Research Plans&

Statement of Budget
FY 2011[Revised version]

October 2011

Central Research Institute of Electric Power Industry

Contents

Research Plans
Revisions to Fiscal 2011 Research Plans and Statement of Budget .............................................1

Research Activities .................................................................................................................6
I. Research Plans.................................................................................................................6
II. Research Promotion ..................................................................................................... 12

Administration ............................................ エラー! ブックマークが定義されていません。
Workforce ........................................................................................................................... 19

Statement of Budget
Budget change ..................................................................................................................... 22

Research Plans

Revisions to Fiscal 2011 Research Activities andStatement of Budget
In the fiscal 2011 research plan established on March 10, 2011, Central Research Institute of ElectricPower Industry (CRIEPI) aims to focus its Research on Nuclear Technology, Stable Power Supply
Technology, and Environment and Energy Utilization Technology, as well as present solutions to
issues such as the maturation of the electric power industry and various rising risks and issues thatwill lead to the creation of a future society by advanced electrification.
The Great East Japan Earthquake that struck east Japan on March 11, just after CRIEPI had
established this plan, shook up trust in society and the economy, as well as trust in the science andtechnology that support them.
In particular, the accident at Fukushima Daiichi nuclear power plant did wide-ranging and severe
damage with a grave impact on the plant’s surrounding area and beyond. Restoring the environment
in this region and returning the evacuated residents to their homes as soon as possible is the mostimportant issue here. Resolving this means that the accident must be brought under control
immediately and measures taken over the long term. This requires that we take up challenges that go
beyond the traditional research framework and revise the conventional concept of safety and otherissues in the research and development that will support the recovery from the earthquake, includingthese activities.
In this situation, since the earthquake CRIEPI has invested in its human resources and technology
basis across a wide range of research fields to meet the diverse requests from the electric powerindustry and national government and utilized its knowledge to provide as much support as possible.
Moreover, we have reviewed our medium to long-term research expansion from this point andrevised the direction of our research so that CRIEPI is better able to contribute to the resolution ofissues resulting from the earthquake and issues requiring new measures. Specifically, we haveidentified three new research pillars: “the establishment of optimal risk management,” “Further
improvement of facility operations and maintenance technology” and “development of a
supply/demand infrastructure for next-generation electric power.” With research to support therecovery from the disaster as the greatest priority, we scrutinized our research plans thus far, bearing
in mind the changes in social values, and drastically revised our research activities overall. Goingforward, we will focus on technology development related to these research pillars with the aim ofbuilding a safer and more stable society for the future.
In addition to these revisions to our research activities, we revised the administrations and budgetthat support these activities in line with the current external conditions and budget status.
Accordingly, based on these changes, we have revised our fiscal 2011 Research Plans and Statementof Budget.
All CRIEPI employees will work together on the research activities outlined in this plan to generate
results that can be utilized and contribute to the electric power industry and society.
12Overview of Fiscal 2011 Research Activities〈Research Activities〉
Since the Great East Japan Earthquake and the accident at the Fukushima Daiichi nuclear power
plant, we have mobilized our knowledge and technology as well as our staff, ranging across various
research fields such as earthquakes, tsunami, nuclear power, radiation, and atmospheric and marine
diffusion, to provide the maximum amount of support in response to urgent demands from theelectric power industry and the national government.
Moreover, we have established the “research pillars” described below. These represent the medium
and long-term direction of our research, so that we may solve the issues posed by the earthquake andthe issues that require new responses from the electric power industry, build a more flexible andresilient society and accurately respond to society’s demands, which have changed dramaticallysince the earthquake.
We believe that we must identify and evaluate the risks associated with the stable supply of electric
power, the foundation of society, and build technology that can reduce and manage these risks.
Accordingly, our first pillar is the establishment of optimal risk management.
It is the responsibility of the electric power industry to support the Japanese economy with a stablesupply of electric power as it tries to recover. So that CRIEPI may provide the technical support forthis endeavor, the second pillar of our research is the further improvement of technology for theoperation and maintenance of power generation facilities and transmission and distribution facilities.
To prepare for future risks, minimize these risks and overcome them, developing the supply/demand
infrastructure for the next-generation electric power that will enable greater efficiency of electric
power supply as well as energy security is an issue that should be aggressively addressed by research
institutes supporting the electric power industry. Accordingly, this is our third pillar.
Under these research pillars, we thoroughly revised all research activities by focusing resources on
issues with the greatest urgency and delaying some initiatives with future technologies. The structureof our research activities is as follows.

