable operation of systems, in order todevelop power supply/demand adjustment systems that can coordinate andsynchronize operations with customers’ equipment and distribution-type
energy systems. We will also develop a PV control method that can stabilize
the system’s voltage in concert with the voltage regulator in the high voltage
distribution line, and verify its functionality using simulated systems.
 We will develop tools supporting the design of smart meter wireless networks
that can rationally take account of the region’s characteristics and International
Electrotechnical Commission (IEC) standard communication protocols for the
prompt and efficient introduction of smart meters.
 We will analyze costs through demand response (DR) as a method of curbing
the reverse power flows which can occur with the introduction of large
volumes of PV and compare it to other methods (such as pumped hydropoweron the supply side and storage batteries on the demand side) in order to assess- 11 -

Development of energy saving technology
 With the aim of launching advanced heat pumps using a low-GWP (global
warming potential) refrigerant on the market, we will develop a hot-air drying
heat pump in industrial use and a hot-water space heating heat pump in
residential use in cold regions.
 We will evaluate the long-term life of mass-produced lithium secondary
batteries and develop technology to analyze the degradation of battery
performances in long cycling using non-destructive methods for utilization oflarge lithium secondary battery system, which contribute to stabilization ofelectric power transition and distribution.
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 maintaining and strengthening
our basic research skills that are the source of our problem-solving, using ourknowledge pool made up of knowledge useful on the frontlines, personnel withadvanced expertise, sophisticated research facilities and our overseas and domestic
human network. Specifically, we will built up data and knowhow through studies,
experiments and measurements on site, develop, establish and refine analytical methods
and approaches, and conduct basic research to flesh out new concepts. We will also
address issues that anticipate the needs of the electric power industry and society, andfoster new basic research strengths.
We will continue to work closely with the national government and electric powerindustry to address the Fukushima Daiichi nuclear accident and make our own
contributions to resolving technical issues for reactor decommissioning utilizing ourbasic technology.
We will designate 36 basic technology subjects in fiscal 2013 to capitalize on thestrengths and specialized skills of eight laboratories with specific research fields*.
(Examples of projects on basic technology subjects)
 We will analyze system reforms related to the use of nuclear power following
the earthquake, and identify areas of improvement in the nuclear powerdamage compensation system and nuclear power disaster prevention.
 We will analyze the behavior of platinum Group Metals and the mechanisms offormation of the calcined layer in the glass melting furnace as the final stage ofthe nuclear fuel reprocessing in order to support the completion of the- 12 -

 We will take data on electrochemical properties and reduction behaviors byconducting experiments using simulated fuel debris containing Pu as part of abasic investigation toward the decommissioning of the Nos. 1-4 reactors at the
Fukushima Daiichi Nuclear Plant.
 We will thoroughly analyze and evaluate the test data from the Nakoso IGCC
(Integrated coal Gasification Combined Cycle) demonstration plant, andinvestigate the statuses of the operations and maintenances of overseas IGCC
plants.
 To enlarge the effective use of coal ash, we will enhance developmental
research with evaluating the possibility of commodifying the zeolite generated
concrete manufacturing technology that we developed by utilizing unused
low-quality fly ash. We will also develop a sodification process of fly ash inwhich the leaching of trace elements is controllable and massive production isachievable.
 We will establish an analytical modeling technique for improving the existing
earthquake-resistance evaluation tools of transformer equipment based on
implementation of the knowledge of both shake table experiments ontransformer bushing and earthquake observations on aerial equipment at
substation.
 We will improve the convenience of CRIEPI’s Power System Analysis Took
(CPAT) as well as tailor it to its use in electric power operations.
We will enhance the functions of the XTAP (eXpandable Transient Analysis
Program) by speeding up the computation rate, adding optimization function,and so on.
 We will develop tools supporting the design of the rinsing procedure and cost
approximation work to achieve low-cost rinsing process for powertransformers contaminated with poly-chlorinated biphenyl (PCB).
 We will accumulate outdoor performance data of domestic photovoltaic
modules as well as foreign ones, and will evaluate electrical performancedegradation from analysis of the outdoor data.


