Research Plans&
Statement of Budget

FY 2014

March 2014

Central Research Institute of Electric Power Industry

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On Preparation of FY2014 Research Plans and Statement of Budget

Overview of FY2014 Business Activities

Research Plans

Research Activities

I.

Research Plans

II.

Research Promotion

Administration

WorkforceStatement of Budget
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Budget Compilation

BudgetOn Preparation of FY2014 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,electricity system reforms and basic energy plans are being revised on the backdrop ofcontinuing demands for stable and affordable supply of electricity, while there is an urgent
need to address aging electricity infrastructure and widen the introduction of renewableenergy.
Given these situations in the electric power industry, CRIEPI will focus its activities on
the following priority areas in fiscal 2014.
Pursue mission as joint research institution for electric power industry

Given the severe budget restrictions resulting from provisional reductions in benefit
income, continuing from fiscal 2013, we will thoroughly streamline various operations
and cut costs, and also focus our management resources on projects with the greatest
priority based on the needs of the electric utility industry.

In pursuing our research, we will utilize our “Pool of knowledge,” which consists of thehuman resources, know-how, research facilities and external human networks thatCRIEPI has built up thus far, and generate high-quality research results in a timely andunerring manner. This will enable us to provide solutions to the urgent issues andimportant medium- and long-term problems facing the electric power industry.



We will strive to further strengthen communication with the electric power industry, andaugment our “Portfolio of Research Subjects” with appeal to the industry so that we cancontribute to the resolution of issues with foresight, insight and ability to examine
problems.

Establish business foundation and research strategies for the futureIn order to fulfill our responsibilities as an industry research institute that supports theelectric power industry with our technical skills and problem-solving skills into the future,
we will train and hire the human resources so essential to maintaining and developing
research capacity, and build and update research facilities. We will also establish theresearch bases that are at the foundation of these endeavors.

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

Keeping in mind that the changes in social situations, such as reforms to the electricity
system, will have a different impact on each sector of the electric power industry, we will
identify the technology that is indispensable to the stable supply of electric power in the
future and the diverse options that will help us prepare for the heightened risks impeding
this supply, and develop a research strategy that clarifies the role CRIEPI should play inthis process.
As such, we will support the technological foundation of the electric power industry andcontribute to the resolution of their issues in our role as an in-house research institute withresearch facilities and highly skilled researchers with wide-ranging specialties.

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Overview of FY2014 Business Activities

Research Activities
Research Plans
CRIEPI has prepared “Primary Issues Facing the Electric Power Industry,” whichsurveys the electric power industry and identifies the issues that should be resolved, and the“Portfolio of Research Subjects,” which outlines the actions that CRIEPI should take toresolve these issues. Based on this, we have devised our research plan.
Specifically, we will clarify the respective priorities of each action outlined in the
Portfolio of Research Subjects from the perspective of the electric power industry’s needs andthe role that we should play as a joint research institute, and prioritize the following actions
that will contribute to the resolution of the urgent issues facing the electric power industry.
Respond to the various issues confronting nuclear power generation, including thesimultaneous rupture assessment that is part of the screening to determine nuclear power
plants’ compliance with new regulatory standards, analyze issues resulting from future
regulatory and institutional changes and provide support in responding to them, andassess and improve safety in the face of natural external events

Support in expanding effective use of coal ash and broadening fuel species, which
contribute to the inexpensive and stable operation of coal-fired power generation

Measures addressing aging of electric power distribution facilities and measurescountering the risk of natural disasters, as well as system stabilization responding toincreased adoption of renewable energy
In addition, we will take a path-breaking approach to the future possibilities of theelectric power industry, and reinforce our initiatives to activation on the demand side.
At the same time, we will slow down or postpone research into areas that are not highpriorities in terms of their urgency, while still maintaining our underlying research capacity.
These include technology development aimed at developing nuclear power reactors that canrun for more than 60 years, the development of evaluation technology for the application of-3-

non-conventional liquid fuel to thermal power plants, and the development of component
technologies

fornext-generationelectric

power

distribution

facilities,

such

as

All-solid-insulated transformers, superconducting electric power apparatus and SiC
semiconductors for power electronics.
In establishing and pursuing research plans, CRIEPI will conduct research on subjects
consisting of priority subjects, priority subjects with limited terms and basic technology
subjects under the three “Research pillars,” described below, which govern our medium-term
research directives, and will endeavor to generate timely and effective results.
(1) Establishment of Optimal Risk Management
We will carry out initiatives on “Nuclear Power Plant Safety,” “Radiation Risks,”“Nuclear Fuel Cycle and Backend Technologies,” and “Natural Disaster Reduction on
Transmission and Distribution Facilities.” We will also evaluate and analyze “Energy andEnvironment Institutions.” These initiatives will help to reduce the risks involved with thestable supply of electricity and facilitate risk management.
(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 and Maintenanceof Transmission and Distribution Facilities,” and will contribute to the development of moreadvanced operations and maintenance technology related to the stable supply of electric
power.
(3) Development of a Supply/Demand Infrastructure for Next-generation Electric PowerWe will focus on “Next-generation Thermal Power Technologies,” “Next-generation
Power Grid Technologies,” and “Energy Utilization Technology,” and will make contributions
to further enhance the efficiency of electricity supply and electricity use, ensure energy
security, and realize energy conservation and low carbonization.