3(1) Establishment of optimal risk management
Activities that assess the impact and risk posed by changes in natural phenomena and thesociety and economy to the electric power industry, and propose solutions to these risks,
including social systems and mechanisms―Energy policy analysis, improvement of earthquake resistance assessment, evaluation of radiation safety
and environmental impact, support for nuclear fuel cycle backend technology, development of natural
disaster reduction measures for transmission and distribution facilities, global warming projections andimpact assessment(2) Further improvement of facility operations and maintenance technology
Activities that aim to refine operation and maintenance technology for electric power
facilities and continue a stable supply of electric power―Developing technology for plant life management of light water reactors, support for theoperation and maintenance of electric power generating facilities, support for theoperation and maintenance of electric power transmission and distribution facilities(3) Development of a supply/demand infrastructure for next-generation electric power
Activities that lead to the establishment of power supply/demand infrastructure fornext-generation electric power to enable greater efficiency in electric power supply and use
and ensure energy security―Development of next-generation thermal power technology, next-generation power gridtechnology, development of electrification and energy-saving technology
In pursuing our research, we will focus our efforts as follows.
(1) Developing an organizational structure to effectively pursue research to support therecovery from disasters, the most important near-term issue, in line with required content
and timeframe(2) Continuous improvements in our research capability and deepening and strengthening
activities aimed at exercising our comprehensive strengths through internal and external
cooperation(3) Appropriate management and more constructive utilization of intellectual property with theaim of maximizing the outcome—the impact on the electric power industry and society

4〈Administration〉
In order to make the research related to the disaster recovery our top priority, we will shift staff andfunding and take the following steps to respond appropriately to the changes in conditions affecting
CRIEPI’s operating environment and build a framework for our future research expansion.
(1) Cut costs further and effectively use assets by reviewing the content and process of
research activities in light of changes in revenues and expenditures, as well as internal
administration(2) Take steps to set up institutional design and internal control systems as part of ourtransition to a status as a non-profit general foundation to respond to the reformation of
public interest corporation system(3) Reexamine all activities such as improving work assignments and promotions to encourage
individuals to exercise their unique skills and strengthening information dissemination andpublic relations activities to enhance CRIEPI’s value〈Income and Expenditure Budget〉
In light of the impact of the earthquake, we have revised our income and expenditure budget byreviewing benefit income and reexamining expenditures to reflect the prioritization ofearthquake-related research and changes to plans to introduce large-scale research facilities. As aresult of these revisions, our budget has been reduced by 1.64 billion yen compared to the initialbudget to 32.27 billion yen.

5Research Activities
I. Research Plans
In fiscal 2011, CRIEPI will conduct the research described below under the concept of three newresearch pillars and achieve the needed outcome in a timely and reliable manner. We will be aware of
the conditions facing the electric power industry and society, including the earthquake’s impact, andwill utilize our knowledge, technology and staff to the maximum extent possible to respond flexibly
and promptly to the new issues that emerge.

1.

Project Subjects

We select issues on which the electric power industry and society have a great need for research andthat require timely results and applications as our 38 project subjects. We then capitalize on
CRIEPI’s collective strength to promote research in these project subjects. The main research to be
carried out is described below.

(1) Establishment of optimal risk management
We will steadily pursue research on issues that assess the impact and risk posed by the changes innatural phenomena and society and economy to the electric power industry, and propose solutions tothese issues, including social systems and mechanisms.
In particular, we will accelerate our efforts to establish the method of adequate seismic design for
nuclear power plants, evaluate environmental contamination by radioactive substances and assess

various decontamination technologies, and evaluate the risk of low-dose radiation. In addition, we
will work to develop forecasting methods for natural hazards and technologies helping to alleviate
the damage caused by natural disasters on transmission and distribution facilities, and develop
technologies supporting disaster recovery.

Energy Policy Analysis: From the academic and objective perspectives, we will propose adesired future for the electric power framework in Japan that can achieve social
consensus. We will also provide various policy proposals by compiling information on
and analyzing plausible approaches to energy technology policies such as thedevelopment of renewable energy and energy-conservation, and the technology transfer
to developing countries, as well as the assessment of their impact on the electric powerindustry and society in Japan
6