Note *Socio-economic Research Center, System Engineering Research Laboratory,
Nuclear Technology Research Laboratory, Civil Engineering Research Laboratory,
Environmental Science Research Laboratory, Electric Power Engineering ResearchLaboratory, Energy Engineering Research Laboratory and Materials Science ResearchLaboratory- 13 -

II. Research Promotion
1. Augmenting research plans by continuing with brush-up (thorough review) We are augmenting our research plans by continuing with brush-up of researchplans pursued in fiscal 2012. In fiscal 2013, we will place particular emphasis on
clarifying CRIEPI’s role, and will focus our resources on specific areas, as well as
create new issues.
 We will participate in various committees, committees with a special focus,
gatherings for exchange of opinions, and research societies to reinforce
communication with electric power companies and carefully identify informationand opinions at various levels. This will enable us to accurately reflect front-line
needs in our research plans in a timely manner.
 We will provide information on our basic technology strength in a way that is easy
to understand and use, and will also augment our liaison department so that we canprovide the electric utility industry with prompt and accurate solutions.
2. Further strengthen research structure On the assumption that budget constraints will continue for a considerable period,
we will strengthen our research structure so that we can continue to generate
appealing, high-value results. Specifically, we will first rigorously select priority
research subjects, and then reduce the number of experiments, compensate forfewer experiments by expanding the application range of our simulation technology.
By using ingenuity in pursuing our research projects, we intend to further reduce
operating costs.
 We will continue to carry out our research on the assumption that budget
constraints will continue for a considerable period, and will strengthen our research
structure so that we can continue to generate appealing, high-value results.
Specifically, we will first rigorously select priority research, carry out researchevaluations and endeavor to raise the quality of our research output.
3. Maintaining and enhancing research capacity and problem-solving skills
 We will establish research bases and introduce carefully selected, large-scale
research facilities in order to build the research foundation that will serve as thesource of impressive research skills in the future. When introducing researchfacilities, we will strive to ensure that specifications are tailored to the level needed
for the research plans, and we will also reduce costs by effectively using existing
facilities and utilizing competitive bids. The main facilities that we plan to- 14 -

 Tsunami physical simulator: To be used to evaluate safety of electricity
facilities in the face of a tsunami Strong shake generator: To verify the seismic margin of important equipmentin nuclear power plants
 Full-scale test facilities for snow-storm damage to overhead transmission lines:
To closely study snow-storm damage to overhead transmission lines
 Advanced combustion test facility to utilize various types of solid-fuel: To
contribute to the diversification of fuel types and the reduction of fuel costs incoal-fired power station
 Light water reactor fuel coolant limitation testing facility: To utilize in research
to enhance the safety of light water reactors (planned completion date of fiscal
2014)
With a view to the future, we also consider the need to maintain and develop basic
technology capacity and ensure the diversity of our research fields. In addition, we
train personnel that can apply expertise in a specialized field to problem-solving byinteracting with the electric power industry on its frontlines.
We will build and expand a highly effective network with Japanese and overseas
universities and research institutes with impressive expertise (such as the US-based
Electric Power Research Institute, Électricité de France, Japan Atomic Energy
Agency and the Marine Ecology Research Institute) in order to produce effective
and advanced research results through mutually complementary scientificknowledge.

4. Management and application of intellectual property
 We endeavor to strategically secure, maintain and utilize intellectual property inaccordance with the characteristics of our research output, emphasizing intellectual
property that can be expected to make a significant contribution to the electric
power industry and society. In particular, we carefully review the need to submit
and maintain and overseas patents in terms of cost effectiveness, and resign patents
that are expected to have low utilization.
 Being aware of our social responsibilities as a research institute, we properly
manage the security trade control on our research output and carry out extensive
risk management, including the prevention of misconduct.
 We will continue to offer a free download service for our research reports in orderto encourage the broad use of our research output. In addition, we publish The
Intellectual Property Report, which summarizes our activities in terms of our- 15 -

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We will proactively provide our patents and software with external customers toencourage their utilization. We will also strive to spread technology to engineers
working on the front lines of industries through technology exchange courses andtechnology lectures in order to contribute to the electric power industry and society.
We will capitalize on our strengths as an academic research organization toparticipate in national and academic committees, thus contributing to theestablishment of specifications, standards and technical standards for the energy
and environment.