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Research Promotion
In pursuing our research, we will focus our efforts as follows.
Further augment an appealing “Portfolio of Research Subjects,” which includes researchon issues that the electric power industry will likely face in the future, based on mutual
understanding with the industryStrengthen the research structure so that we can constantly produce high-quality results
while still keeping research costs down

Maintain and strengthen research capacity and ability to resolve issues by carefully
selecting and steadily introducing and updating large-scale research facilities, which areessential to resolving the electric power industry’s issues, and building human networks
with domestic and international research institutes

Administration and Workforce
In light of the difficult budget conditions, we will reexamine the need for all operations
and continue to cut costs across all operations, including personnel costs. At the same time,
we will steadily establish the research bases that are essential to maintaining and enhancing
our future research capacity by selling asset holdings and replacing them with profitableassets.
Moreover, we will focus on encouraging employees to exercise their skills and on hiringand retaining diverse personnel in accordance with business development, and will
disseminate research results and research capacity effectively to the electric power industry
and the public as we strive to pursue operations in a sound and strict manner.
Income and Expenditure Budget
Business activity income is expected to amount to 26.24 billion yen, the total of 23.56
billion yen in donation income, which accounts for most of CRIEPI’s revenue and was
reduced as in fiscal 2013 due to temporary measures, and business income and other income.
Business activity expenditures will total 29.7 billion yen, the total of 27.88 billion yen inbusiness expenditures and 1.81 billion yen in management expenditures. This is a 3.45 billion
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-5-expect general net assets to decline 3.69 billion yen.
Designated net assets, whose use is restricted, are expected to decline by 190 million
yen as a result of 50 million yen in subsidies and a 240 million yen transfer to general net
assets.
As a result, net assets are expected to fall 3.88 billion yen in the current fiscal period(the total of fluctuations in general net assets and designated net assets), which will result in a
37.36 billion yen balance of net assets at the end of the fiscal year.

-6-Research Plans

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 in addressing,maintaining and continuing, and expanding. We pursue research on these 35 priority subjects.
Those priority subjects into which CRIEPI’s comprehensive resources should be invested fora quick resolution are designated “priority subjects with limited terms” (10 subjects).
CRIEPI’s fiscal 2014 plan newly designates the three subjects of “Institutional
Environments surrounding Nuclear Industry,” “Development of Technologies for Increasing
the Use of Coal Ash” and “Development of Accurate Power Output Estimation and Forecast
Techniques of Photovoltaic Power Generation” in order to reinforce research contributing to
the resolution of urgent issues facing the electric power industry. We completed research on“Evaluation of the Feasibility of Demand Response Suitable for Japan” and “Next-Generation
Communications Network Systems” in fiscal 2013 with the achievement of the objectives forthe period. In fiscal 2014, we will address “Assessment of the Value of Next-generation
Demand Management” and “Demonstration and Common Specification of Next-generation
Communications Network Systems.”
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 this process, “Nuclear Power Plant Safety” and “Nuclear Power Plant
Maintenance” have been identified as the most prioritized subjects, and the special researchteams are established in fiscal 2012. The teams will marshal the expertise across several
specialized fields in an integrated manner to enhance research activities.
Below we outline the main research plans for priority subjects and priority subjects withlimited terms for each subject group.

-7-(1) Establishment of Optimal Risk Management
With the aim of reducing risks and management associated with the stable supply ofelectricity, CRIEPI evaluates the impact that social and economic changes and natural
phenomena have on the electric power industry, and addresses subjects that offer solutions,
including social systems and frameworks.
Specifically, we address subjects related to enhancing the safety of light water reactors
and identifying radiation risks, and will continue to focus 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 disaster countermeasures at electric powertransmission and distribution facilities and research on ways of supporting radioactive waste
disposal operations. CRIEPI engages in research related to the evaluation and proposal ofenergy and environmental policies that can achieve social consensus from a scientific andobjective perspective.
Nuclear Power Plant Safety
 Evaluation of LWR System Safety: CRIEPI performs severe accident (SA) analyses
for representative plants and evaluates the effectiveness of measures quantitatively
taken to address these SAs. Based on these results, we support decision making todeploy safety measures at nuclear power plants. We have also introduced a test
facility for fuel coolability in light water reactors (LWRs) to visualize coolant flowin the complex fuel bundle geometry. We also work to improve the accuracy ofsafety evaluation codes.
 Assessment of Natural Hazards to Nuclear Facilities: CRIEPI is working toestablish a method for assessing hazards related to the scale of natural external
phenomenon and the frequency of occurrence, which is essential in assessing thesafety of nuclear power reactors. To this end, we develop scale assessment models
for interrelated earthquakes, a method for assessing the scale of tsunami throughtsunami deposits, and a method for predicting ash fall taking into account the scaleof the volcanic product and weather conditions.
 Fragility Assessment of Nuclear Facilities against External Natural Phenomena:
Through large-scale hydraulic tests utilizing a tsunami and flood channel
introduced in fiscal 2013, we will scientifically examine methods of evaluating-8-