Improvement of Earthquake Resistance Assessment: It is essential that qualified
earthquake resistant design practices for nuclear power civil engineering structures
are reconstructed, in light of the moment magnitude 9.0 earthquake occurred in the
Tohoku region followed by offsets among several faults. These practices would
provide indicators for the correlation among active faults that are important toestablish reference seismic ground motions. Moreover, we will promote research on
on-site slope failure, one of the sequences caused by extremely strong earthquakes,
focusing on safety assessment and slope failure measures taking into account therealistic impact of three-dimensional terrain.
Radiation Safety and Environmental Impact Assessment: The release of radioactive
substances due to the Fukushima Daiichi nuclear power plant accident led to serious
environmental contamination (atmosphere, marine, groundwater and soil). In order toresolve this environmental contamination, we will use recently developed evaluation
methods to ascertain the situation in detail and assess the effect of various
decontamination technologies. We will obtain scientific data on the impact of low-doseradiation and clarify the mechanisms involved. Moreover, we will proactively disclose

the information with the aim of reflecting the research results in international radiation
protection standards and proactively disclosing this information.

Nuclear Fuel Cycle Backend Technology: We will develop technology designed tomitigate SCC in the metal canister in the storage concrete casks which offer suchpromise as a next-generation storage method for spent fuel. The results will then bereflected in a specification for concrete cask storage. Moreover, we will enhance theperformance assessment of the engineering barrier materials that play an important rolein the deep subsoil disposal of low level radioactive waste, and will develop methods formaterial durability resistance inspections using the Torrent air permeability test. Our
research on the disposal of high level radioactive waste will include the long-term
deformation estimation on the bedrock near the disposal hole and the engineeringbarriers by scaled tests using centrifugal loading apparatus.

Development of natural disaster recovery technology for transmission anddistribution facilities: In order to contribute to effective measures of transmission anddistribution facilities on the damage caused by natural disasters, we will endeavor to
improve the existing disaster recovery systems on power distribution facilities based on7the measurements taken at the time of the Great East Japan Earthquake and thus enhancetheir reliability. We will strive to improve snow-related damage prediction technology
based on field measurements, laboratory experiments and analysis results thus far, inorder to refine evaluation of wind, snow and salt damage to transmission facilities, whichis extremely important for the electric power industry. We will also clarify the effect of
products on snow storm damage.

Global Warming Prediction and Its Impact Assessments: To support the examination of
measures mitigating global warming caused by CO2 emissions, we will develop a
support tool for global warming countermeasures that incorporates information on theenergy and economic impact, in addition to the simple assessment tool for climatechange that we have already developed. Moreover, we will predict changes such as
typhoons and heavy rain consequent with the global warming climate and identify the
impact of these changes on hydroelectric power generation facilities and transmission
facilities. This eventually promotes discussions on adaptation issues for global warmingin the electric power industry.

(2) Further improvement of facility operations and maintenancetechnology
We will address technology development issues that aim to improve operations and maintenancetechnology of electric power facilities and sustain a stable supply of electricity.
In particular, we will carry out the R&D needed to continue operations of light-water reactors
and develop operations and maintenance technology for other power generation facilities andtransmission and distribution facilities in order to support the Japanese economy after the earthquakewith a stable power supply.

Research on Plant Life Management of Light Water Reactors: To ensure the safe andstable operation of light water reactors, we must ascertain the characteristics of aging
degradation following long-term use, such as irradiation embrittlement, Stress Corrosion
Cracking (SCC) and pipe wall thinning, and carry out appropriate maintenance andmanagement in these areas. We will conduct research to identify the mechanism ofirradiation embrittlement at high neutron fluences, with the aim of expanding theapplication of the prediction method that we developed. We will also promote research toclarify the mechanism of SCC propagation in components and piping, and the wall
thinning mechanism of steam-water two-phase flow piping, as well as continue to8

develop prediction methods and evaluate the seismic reliability of thinned piping.
Moreover, we will develop an advanced non-destructive inspection method for SCC anda method for diagnosing and assessing the deterioration of electric power cables causedby radiation and thermal stress in a nuclear power plant.

Operation and Maintenance of Electric Power Generating Facilities: We will establish
guidelines for a seismic performance verification to be used for the dam embankmentand spillway gate of gravity dams to make practical the seismic performance evaluations
for aged dams, since stable operation of hydroelectric power generation will continue tobe important. In addition, in order to develop a life assessments method for the weldedpart of high-chrome steel piping, which is essential for the appropriate operation andmaintenance of high efficiency coal-fired power plants, we will carry out long-termmaterial property evaluation tests of the circumferential welded pipe same as used in an
actual boiler and collect the material strength data.

Operation and Maintenance of Electric Power Transmission Facilities andSubstations: To establish proper operation methods of fast-increasing highly agedtransmission facilities and substations, as the first step we will compile and accumulate
data on the deterioration of highly aged 22kV-66kV class XLPE power cables. Moreover,
we will develop a method an on-site analysis method in order to apply the cleaning
technology to onsite processing of large transformers contaminated with low levels of
PCB.