5. Promoting funded research We will proactively undertake founded research that meets the needs of the electric
power industry, and will promptly provide the anticipated results. We will also
receive government funding for research that meets our research strategies and thatwill contribute to the electric power industry through the establishment ofspecifications and standards.
 As an independent testing center, we will facilitate the activities of the PD Center,
which gives certification exams for experts of ultrasonic inspection working with
nuclear power plant components. We will also facilitate activities of the HighPower Testing Laboratory, which performs short-circuit tests on electric power
equipment.

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Administration
1. Thorough review of spending for cost-cutting
 We already cut costs by about 10% across business activities in fiscal 2012. In
addition to this, we identified room for further cost-cutting while still ensuringsafety and maintaining the quality of operations. We will cut operating costs by afurther 10% compared to fiscal 2012.
 We will prepare rational specifications and strengthen our supervisory system at thepre-order stage and encourage competition with our commissions and procurement,with competitive bids as our guiding principle. We will clarify standards and ensure
suitability in those cases in which there is only a limited tender contract.
 We will make our decisions on facility construction and upgrade by carefully
reviewing priorities for the facility environment based on needs and urgency,
including plans that were put off in fiscal 2012.
 Anticipating an increase in fixed asset taxes as we transition to the status of anon-profit general foundation, we will retire and sell idle facilities and attempt toreduce our tax burden and maintenance costs. In addition, we will endeavor to
reduce maintenance costs by reviewing the need, priority and repairs required forthe facilities and assets that we will continue to use.
 We will increase the cuts to personnel expenses that we have already made to 25%
for executive compensation and a maximum of 10% for senior officers’ annual
salaries. In addition, we will consider reducing general employees’ salaries by
about 10% in line with income and expenditure as we endeavor to make further
reductions. We also plan to take measures to reduce spending on the benefit
programs overall, for example by closing directly-operating recreation facilities andreducing the cafeteria plan.
2. Establish research bases in line with income and expenditure Research bases are essential in maintaining and improving our research capacity asa central research institute for the electric power industry and a research institution
with advanced scholarship for the future, and as such we establish these researchbases with unflagging resolve. When doing so, we move ahead while at the sametime flexibly adjusting both timing and scale to fit our revenue.
 We are moving ahead with a detailed design for the laboratories for the large-scale
research facility at the research base in the Yokosuka area, which we hope will
become a research base for the energy industry technology. We will begin
construction on offices in preparation for staff to be shifted from the Komae area.
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We will prepare a specific plan and gradually begin carrying it out in the Abikoarea, which is intended as a research base for nature and the environment, on thepremise that the existing facilities and equipment will be used effectively.
We will begin making arrangements for the equipment transfer, removal andrelocation at the research base in the Komae area, whose research equipment andpersonnel are to be transferred to the Yokosuka area. In order to raise the funds
needed for the construction of the aforementioned research base, we will begin
preparations and outside coordination to sell some of the land (about 10,000m2 ofabout 57,000m2 total land area).
In line with progress made in focusing our research sectors at these two researchbases, we will begin considering specific organization and system designs for thetransfer and reorganization of the administrative and management divisions withthe aim of streamlining operations to address cuts in administrative personnel,
reduce operating costs and strengthen the research support system. We will makepreparations to implement these measures from fiscal 2014.

3. Promoting personnel’s job performance and hiring diverse staff in line withresearch development
 Personal support that helps each individual employee demonstrate their skills is themost important point of our human resource management, and we strive to create
an environment that will further enhance its effectiveness. In addition, we willconsider introducing new personnel measures and benefit systems that will raise
motivation in line with the distinct features of research positions and administrative
positions.
 We will consider introducing and creating a new framework with more expansive
possibilities in terms of compensation and benefits, as well as responsibilities andauthority by setting employment contract periods flexibly. This will enable CRIEPI
to hire research staff on an ad-hoc basis and thus correspond to our future researchdevelopment based on brush-up of our research plans.
 While we will continue to reduce administrative personnel, we will introduce
limited-term administrator system for formulaic, standard general administrative
work in order to diversify our staff employment possibilities.