tsunami hydrodynamic force and driftage collision force. We will also develop a
probabilistic risk evaluation method that takes this impact into account. In addition,
we will develop a new geotechnical analysis method in order to assess the stabilityof the foundation and surrounding slopes when an earthquake occurs based on
actual conditions. We will use the expanded centrifugal vibrating table to test its
effectiveness. Moreover, we will continue vibration experiments on importantequipment using the resonant oscillation table to verify the acceleration at which
equipment function can be maintained.
 Development of Environmental Diffusion Evaluation Methods and Long-term
Behavior of Radioactive Materials: We will refine the model to assess theatmospheric diffusion of radioactive substances used to assess the safety of nuclear
power facilities, thus enabling the evaluation of atmospheric diffusion and thedeposition of radioactive substances.
 Establishment of Methodologies to Evaluate Fires in Nuclear Facilities: In order toestablish fire defense systems at nuclear power facilities, in addition to theexperiments using high-voltage power panels implemented in fiscal 2013, we will
carry out arc fire experiments on low-voltage power panels. Based on these results,
we will present rational arc fire countermeasures.
Radiation Risks
 Quantitative Evaluation of Low-dose Radiation Risk and Reflection to Radiation
Protection Systems: We will establish biological mechanistic models for radiation
carcinogenesis in terms of the accumulation of radiation effects that can explain thedose rate effects (even with the same exposed dose, the impact differs depending on
the dose per unit time, i.e., the dose rate) shown in epidemiological studies ofresidents in areas with high natural background radiation in China and India. We
will accumulate experimental data to prove their validity.
Nuclear Fuel Cycle and Backend Technologies
 Systematization of Long-term Safety Evaluation for Radioactive Waste Disposal:
We are working on expanding applications of a quality evaluation method for
cement-type engineered barriers developed for subsurface disposal to thenear-surface concrete pit disposal, which is slated to undergo a safety review. In
addition, we will develop a method to measure the montmorillonite content, which-9-has low permeability, contained in the materials of clay-type engineered barriers inorder to evaluate quality of this barrier accurately.
 Development of Long-term Storage/ Management Technologies for Spent Fuel:With the aim of establishing a technology to monitor the soundness of dry storage
canisters for spent nuclear fuel, we will build a measurement system in which asensor is inserted within a concrete cask, and will be raising the applicability of amethod that uses lasers to measure the salt concentration on the canister surface,which causes stress corrosion cracking (SCC), on the front lines.
Natural Disaster Reduction on Transmission and Distribution Facilities
 Development of Prediction Methods of Weather/Climate Affection to Electric Power
Facilities: We are raising the accuracy of a method to determine regions with similar
tornado frequency and a model to evaluate the speed of tornado missiles with theaim of developing a safety assessment for nuclear power plants. We are also refining
the tornado impact assessment methods currently available. In addition, we are
examining the application of a system currently in development that predicts
short-term rainfall to cases of torrential rainfall in order to operate and managehydropower dams through rainfall and flood projections. We will work to improve
the accuracy of the projections.
 Demonstration of Preventive and Mitigating Measures against Snowstorm Damage
to Transmission and Distribution Facilities: We will compile data from the operationof the nationwide local snow damage measurement systems, including the full-scale
test facilities for snow-storm damage to overhead transmission lines, set up in fiscal
2013 in the Kushiro area. We will clarify the meteorological conditions that result insnow damage, such as heavy snow accretion and galloping, and develop a method
for identifying regions that incur snow damage.
 Risk Management against Lightning: In order to increase the accuracy of lightning
risk assessment methods, we will continue to collect lightning observation data,such as stroke currents and resulting electromagnetic fields within structures, aswell as leader development characteristics, on lightning hitting tall structure, andwill refine lightning parameters. In addition, we will develop an analytical model toquantitatively assess important induced surges in the established rational lightning
protection designs. taking into account the electromagnetic immunity level of- 10 -

control lines at substations and other facilities.
Energy and Environment Institutions
 Well-functioning Electricity Market and Neutralization of Network: We will
analyze the impact of the legal separation of electric power transmission fromgeneration and supply, and identify the risks involved in this unbundling. We will
clarify the risks of market monitoring and asymmetric regulation and the role thatnew regulatory system would have, and propose an approach to electric powersystem reform that is desirable for society.
 Institutional Environments surrounding Nuclear Industry: We will analyze thenuclear power regulatory system and enforcement of regulations in terms ofwhether engineering and scientific knowledge is appropriately reflected, andpropose remedial measures. We will analyze the business risks of nuclear industry
resulting from regulatory system and policy changes. For example, with the reforms
to the nuclear third party liability system, we will propose a mechanism to balance
operators’ predictability with compensation for victims, and support the nuclear
industry in addressing these system reforms.
 Climate Change Policy: We will propose a package of measures for Japan’s
greenhouse gas countermeasure system consisting of energy-conserving measureswith high cost-benefit effectiveness, renewable energy measures, technology
development measures and carbon price measures that are mutually consistent.
 Scientifically and Economically Rational Scenarios to Reduce CO2 Emissions:
Based on knowledge in the IPCC’s Fifth Assessment Report (AR5), we will update
the evaluation methods for climate scenarios that have already been developed, andpropose a long-term scenario for realistic CO2 emission reductions and energy use
technology.