(3)

Development of a supply/demand
next-generation electric power

infrastructurefor

We will actively pursue the development of prospective technology in order to strengthen the electric
power supply/demand infrastructure and develop energy-saving, low-carbonization technology,
which will enable greater efficiency of electric power supply and use and ensure energy security.
In particular, we will actively pursue the development of next-generation thermal power
generation technology, which is a more effective use of low-grade resources and can reduce theemission of greenhouse gases through more efficient power generation. Moreover, we will develop
next-generation power grid technology to facilitate the introduction of renewable energy such as
photovoltaic power generation to the electrical grid, as well as technologies that promote theefficient use of energy such as high-performance heat pumps and low-loss power semiconductor
devices.

9

Development of Next Generation Thermal Power Technology: We will develop
technology that will effectively use low-grade resources and reduce CO2 emissions
through greater efficiency of power generation using fossil fuels. In pulverized coal
power plant, we will propose operation guidelines for the use of subbituminous coal
blended with 50% or more bituminous coal. Moreover, we will examine the test data of
IGCC (Integrated coal Gasification Combined Cycle) demonstration plant to optimize
operations in IGCC and develop basic O 2-CO2 gasification technology for the IGCC
system with CO2 capture developed by CRIEPI. We will ascertain the basic carbonizing
properties of wood and waste biomass and improve the accuracy of modeling technology
for their carbonization characteristics, which is a key technology for more advanced useof low-grade resources.

Establishing Next-generation Power Grid Technology: The required regulating power
will increase in a power system with massive introduction of photovoltaics (PVs) andother renewable energy sources. Accordingly, we will propose a coordinated operation
methods of customer’s electrical appliances to relieve the burden on generation plants.
We will also provide a detailed design of the customer gateway that will centrally handle
the control information for PV and storage battery as well as the household energy use
information in order to develop practical communication infrastructure required for the
next-generation electricity grids.

Development of Electrification and Energy-saving Technologies: To promote energy
conservation through electrification, we will evaluate the energy-saving performance ofcommercial electric kitchens in order to support optimal design of electric kitchens, andascertain the performance of compact heat-pump water heaters (Eco Cute) in field tests.
In our efforts to develop low-loss power semiconductor devices, we will work ontechnology for SiC crystal growth with a higher growth rate and low defect density.
Moreover, in the development of all-solid-state lithium polymer secondary batteries forhome use, which are extremely safe, we will make prototypes of batteries and examine
technology to extend battery cycle life. In addition, to popularize electric vehicles, wewill develop techniques to assess the impact of electronic vehicles and technology to
improve their convenience.

10

2. Base Technology Subjects
Base Technology Subjects are those that we address for the primary objective of creating,
maintaining, expanding and sustaining the technology that serves as the important foundation forstrengthening research capability in each field. These include basic research, field studies, regularobservations and the creation of databases based on these findings, the development of analyticalmethods and algorithms, and the formulation and refinement of analytical models.
In fiscal 2011, we will designate 36 base technology subjects, while capitalizing on the strengths
and specialized skills of eight laboratories with specific research fields*. This system will enable us
to foster the base technology strengths that are the source of solutions to the issues faced by theelectric power industry and accurately and swiftly resolve the issues that emerged with theearthquake and the Fukushima Daiichi nuclear power plant accident.
CRIEPI research to support the recovery from the disaster of the Great East Japan Earthquake
particularly focuses on the following initiatives.












Proposals for the desired electric power industry regulation framework in Japan based on the
drastic socio-economic developments after the earthquake on March 11, 2011
Analysis and evaluations of energy demand based on the economic outlook, including possible
recovery and reconstruction scenarios
Development of technologies to maintain secure operation of a power system with massive
integration of distributed generation
Quantitative evaluation of effectiveness of measures countering risk of loss of offsite power,
based on a review of scenarios following a severe accident caused by external events in lightwater reactors
Stagnant contaminated water treatment at the Fukushima Daiichi power plant as an urgent issue,and evaluation of characteristics of fuel debris and development of processing technology for its
stabilization as long-term issues
Preparation of basic technology, such as the development of tools to evaluate severe accidents atlight water reactors
Development of an epicenter model to evaluate ground motions with a wide range of periods or
frequencies based on the characteristics of the epicenter off the Pacific Coast in the Tohoku
earthquake
Investigation and evaluation on seismic performance of a steel transmission tower, based on
analysis of the records obtained during the 2011 Tohoku earthquake*Socio-economic Research Center, System Engineering Research Laboratory, Nuclear Technology ResearchLaboratory, Civil Engineering Research Laboratory, Environmental Science Research Laboratory, Electric PowerEngineering Research Laboratory, Energy Engineering Research Laboratory and Material Science ResearchLaboratory.