- 18 -

4. Strengthening output presentation to enhance CRIEPI’s value
 We will continuously disseminate information such as research results andactivities in a timely manner through various media with the aim of enhancing ourpresence as a research institution. Specifically, by effectively circulating
information based on original research results and scientific objectivity, we willcontribute to the promotion of social understanding of the issues facing the electric
power industry and initiatives designed to resolve them. Moreover, we will
introduce our research results based on our advanced expertise and collective
strengths at research symposiums and in publications such as “TOPICS.” We will strive to strengthen our ability to collect information from all those related
to the electric power industry in order to carry out public relations activities on
external situations and the needs of the electric power industry. Moreover, we willproactively exchange views with authorities on science and industry experts andreflect these views and information effectively in our business operations.
5. Sound and rigorous pursuit of business operations
 We will strive to strengthen governance and risk management and establish andimprove compliance awareness among executives and regular employees, as well as
ensure sound and rigorous administration with radical autonomy as a non-profit
general foundation.
 We will complete our Plan on Expenditures for Public Benefit within the intended
period.
 We view information security as the most important issue for management as any
security breaches could put the existence of research institute at risk. We will
ensure a rich administrative structure by improving technological countermeasures.
We will also strengthen IT-BCP measures from a medium- to long-term
perspective.

- 19 -

Workforce
The current workforce numbered approximately 840 as of the start of fiscal 2012,
and CRIEPI’s basic policy aims to reach an equilibrium point of about 800 by the endof FY2015.
Accordingly, we will keep the number of research staff unchanged , but will
gradually decrease the number of office staff through streamlining office work andutilizing human resources, and will also be selective in accepting other staff, such as
special visiting researchers. We will also carefully review the number of personnel
needed for future projects and their makeup, and after reviewing the need for researchand operation on an individual basis, we will consider initiatives to reduce the workface,for example through outsourcing and a suspension of the employment of temporary
contract employees.
The workforce in fiscal 2013 is as follows.
(Expected as April 1, 2013)
Item

Number (people)

Percentage
distribution (%)

722

87.9

1. Research※Including 26 visiting
researchers〔Breakdown〕〔100.0〕(1) Electricity

115

15.9

(2) Civil Engineering and Construction

92

12.7

(3) Mechanical

100

13.8

(4) Chemistry

69

9.6

(5) Biology

57

7.9

(6) Nuclear Engineering

45

6.2

(7) Environmental Science

43

6.0

(8) Information and Communication

38

5.3

(9) Socio-economics

49

6.8

(10) Research Support and Management

114

15.8

99

12.1

821

100

2. Office work
Total

- 20 -

Appendix Table: Operations in Clause 1, Article 4 of the Articles of Incorporation and the corresponding
research activities in fiscal 2013 are as follows.
Operations in Clause 1, Article 4 of the Articles ofIncorporation

Corresponding plan

(1) Research, studies and experiments on the

Research activity I. Overall research planelectricity, civil engineering, environment, thermal

Research activity II. Overall research promotion

and nuclear power, new energy and electricity
applications related to energy transmission anddistribution(2) Research and studies on economics andResearch activity I. Overall research plan

legislation related to electricity

Research activity II. Overall research promotion(3) Dissemination and utilization of output such as

Research activity II. Research promotion 4

preparation of specifications and standards related to
power technology(4) Other items needed to achieve objectives of ageneral foundation- 21 -