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(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 theeffectiveness and economic value of power generating facilities and electric distribution
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 maintenance of thermal andhydro power generating facilities and electric power transmission and distribution facilities.
Nuclear Power Plant Maintenance Structural Integrity Evaluation of Reactor Pressure Vessels and Core Internals: We
will establish a method for assessing fracture toughness using miniature specimensthat can be taken from used surveillance test specimens, with the aim of effectively
using surveillance test specimens based on the Master Curve approach. Thismethod can directly measure the fracture toughness of reactor pressure vessel
steels.
 Integrity Evaluation of LWR Components and Piping: We have developed software
to predict pipe wall thinning caused by flow accelerated corrosion (FAC) or liquid
droplet impingement erosion (LDI) based on their mechanism. We will validate thesoftware, FAC and LDI Prediction Software for Pipe Wall Thinning (FALSET),
using plant data to apply it to the pipe wall thinning management.
 Integrity Evaluation of Cable Insulation used in Nuclear Power Plants: Based on
the results of accelerated aging tests (irradiation tests) by controlling the additives
in the cable insulating materials and the environments, we will elucidate the cabledegradation mechanism with a focus on antioxidant behavior and develop adegradation prediction method. We will validate the degradation prediction method
to apply it to actual instrumentation cables.
 Development of Nondestructive Inspection Techniques for LWR Components andPiping: To establish a dissimilar metal welds performance demonstration (PD)system, we will develop manufacturing methods for the PD test specimens
containing simulated stress corrosion cracking (SCC) in the welded joints. Using- 12 -

phased array ultrasonic testing methods, we will develop more accurate methods tomeasure SCC depth in the dissimilar metal welded joints.
Construction, Operation and Maintenance of Power Generation Facilities
 Development of Life Assessment Technology for High Temperature Structural
Components of High Chromium Steels: We will carry out bending-internal pressure
creep tests of 9 chromium steel welded pipe test specimens with the aim ofdeveloping facility diagnostic technology for high-temperature equipment made ofhigh-chromium steel at thermal power plants. We will clarify the corrosion form
based on non-destructive inspection, structure observation and numerical analysis
results. We will also develop a method for assessing the impact that repair welding
techniques have on the creep life of 9-chromium steel welded parts.
 Development of Comprehensive Atmospheric Assessment Method for Thermal
Power Plants: We will add compatibility with coal-fired thermal power (SOx,particulate matter) and meteorological data analysis functions to the support tool foratmospheric environmental assessment for use with existing thermal power
generation, and enhance its applicability on the frontlines. In addition, we willdevelop a tool for generation source analysis, such as photochemical oxidants andfine particulate matter (PM2.5), in order to assess the impact of secondary air
pollution on thermal power generators.
 Development of Technologies for Increasing the Use of Coal Ash: We will develop
a fast quantification method for SiO2 in fly ash and a fast method to assess the
pozzolanic activity of fly ash for use in concrete. We will also develop a fast andsimple quantification method for trace substances in coal ash and an environment
safety evaluation method looking at the transfer of trace substances from products
using coal ash to the soil with the aim of expanding the use of coal ash in the public
works sector.
 Development of Technologies of Environmental Impact Assessment for
Biodiversity Conservation: We will undertake local studies to closely examine ourdeveloped method for estimating the habitats of rare species (important species)
with the aim of developing an impact assessment method for important species inenvironmental impact assessments at the planning stage. Moreover, we will develop
3D software for bird flight trajectories, and propose a survey method compliant- 13 -

with environmental assessments for wind power generation and an impact
assessment method to evaluate bird collision risk.
 Synthesis System of Numerical Analysis for Current and Sediments in Rivers andReservoirs: We will develop an integrated system for flood and sediment behavior
projection that adds functions to analyze and predict watershed sedimentation andwater quality conditions to the existing system predicting rainfall intensity anddischarge, with the aim of encouraging the rational dam operations by predicting
the behavior of sediment in rivers and reservoirs.
Operation and Maintenance of Transmission and Distribution Facilities
 Maintenance and Management Technologies of Aged Transmission andDistribution Facilities: We will continue to reinforce the degradation database byaccumulating data on degradation characteristics, remaining life and abnormal
diagnoses for underground cables and power transformers. In addition to improving
this database, we will add more information, such as facility operations,maintenance and inspections, and facility dependability in the event of natural
disasters, and will develop a tool for assessing the dependability of equipment.
 Development of Soundness Assessment Technologies of Aged Transmission
Towers: We will develop an inspection system to detect corrosion and degradation
inside the steel pipes of overhead transmission towers, and build a framework forthe soundness of aged towers. In addition, we will clarify the seismic performanceof overhead transmission towers against high-level earthquake motions until the lossof transmission functionality in order to assess earthquake safety.

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(3) Development of a Supply/Demand Infrastructure for Next-generation Electric PowerTo prepare for, minimize and overcome future risks, we develop next-generation
technical foundation that will enable greater efficiency and energy security in terms of both
energy supply and energy use, and will address issues facing energy conservation andlow-carbon systems.
Specifically, we will proactively develop technology for the effective use of low-grade
resources in thermal power generation. In addition, we will develop technology such as
next-generation grids enabling the smooth introduction of solar power and other sources ofrenewable energy into the power system, as well as technology that promotes the efficient useof energy, such as heat pumps.
Next-generation Thermal Power Technologies
 Improvement of Operation and Control Technologies to Diversify Fuel Types for
Pulverized Coal Fired Power Plant: In order to encourage the use of bituminous
coal, which is hard to grind at existing thermal power plants, we will clarify theappropriate conditions for its use, such as blending coal conditions, pulverization
conditions and combustion conditions, through combustion tests using the coal
combustion testing facility installed in fiscal 2013. In addition, we will clarify the
corrosion resistance effect of a sulfidation corrosion resistant coating (alreadydeveloped) to grooving corrosion through on-site testing in order to lower
maintenance costs.
 Advancement of Utilization Technologies for Low Rank Energy Resources: With
the aim of expanding the utilization of biomass co-firing in the existing coal-fired
power plants, a biomass carbonization test facility was installed in fiscal 2013. The
carbonization conditions of biomass suitable for high co-firing rate use in thecoal-fired power plants have been defined by the carbonization test results ofbiomass with this test facility.
Next-generation Power Grid Technologies
 Power System Security Assessment with High Penetration of Photovoltaics: We
will clarify the influence of high penetration of PVs on the dynamic stability of
networks during system failures through tests using power system simulators andcarrying out a CPAT simulation incorporating a power condition system (PCS)- 15 -