11II. Research Promotion
We will pursue research by utilizing the expertise we have acquired over our history and bring ourresearch capabilities together to propose solutions to the issues that could emerge in the future andthe issues that require long-term efforts, as well as the urgent issues we face since the earthquake.
With the aim of further extending and advancing our basic research capability, we carry out
research in line with the approach of our new research pillars to maximize the academic, social andeconomic impact of our research results with a focus on the outcome on the electric power industry
and society. We also consistently follow PDCA in our research on these issues and meet the powerindustry and society’s expectations.
Our specific endeavors are described below.

(1) Promotion of research to support the recovery from the earthquake
disaster with all research centers, CRIEPI
It is crucial that research to support the recovery from the earthquake disaster, the most important
issue in the near term, is pursued effectively in line with the content and timeframe and that theresults are utilized to the maximum extent possible. To this end, we have assigned a Nuclear Power
coordinator and Disaster Support Research coordinator in the Planning Group which is located in thehead office, and pursue research in the fields of earthquake and tsunami countermeasures, nuclear
power and radiation safety, energy policy and business management environment under thesupervision with the Vice Presidents as a coordinators and cooperate with all research centers. In
particular, we will organically utilize the expertise that we have built up at the research centers topromptly address issues related to the Fukushima Daiichi nuclear power plant accident, and will
endeavor to generate highly effective results that can be applied on site. Moreover, we willproactively provide on-site support with radiation measurements and other efforts.

(2) Enhancing Research Capability and Exerting Comprehensive
Strength
The ability of researchers lies at the root of research capability, and CRIEPI’s maximum asset is theknowledge and technique of our individual researchers. This means that extending and enhancing
these research capabilities would further raise the potential of our research. Accordingly, we will
unceasingly engage in trial and expeditious research activities based on the researchers’ own
concepts.
Moreover, we will exercise our comprehensive strengths by promoting cross-cutting research by
12

coordinating with eight professional research institutes in our search for resolutions to theincreasingly complex and diverse issues we face. In particular, we will compile internal and external
knowledge for study and analysis and designate prospective research topics in order to strategicallypromote the kind of research that the earthquake requires us to undertake and the kind of researchthat can impact the electric power industry and society. Moreover, we will integrate and combine
CRIEPI’s internal research capability by rebuilding a research base in the future and establishing anenvironment that promotes research with organic cooperation between researchers andadministrative staff who support research. This will enable us to accurately meet the needs of theelectric power industry and society.
In addition, we will carry out research in cooperation with domestic and overseas university andresearch institutions with impressive knowledge in specific fields (Institute for Transuranium
Elements, Joint Research Centre, European Commission (ITU), National Center for AtmosphericResearch (NCAR), Japan Atomic Energy Agency, and Marine Ecology Research Institute, among
others). Such collaboration will enable scientific knowledge to mutually complement each other andmore efficiently generate more advanced research results.

(3) Promotion of Funded Research
Applying CRIEPI’s basic research capability, we will proactively engage in research that meets theneeds of the electric power industry, and will also receive government funding for research that will
help to clarify issues related to the electric power industry. As an objective testing center, we will
also facilitate the projects of the PD Center, which gives certification exams for experts of ultrasonicinspection working with nuclear power plant components, as well as the projects of the High Power
Testing Laboratory, which performs short-circuit tests on electric power equipment.

(4) Systematic Introduction and Upgrades of Large-scale Research
Facilities
We will systematically introduce large-scale research facilities to support the technologicalfoundation of the electric power industry in order to meet the pressing needs of the electric powerindustry and society and expand our research in new directions.
In fiscal 2011, we review of the priorities of our existing research plans carefully after theearthquake. We drastically revised our plan to introduce “the Experiments Facility of Reactor
Transient”, which was intended to lead to the more advanced utilization of light water reactors in the
future, and decided to cancel its introduction in fiscal 2011. However, we decided to introduce a“Shaking Table with Resonant Effect” to qualify the seismic performance of equipment crucial toearthquake resistance of a nuclear power generation station, as well as to augment “the Light Water
13

Reactor Materials Analysis Station” in order to further promote research on the stable operation oflight water reactors.
Moreover, we began constructing “the test facilities of insulation deterioration for aged XLPE
power cable system”, to be completed in fiscal 2012, and are also introducing the “Facility for
Experiments on Advanced Carbonization technology of Low-grade Resources” and the “Heat Pump
Development and Test Facility”.