No corresponding plans in fiscal 2013

Statement of Budget

Budget Compilation
The fiscal 2013 budget for CRIEPI operations was compiled based on researchplans. The main points are as follows.
1. Changes in general net assets(1) Ordinary revenue amounted to 2,863 million yen.
 Benefit income from electric utility companies amounted to 26.3 billion yen.
 Business revenue stood at 1,910 million yen.
Of this business revenue, revenue from nationally funded research accounts for 1.0
billion yen.
Other business revenue totals 910 million yen, including revenue from short-circuit
tests and revenue from joint research.
 Other revenue, such as interest payments, amounted to 100 million yen.
(2) Ordinary expenses amounted to 29,120 million yen.
 Business costs related to research totaled 27,120 million yen.
Of these business costs, personnel expenditures such as salaries and retirement
benefit costs, totaled 10 billion yen.
Operating expenses, including consumable costs, outsourcing costs, andamortization costs amounted to 17,120 million yen.
 Management costs related to headquarters operations were 2.0 billion yen.
Of this, personnel expenditures such as compensation for executive officers,salaries and retirement benefit costs totaled 1,170 million yen. Operating expenses,
such as consumable costs, totaled 830 million yen.
(3) Non-recurring costs totaled 234 million yen, consisting of losses on the retirement of
fixed assets.
2. Changes in designated net assets(1) Revenue from funded research, including revenue from the Japan Society for the
Promotion of Science, is 90 million yen.
(2) Transfers to general net assets totaled 293 million yen due to amortizations related
to the designated net assets included in special assets and other factors.
3. Balance of net assets at fiscal year-end
Net assets in this fiscal period fell a total of 954 million yen, which is the sum offluctuations in general net assets and designated net assets. Accordingly, the balance of
net assets at the end of the fiscal year was 35,641 million yen.
- 23 -

BudgetThe fiscal 2013 budget, compiled based on the above, is as follows.
Fiscal 2013 Budget for Revenues and Expenditures
From April 1, 2013 through March 31, 2014
(Unit: Million yen)
Subject

BudgetRemarks

I Changes in unrestricted net assets
1. Operating activities(1) Revenues and gains① Benefit income
Current benefit income

26,300② Business income

1,910

Funded research business income

1,000

Other business income

910③ Other income

100Interest revenue

5

Facility use fees received

90

Miscellaneous income

5④ Transfers from restricted net assets

293

Total revenue and gains

28,603(2) Expenses and losses① Expenses for projects and programs
Personnel expenditures

10,000Wages and allowances

7,460

Retirement benefit expenses

1,540

Welfare expenses

1,000

Operating expenses

17,120Consumable costs

1,080

Publication costs

400

Lighting, heat and water utility costs

920

Outsourcing costs

5,780

Joint research contribution

640

Repair costs

1,270

Rental costs

250

Tax and dues

122

Travel and transportation costs

720

Communication and transport costs

110

Other operating expenses

888

Amortization costs

4,940

Sub-total for expenses for projects and programs

27,120② General and administrative expenses
Personnel expenses

1,170

Executive officer compensation

153

Wages and benefits

627

Retirement benefit expenses

128

Welfare expenses

160

Provision for directors’ retirement benefits

102

Operating expenses

830

Consumable costs

10- 24 -

Publication costs

58

Lighting, heat and water utility costs

29

Outsourcing costs

115

Repair costs

15

Rental costs377

Tax and dues

10

Travel and transportation costs

38

Communication and transport costs

18

Other operating expenses

110

Amortization costs

50

Sub-total of general and administrative expenses

2,000

Total expenses and losses

29,120Total changes in operating activities for the year

ᇞ517

2. Changes in non-operating activities(1) Non-operating revenue
Total non-operating revenue―(2) Total non-operating expenses and losses
Loss on retirement of fixed assets

234

Total non-operating expenses and losses

234
ᇞ234

Total changes in non-operating activities for the year
Total changes in unrestricted assets

ᇞ751

Unrestricted assets at beginning of year

35,667

Unrestricted assets at end of year

34,916

II Changes in restricted net assets① Subsidies received

90② Transfer to unrestricted net assets

293
ᇞ203

Total changes in restricted net assets for the year
Net restricted assets at beginning of year928

Net restricted assets at end of year725

III Net assets at end of year

35,641- 25 -