model for use with PVs (already developed).
 Development of Accurate Power Output Estimation and Forecast Techniques of
Photovoltaic Power Generation: For practical utilization in the demand and supply
operation of the utilities, a real-time power estimation method in grid-connected
photovoltaic systems will be improved, supplementing solar radiation network datawith additional data, such as satellite images. In the prediction of solar irradiancefor the next several days, we will improve our prediction method for obtaining
more accurate results in the case of a sudden change in weather and evaluate thereliability of the predicted results using a statistical method.
 Development of Next Generation Distribution Network Techniques: We will use
simulation analysis and experiments to clarify the impact that the reverse power
flow from distribution system to the secondary system will have on voltage
variations, following deregulation. We will also add evaluation functions, such as
the judgment of the need for reverse flow countermeasures and calculation of PV
interconnection capacity, to existing comprehensive analysis tools for power
distribution systems and work to improve its applicability on the frontlines.
 Demonstration and Common Specification of Next-generation Communications
Network Systems: We will put together specifications and evaluation methods fordemonstration devices as preparation for field tests of the wide-area power systemmonitoring, protection and control networks used in multi-purpose and standard
technology. We will also identify issues for security measures.
 Assessment of the Value of Next-generation Demand Management: We will clarify
the issues in the event that demand response (DR) is used as a means of curbing thevoltage spikes which can occur with the introduction of large volumes of PV. We
will also study trends of ancillary-type DR (supporting frequency adjustment andreserve power supply) in the US, and outline the issues and assess its feasibility
when implemented in Japan.
Energy Utilization Technologies
 Development and Evaluation of Advanced Heat Pumps: We will evaluate the steam
generation capacity and COP (energy consumption efficiency) of an industrial-use
steam-generating heat pump developed by power companies using the test facility
for development and evaluation of heat pumps installed in fiscal 2013. We will also

- 16 -

jointly develop an industrial-use CO2 refrigerant heat pump hot air dryer with amanufacturer.
 Establishment of Evaluation Technologies for High Performance Secondary
Batteries: We will confirm the validity of our nondestructive evaluation techniqueof the degradation of lithium-ion batteries from the measurements of the slightchange in the trend of voltage and/or temperature by comparing the more direct anddestructive analysis of materials used in the batteries, which will contribute to an
accurate prediction of the remaining life time. We will also introduce the Basic
Equipment for Battery Performance Test and Material Investigation to aggressively
advance our research on the internal materials of large-scale lithium-ion batteries.
2. Basic technology subjects
Basic technology subjects are those that we address with the aim of identifying andresolving issues faced by the electric power industry and maintaining and strengthening ourbasic research skills that are the source of our problem-solving, using our “Pool of knowledge”
made up of knowledge useful on the frontlines, personnel with advanced 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 ground-breaking research that anticipate theneeds of the electric power industry and society, and foster 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 our basic technology.
We will designate 35 basic technology subjects in fiscal 2014 to capitalize on thestrengths and specialized skills of eight laboratories with specific research fields*.

- 17 -Examples of projects on basic technology subjects
Nuclear power generation
 In order to provide the technical basis for nuclear reactor decommissioning, we will
evaluate the characteristics of simulated fuel debris manufactured by melting
uranium dioxide, and develop a material accounting technology for fuel debris byapplying burnup measurement technology for spent nuclear fuel.
 We will devise a conceptual design for an iodine removal system suited for
conditions characterized by fast-moving steam, which is anticipated under severe
conditions, to raise the performance of actual filter vents, and will begin component
tests.
 We will confirm and examine whether the variation in physical properties of fault
material associated with faulting, observed in friction experiments, occurs in actual
active faults to establish activity evaluation methods for faults in bedrock.
 We will develop highly accurate dating methods using trace substances for volcanic
ash dating back several tens of thousands of years and even several hundred
thousand years, and will evaluate eruption histories and fault activities.
 In order to clarify the cause of strong ground motion in a near-source region and toevaluate a seismic-motion level for an unexpected source, we will confirm ourestimated basement-motion at Rumoi by using borehole-array observation. We will
also carry out basement-motion estimation at other stations and develop an
evaluation method for near-source ground motion.
 We will enhance the content of the domestic Probabilistic Risk Assessment (PRA)
database for the Japanese light water nuclear reactors. We will also establish
equipment and system reliability evaluation methods for PRA, and consider
frameworks for reliability data collection at power plants.
Thermal power generation
 We will establish non-destructive testing techniques for various kinds of damage
and degradation to thermal barrier coatings, and develop a method for estimating
temperature distribution in gas turbine rotating blades in the startup/shutdown
process
 We will carry out microstructure observation and creep tests on welded portions of- 18 -