(5) Management and Application of Intellectual Property
We will strategically secure intellectual property related to our research results and disseminate
information appropriately to ensure its broad use. Specifically, we will digitize and microfilm
research reports issued since CRIEPI’s founding (to be completed in fiscal 2011) and expand ourdownload services for disclosed materials. We will also strive to create high-value intellectual
property by reinforcing the Center for Intellectual Property & Technology Licensing’s function
supporting patent searches and raising the quality of patent applications by utilizing invention
consultation meetings. Moreover, we will make intellectual property more visible by evaluating
value of research results with a focus on outcome and publishing intellectual property reports.
We will not only promote the use of the intellectual property we have built up to promptly
resolve issues in the electric power industry, but will also strive to spread technology to people dothe actual working on the front lines of society through arrange for discussion to take place such astechnology exchange courses and technology lectures. Moreover, we will actively introduce patents
and software through seminars hosted by technology transfer organizations and CRIEPI and external
exhibits, and will encourage the transfer of technology to companies and others. Moreover, applying
features as an academic research institutes we will contribute to formulation of various rules,
standards, and technical guides related to energy and environment through joining to various
committees, such as national and academic committees and others. We have offered software held by
CRIEPI free of charge to institutions interested in using it in the recovery from the Great East Japan
Earthquake until the end of fiscal 2011.

(6) Steady Implementation of Basic Activities
We will steadily carry out the following basic activities to promote a wide range of research
activities and effectively disseminate information on research activities and results.

a. Collection of Literature, Materials and Statistics
We will secure and maintain a wide range of literature, materials and statistics and collecthigh-quality information by, for example, collecting information utilizing our position as an
14

academic research institute and augmenting the collections at CRIEPI’s various libraries. The
compiled information will be used in research activities, and also given back to society at large
through publications such as research reports.

b. Establishment and Utilization of Large-scale Computer System
We will examine detailed specification and select the precise model as we upgrade our large-scalecomputer system in fiscal 2012 to cope with the increasing sophistication and complexity of ourresearch. We will use this large-scale computer system for general purposes in research activities,
and it will help in generating superior research results. Moreover, we will actively obtain licenses forsoftware, such as the mathematical simulation program that we developed, for wide use by electric
power companies and manufacturers.

c. Issuance of Publications
We will gather research reports and public relations media in line with the progress made with our
research issues and disclose them to society at large via our website.

15

Administration
We will build a new framework for our research centers in order to respond to the expectations of theelectric power industry and society, as well as to continuously improve CRIEPI’s research capability,
in order to cut costs and improve efficiency in the changing business environment following theearthquake. To do so, we will rebuild our research bases over the next few years, primarily in the
Yokosuka Area, and will steadily address the reformation of public interest corporation system,
adjusting our organization’s management system as necessary. This will establish a foundation for
the future. We have outlined our plans in detail below.

(1) Further cost reductions and efficient utilization of assets based onchanges in income/expenditures
We will strive to cut costs further and implement our research activities more efficiently, given the
difficult financial environment resulting from changes in the electric power industry and society
since the earthquake. While ensuring the safety and quality of our research activities, we will review
our operations and change procedures. We will be particularly rigorous in our decisions on whether
or not to implement projects with large budgets and that are expected to be costly in future fiscal
years. We will continue to curb personnel expenses by making further cuts in executive officer
compensation and employee salaries as well as reviewing long-term measures, including theretirement benefit system.
In addition, we will attempt to sell assets that we do not expect to use in the future and part of theland acquired in the Komae Area, and use the money thus generated to rebuild research centers, suchas building in the Yokosuka Area, and expand new research. Moreover, we will strive to effectively
utilize existing research facilities as well as to dispose of unused facilities as we rigorously operate
and manage assets.