high chromium ferric steel elbow pipe which was used for more than 100,000 hours
in a commercial thermal power plant, and evaluate the cause of creep strength
reduction in long time periods.
 We will conduct experiments using a natural seawater flow system simulating
cooling water systems at power plants to establish the optimal countermeasures
such as chlorine injection techniques to prevent marine fouling organisms.
 We will examine the practical performance of the bioreactor and the automatedmonitor for controlling selenium in wastewater through demonstration tests at
power plants, with the aim of developing efficient wastewater management
technology for coal-fired thermal power plants.
Power distribution
 We will clarify the superiority of CRIEPI’s Power System Analysis Tool (CPAT) on
the assumption that organizations promoting wide-area power administration will
utilize it in system operations and planning, and work to make this the standard toolin Japan.
 We will carry out demonstration tests through direct current (DC) powertransmission lines on their actual scale at the Shiobara Testing Yard and attempt to
expand applications of electrical environment prediction methods for DC overhead
power transmission lines as part of efforts to strengthen wide-area interconnection
for electrical power systems.
 We will enhance our seismic-response analysis tools for electric-substationequipment based on shake table experiments and their simulations. We will alsoestablish new seismic-resistant design techniques for the equipment and work toreflect those in the design standards.
Sales
 In addition to developing a demand simulator capable of imitating energy demandat the community level, we will calculate the energy conservation margin taking
into account residence comfort, and build a database that can be used for energy
conservation consulting in the sales department.
 We will examine the current status and issues of asymmetric regulations forexisting power companies’ electricity rates, based on case studies on electricity
markets in the US and Europe. We will also conduct a questionnaire of end-users in- 19 -

industrial and commercial sectors to assess the merits and demerits of deregulation,such as changes in electricity rates and services.

*Eight research institutes by specialty: Socio-economic Research Center, System Engineering ResearchLaboratory, Nuclear Technology Research Laboratory, Civil Engineering Research Laboratory, Environmental
Science Research Laboratory, Electric Power Engineering Research Laboratory, Energy Engineering ResearchLaboratory and Materials Science Research Laboratory- 20 -

II. Research Promotion
1. Strengthen multi-layered communication with electric power companies

We will go further in our brush-up of research plans, which we done on an ongoing basis
since fiscal 2012. We will also work to further augment our “Portfolio of Research
Subjects” that will appeal to the electric power industry in order to contribute to theresolution of issues with our foresight, insight and ability to closely examine issues.



We will participate in various research committees held by CRIEPI, gatherings for an
exchange of opinions, and research societies to strengthen communication with electric
power companies and thoroughly ascertain information and options at various levels.
This will enable us to accurately reflect front-line needs in the “Portfolio of Research
Subjects” and our research plans in a timely manner.



We will clarify our role and research strategies in each research field, keeping in mind
that reforms on the electric power system will have a different impact on each division in
an electric power company.

2. Further strengthen research structureOn the assumption that budget constraints will continue, we will rigorously examine
research subjects and the number of experiments and continue to cut operating costs inorder to generate high-quality results.

When introducing research equipment, we will examine specifications to ensure that
there are no excesses or deficiencies in light of the research plan, and will also cut costs
through the efficient use of existing facilities and competitive bidding.

In order to quantitatively lay out the value of CRIEPI’s research, we will continue to
implement research value assessments to calculate the estimated economic value of theresearch. Moreover, we will have external experts conduct research assessments andwork to raise the quality of research results.

- 21 -

3. Maintaining and enhancing research capacity and problem-solving skills
In order to maintain and build upon our research capacity and ability to solve problems
into the future, we will plan the introduction and updates of research facilities that
support these capacities from a medium- to long-term perspective, and shape andmaintain this on an appropriate scale.

Given harsh budget constraints, we will introduce carefully selected, large-scale researchfacilities that are essential in resolving issues for the electric power industry. The main
research facilities that we plan to introduce in fiscal 2014 are as follows.
 Testing facility for fuel coolability in light water reactors: To utilize in research toenhance the safety of light water reactors
 Extension of centrifuge shaking table: To utilize in the development and testing of a
new seismic design method capable of assessing slope failure Low-voltage distribution system coordination testing facility: To utilize in research on
maintaining quality and public safety of electric power in a low-voltage distribution
system to prepare for increasing introduction of PV/EV (to be completed in fiscal
2015) Basic equipment for battery performance assessment and material adjustment: To
utilize in research on internal deterioration of rechargeable batteries, life spanestimation and research on materials assessment
 Updates to electric power system simulator: Updates to deteriorated power generator
unit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. To this end, we train
personnel with advanced expertise in a wide range of fields through long-term dispatch toJapanese and international research institutes and electric power companies.



We will build and expand a highly effective network with Japanese and overseas research
institutes with impressive expertise (such as the US-based Electric Power ResearchInstitute, Électricité de France, Japan Atomic Energy Agency and the Marine Ecology
Research Institute) that will complement our scientific knowledge.

- 22 -

4. Management and application of intellectual property

We will review our approach to intellectual property strategy tailored to thecharacteristics of our research results and our assumed clients, based on our “Portfolio of
Research Subjects.”



We endeavor to secure, maintain and utilize intellectual property that can be expected tomake a significant contribution to society via the electric power industry. We will
efficiently pursue license contracts of patents and software. In particular, we will review
the need for overseas patents to be submitted and maintained in terms of
cost-effectiveness. We will resign overseas patents that are expected to have low
utilization.



We implement Security-Export-Control management, and will strive to ensurecompliance with Foreign Exchange and Foreign Trade Act of Japan.



We will continue to offer a download service of our research reports for free, in order toencourage the broad use of our research output.



As an academic research organization, we will participate in national and academic
committees, thus contributing to the establishment of specifications, standards andtechnical standards for the energy and environment.