(2) Reconstruction of Research Bases for New Research Developments
We will flexibly rebuild our research bases in Yokosuka, Abiko and Komae as the situation demands,clarifying their role in future research development and laying out the concept behind the facility as
part of CRIEPI. Specifically, we will build the Center for Research on Energy Industry Technology
by consolidating the Nuclear Technology Research Laboratory and System Engineering ResearchLaboratory in Komae with the new research institute in Yokosuka, which has the Electric PowerEngineering Research Laboratory, Energy Engineering Research Laboratory and Material Science
Research Laboratory. This will strengthen our ability to resolve issues corresponding to the value
16

chain stretching from power generation, transmission and substation, distribution and sales in theelectric power industry. At the same time, the Abiko Area, where the Civil Engineering ResearchLaboratory and Environmental Science Research Laboratory are located, will further extend their
mission as the base for natural and environmental science research. This is intended to improve oursocial infrastructure management potential for natural disaster risk.
We will continue the work started in fiscal 2010 to develop infrastructure such as power sourcesin the Yokosuka Area, and will also start on development procedures to establish a research facilityon the newly acquired site. We will also prepare for the transfer by devising a transfer plan for large
research facilities from the Komae Area, such as the radiation safety facility, and a plan for theestablishment of research laboratories to promote research exchanges exceeding researchers’
individual fields.
Socio-economic Research Center, which was located in Komae, will be transferred to the
Otemachi Area in early fiscal 2011* with the aim of encouraging further collaboration with a wide
range of society, including the electric power industry, increasing opportunities for intellectual
exchange and promptly meeting diverse needs.
* Carried out in April 2011.

(3) Appropriate Response to Reformation of Public Interest
Corporation System
In order to transfer to the status of a non-profit general foundation in fiscal 2012, we will steadily
carry out the designated procedures, such as devising articles of incorporation (draft) and selecting
the first trustees for the period after the transition to our new status. We will also consider theestablishment of regulations on executives as necessary
In addition to the full-time supervisors already appointed, we will further expand our internal
control system by establishing a risk management and compliance system.

(4) Educating and Utilizing Personnel as the Key to Organization’s
Sustainable Development
We will establish measures that will enable researchers and administrative staff to perform their roles
to their maximum ability and to maintain and enhance individuals’ motivation and specialized skills
as we prepare for the future expansion of our research institutes. Specifically, by strengthening thepersonal support functions by which the head office’s human resource department directly draws
upon employees’ research interests and future goals and desires, the right employee can be assigned
17

to the right position, thus enabling each individual to maximize his/her own potential.
Moreover, in addition to the current methods of hiring researchers—full-time hiring, temporary
employees (visiting researchers), employees on loan, and temporary staffing—we are studying andconsidering the adoption of new methods to flexibly hire the staff needed to meet the increasingly
diverse research development going forward. This will also include a review of case studies indomestic and overseas research institutes.

(5) Promoting Public Relations Activities to Raise CRIEPI’s Value
We will continue to disseminate information such as our scientifically objective research results to awide range of stakeholders based on a clarification of CRIEPI’s position and point of view. At thesame time, we will actively seek stakeholders’ requests and views of CRIEPI and strive to reflect
them appropriately in business operations.
Specifically, we will make policy and technology proposals at the right time and opportunity, anddisseminate information on research results through various public relations media and our website.
At the same time, we will actively provide opportunities for the exchange of opinions with various
levels of the electric power industry, hold sessions to exchange views with the mass media and wewill use these opportunities as a way to hear the views of our stakeholders.

18Workforce
Although we anticipate an increase in the workforce in fiscal 2011 as a result of a rise in the numberof visiting researchers and employees on loan corresponding to the expansion of CRIEPI’s research,
as well as an increase in the number of reemployed employees through the part-time reemployment
system, employment will reach an equilibrium point of about 800 in the medium to long term as amatter of basic policy. Accordingly, we will not only further enhance the skills of our current
workforce, but also continue to streamline office work.
The workforce in fiscal 2011 is as follows.
(As of April 1, 2011)
Item
1. Research

Number (people)
744

Percentage distribution (%)
88.0

Including 38 Visiting Researchers[Breakdown](1) Electricity(100.0)
122

16.4

91

12.2

(3) Mechanical

100

13.4

(4) Chemistry

74

10.0

(5) Biology

63

8.5

(6) Nuclear Engineering

47

6.3

(7) Environmental Science

47

6.3

41

5.5

46

6.2

113

15.2

101

12.0

845

100

(2) Civil Engineering andConstruction(8) Information andCommunication(9) Socio-economics(10) Research Support andManagement
2.

Office work

Total

19

20

Statement of Budget

21

Budget Change
In light of the impact of the Great East Japan Earthquake we have revised our fiscal 2011 income
and expenditure budget by reviewing benefit income and reexamining expenditures. As a result of
these revisions, our budget has been reduced by 1.64 billion yen compared to the initial budget to32.27 billion yen. The main changes are outlined below.