5. Promoting funded research

We will proactively undertake funded research that meets the needs of the electric powerindustry, and will promptly provide results that help to resolve issues on the front lines.

We will receive government funding for research on issues related to specifications andstandards that will contribute to the electric power industry. We will also take up thechallenge of research that leads the way in resolving future issues that will face theelectric power industry in order to refine our research capacity and expand our “Portfolio
of Research Subjects.”



We will facilitate the activities of the PD Center, which gives certification exams forexperts of ultrasonic inspection working with nuclear power plant components. We will

- 23 -

also facilitate activities of the High Power Testing Laboratory, which performs
short-circuit tests on electric power equipment.

- 24 -

Administration

1. Further cost-cutting

We will keep routine costs in line with levels in fiscal 2013. To achieve this, we will
review all operations to offset higher operating costs due to higher prices and asignificant increase in assets for which fixed asset taxes must be paid as a result of ourshift to the status of a general administrative corporation. We will suspend or postpone
research and streamline operations in order to curb operating expenditures across theboard.

With our commissions and procurement, we will not only use competitive bids inselecting contractors and revise specifications, but will also cancel projects or move themin-house based on a review of the necessity for each operation in order to cut costs on an
ongoing basis.

In order to maintain the research environment while still cutting costs, we will establish afacility environment plan that clarifies priorities.



We will examine the likelihood that we would use facilities in the future and continue toretire and sell facilities that we do not expect to use in order to reduce future obligations
such as maintenance costs and fixed asset taxes. We will also review the need, priority
and repairs needed, and clarify medium- and long-term plans for facility maintenancecosts in order to find a balance between ongoing use and cost-cutting.



We will continue with the cuts to salaries at the same level as in fiscal 2013 (30% forexecutive compensation and 10% for senior officers’ and general employees’ salaries).
Moreover, we will continue with measures to reduce personnel expenses to curb overall
personnel expenses.

2. Steady establishment of research bases

We will steadily move ahead with efforts to consolidated research bases into two bases,
one in the Yokosuka area and one in the Komae area, in order to establish the research- 25 -

environment essential in maintaining and improving our research capacity for the future
while also reducing fixed management costs. This will be funded with the income
generated from the sale of some of the land in the Komae area in fiscal 2013 and aim forearly completion.
In the Yokosuka area, which we hope will become a “research base for the energy
industry technology,” we will design new research buildings to hold the researchdivisions moved from the Komae area, and will begin construction work this fiscal year
(tentative completion date of spring 2016). The move of the No. 7 Research Building(tentative name) and Thermal Hydraulics Building (tentative name) from the Komae area
will begin in fiscal 2014 (construction completed in fiscal 2013). In addition, estimatesand construction blueprints for the Materials Analysis Building (tentative name) are being
prepared and administrative procedures are moving ahead.

In the Abiko area, which is intended as a “research base for nature and the environment,”
we will make and gradually implement specific individual plans for repairs and upgrade
work in order to utilize existing facilities and equipment, based on the basic concept forthese areas.

In order to focus research at these two research bases and reduce personnel in theadministrative and management divisions, these divisions will be reorganized with thetransfer of the Intellectual Property Center and Administrative Support Center functions,currently located in the Komae area, to the Abiko area. We will design specificorganizations and systems to be implemented in fiscal 2015. During this reorganization
process, we will consider not only streamlining operations to enhance links with the head
office functions and strengthening research support systems, but we will consider thedevelopment and utilization of personnel taking into account the characteristics ofoperations and differences in the expertise required for them. Moreover, we will establish
a common area in the Abiko facility, where most employees will be transferred.

3. Promoting personnel’s job performance and hiring diverse staff in line with researchdevelopment
Extensive support (personal support) of each individual employee is the most important- 26 -

part of our human resource management, and we will proactively use individual
consultations with the Human Resource Department to help raise motivation and utilize
human resources.


We will establish a plan for hiring researchers in light of our “Portfolio of Research
Subjects.” Moreover, we will utilize the “special limited-term research position,”
introduced from fiscal 2014, in order to accelerate our efforts to address urgent andimportant subjects. We will also hire researchers with sophisticated expertise that gives
them the ability to begin contributing immediately from among the many options
available in different fields and industries.



While we will continue to reduce administrative personnel, we will consider assigningpersonnel to positions in which they can optimize their abilities, depending on eachindividual’s suitability, in anticipation of the transfer and reorganization.

4. Effective dissemination of research results and research activities to electric utility
and publicWith a focus on trends in the electric utility, which may experience major transformations,
we will carry out publicity activities that will enhance CRIEPI’s presence. Specifically,
we will provide the media with information based on society’s interests and needs, holdmeetings to present research results and publish “CRIEPI News”, “CRIEPI TOPICS” andothers in order to continually share our research results on a timely basis.

In addition, we will strive for a close affiliation with electric power companies, and will
also strengthen our public hearing activities by exchanging views with and collecting
information from external experts and diverse media. The information obtained throughthese activities will be used to deepen recognition of issues, improve future research
operations and facilitate publicity activities.

5. Sound and rigorous pursuit of business operations


We will continue efforts to strengthen governance and risk management and establish andimprove compliance awareness, as well as ensure sound and rigorous administration with- 27 -

autonomy.
We will complete our Plan on Expenditures for Public Benefit within the intended period(fiscal 2012 to fiscal 2014).



We will continue to enhance information security by strengthening technical measuresand educating executive officers.