1. Revenue and expenditure in business activity(1) Current benefit income declined 1.53 billion yen compared to the initial budget to 27.27 billion yen.
・Benefit income from Tokyo Electric Power Company and Tohoku Electric Power Company,
which were affected by the earthquake, decreased 1.48 billion yen.
(2)Business income decreased 130 million yen compared to the initial budget to 2.39 billion yen.
・Other business income decreased 130 million yen compared to the initial budget to 590 million
yen due to payment of share of cost of joint research and others.
(3) Business activity expenditures decreased 660 million yen compared to the initial budget to 25.35
billion yen.
・As a result of revisions to research activity expenditures to respond to the decline in revenue dueto the earthquake, business expenditures decreased 660 million yen compared to the initialbudget to 23.59 billion yen.

2. Revenue and expenditure in investing activity(1) Investing activity income decreased 1.33 billion yen compared to the initial budget to 810 million yen.
・Special asset virement income decreased 500 million yen compared to the initial budget to 700
million yen due to the postponement of the liquidation of reserves as a result of a delay in the
introduction of the Facility for Experiments on Advanced Carbonizing Gasification of
Low-grade Resources as a result of the earthquake’s impact.
・Fixed asset acquiring expenditure decreased 830 million yen compared to the initial budget
because the sale of public welfare assets was put off due to the stagnant real estate market.
(2) Investing activity expenditures decreased 980 million yen compared to the initial budget to 6.92
billion yen.
・Special asset acquiring expenditures increased 700 million yen compared to the initial budget to
2.8 billion yen in order to set aside reserves for the early introduction of the Next-Generation

22

Fuel Advanced Combustion Test Facility, which will help to reinforce the stable supply of power,
and upgrades to the Electric Power System Simulator.
・Fixed asset acquiring expenditure decreased 1.68 billion yen compared to the initial budget to
4.12 billion yen as a result of the decision to cancel the introduction of the Reactor Thermal
Hydraulics Transient Test Facility after revisions to our nuclear power research plans following
the earthquake.

3. Difference between revenue and expenditure in the previous balance
brought forward
As a result of the delay in the introduction of facilities due to the earthquake, the difference
between revenues and expenditures in the previous balance brought forward increased 1.35
billion yen compared to the initial budget to 1.69 billion yen.

23

The revised budget for fiscal 2011 based on the above changes is as follows.
Fiscal 2011 Revised Budget for Revenues and Expenditures
From April 1, 2011 through March 31, 2012
(Unit: Million yen)

I. Revenue and expenditure in business activity
1. Business activity income(1)Base property operation income(2)Benefit income
Current benefit income(3)Business income
Funded research business income
Other business income(4)Other income
Business activity income total
2.Business activity expenditure(1)Business expenditure
Personnel expenditure
Payment of expense(2)Management charge expenditure
Personnel expenditure
Payment of expense
Business activity expenditure total
Difference between revenue andexpenditure in business activity
II. Revenue and expenditure in investing activity
1. Investing activity income(1) Special asset virement income
Special asset virement income toacquire research facilities(2)Fixed asset acquiring expenditure(3)Long-term advance payment diversion expenditure
Investment activity income total
2. Investing activity expenditure,
Investing activity expenditure total(1)Special asset acquiring expenditureSpecial asset acquiring expenditure
to acquire research facilities(2)Fixed asset acquiring expenditure
Investment activity total
Difference between revenue andExpenditure in investing activity
III. Revenue and expenditure in financial activity
1. Financial activity income
2. Financial activity expenditure
Difference between revenue andExpenditure in financial activity
Difference between revenue andExpenditure in the current period
Difference between revenue andExpenditure in the previous balance brought
forwardDifference between revenue andExpenditure of balance carried forward

Note:

Revised Budget Initial budget

Up and down
Remarks(△down)---27,2702,390(1,800)(590)
110
29,77028,8002,520(1,800)(720)
110
31,430△1,530△130( - )(△130)-△1,66023,590(10,020)(13,570)
1,760
(980)
(780)
25,35024,250(10,020)(14,230)
1,760
(980)
(780)
26,0105,420△1,000

700

1,200

△500

4,420

-

△660
( - )
(△660)

-

( - )
( - )
△660

830
110
2,140

△1,330

2,800
4,120
6,920

2,100

△6,110

5,800
7,900

700

△5,760△1,680
△980

-

-

-

△1,690△340△1,350

-

-

-

110
810

1,690

340

△830

-

△350

1,350

1. The borrowing limit was 3,000million yen.
2. Liabilities will amount to 5,200 million yen in fiscal 2012 and 800 million yen in fiscal 2013.

24

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