We will also augment our business continuity plan (BCP) to prepare for large-scale
natural disasters.

- 28 -

Workforce
CRIEPI’s basic policy aims to reach an equilibrium point of about 800 employees.
Accordingly, we will maintain the current number of research staff, but gradually decrease thenumber of office staff by streamlining office work. We will endeavor to curb the total
workforce by being selective in accepting other staff, such as special visiting researchers(workforce at the start of the fiscal year numbered 845 in fiscal 2011, 836 in fiscal 2012, 821
in fiscal 2013 and 808 in fiscal 2014). Moreover, we are steadily taking steps to reduce theworkforce by suspending the employment of temporary contract employees, as well as
considering rehiring measures based on the need for operations when rehiring employees who
are retiring at the mandatory retirement age.
Based on the above policies, the fiscal 2016-2018 workforce plan will be newly
established. The workforce at the start of fiscal 2014 is as follows.
(Expected as of April 1, 2014)
Item
1. Research

Number (people)

Percentage distribution (%)

710*Including one
temporary contract
employee*Including 14 visiting
researchers

87.9〔Breakdown according to fields〕〔100.0〕(1) Electrical Engineering

109

15.4

(2) Civil Engineering and Architecture

103

14.5

(3) Mechanical Engineering

96

13.5

(4) Chemistry

69

9.7

(5) Biology

56

7.9

(6) Nuclear Engineering

43

6.0

(7) Environmental Science

40

5.6

(8) Information and Communication

36

5.1

(9) Socio-economics

49

6.9

(10) Research Support and Management

109

15.4

98

12.1

808

100

2. Office work
Total

- 29 -

Statement of Budget

Budget Compilation
The fiscal 2014 budget for CRIEPI operations was compiled based on research plans.
The main points are as follows.

1. Changes in general net assets(1) Recurring revenue amounted to 26,245 million yen.


Benefit income from electric utility companies amounted to 23,565 million yen.

Business revenue stood at 2,350 million yen.
Of this business revenue, revenue from nationally funded research accounts for 1.5
billion yen.
Other business revenue, including revenue from short-circuit tests and revenue fromjoint research, totals 850 million yen.



Other revenue, such as interest payments, amounted to 90 million yen.

(2) Ordinary expenses amounted to 29.7 billion yen.
Business costs related to research totaled 27,887 million yen.
Of these business costs, personnel expenditures such as salaries and retirement
benefit costs totaled 9,042 million yen.
Operating expenses, including consumable costs, outsourcing costs and amortization
costs, amounted to 18,845 million yen.

Management costs related to headquarters operations were 1,813 million yen.
Of this, personnel expenditures such as compensation for executive officers, salaries
and retirement benefit costs totaled 1,018 million yen. Operating expenses, such as
consumable costs, totaled 795 million yen.

(3) Non-recurring costs totaled 239 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 50 million yen.
(2) Transfers to general net assets totaled 240 million yen due to amortizations related to thedesignated net assets included in special assets and other factors.

- 30 -

3. Balance of net assets at fiscal year-end
Net assets in this fiscal period fell a total of 3,884 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 37,360 million yen.

- 31 -

BudgetThe fiscal 2014 budget, compiled based on the above, is as follows.

Fiscal 2014 Budget for Revenues and Expenditures
From April 1, 2014 through March 31, 2015
(Unit: Million yen)
Subject

BudgetRemarks

I Changes in unrestricted net assets
1. Operating activities(1) Recurring revenue① Benefit income
Current benefit income② Business income
Funded research business income
Other business income③ Other income
Interest revenue
Facility use fees received
Miscellaneous income④ Transfers from restricted net assets

23,565
2,350
1,500
850
90
5
80
5
240

Total revenue and gains

26,245(2) Ordinary expenses① Expenses for projects and programs
Personnel expenditures
Wages and allowances
Retirement benefit expenses
Welfare expenses
Operating expenses
Consumable costs
Publication costs
Lighting, heat and water utility costs
Outsourcing costs
Joint research contribution
Repair costs
Rental costs
Tax and dues
Travel and transportation costs
Communication and transport costs
Other operating expenses
Amortization costs

9,042
6,998
1,073
971
18,845
1,475
375
1,025
6,090
950
1,390
270
550
745
90
755
5,130

Sub-total for expenses for projects and programs

27,887② General and administrative expenses
Personnel expenses
Executive officer compensation
Wages and benefits
Retirement benefit expenses
Welfare expenses
Provision for directors’ retirement benefits
Operating expenses
Consumable costs
Publication costs
Lighting, heat and water utility costs

1,018
128
578
90
134
88
795
6
45
28

- 32 -

Outsourcing costs
Repair costs
Rental costs
Tax and dues
Travel and transportation costs
Communication and transport costs
Other operating expenses
Amortization costs

116
13
342
51
34
6
109
45

Sub-total of general and administrative expenses

1,813

Total expenses and losses

29,700Total changes in operating activities for the year

△ 3,455

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

239

Total non-operating expenses and losses

239
△ 239

Total changes in non-operating activities for the year

△ 3,694

Total changes in unrestricted assets
Unrestricted assets at beginning of year

40,486

Unrestricted assets at end of year

36,792

II Changes in restricted net assets① Subsidies received
Subsidies received② Transfer to unrestricted net assets

50
240
△ 190

Total changes in restricted net assets for the year
Net restricted assets at beginning of year758

Net restricted assets at end of year

568

III Net assets at end of year

37,360- 33 -