Photo/Illutration Kansai Electric Power Co. executive Hitoshi Mizuta, left, meets with Fukui Vice Governor Yasuhiro Nakamura in Fukui on Aug. 25 to explain a new funding initiative for communities that host the company’s nuclear plants. (Masatomo Norikyo)

Kansai Electric Power Co. will significantly increase its annual contributions to 5 billion yen ($33.8 million) to support regional development in areas that host its nuclear power plants in Fukui Prefecture.

The larger sum is aimed at securing continued support for the utility in the prefecture, home to the most nuclear reactors in the country.

Hitoshi Mizuta, head of Kansai Electric’s nuclear power division, visited the Fukui prefectural government office on Aug. 25 to explain the new initiative to Vice Governor Yasuhiro Nakamura.

Mizuta emphasized that the program demonstrates a stronger commitment to solving local issues and promoting regional development.

In fiscal 2025 alone, Kansai Electric plans to contribute 5.78 billion yen, based on such factors as reactor performance and fuel costs. Higher power generation generally results in a larger contribution.

In addition, the company will make an initial one-time contribution of 15 billion yen.

The utility’s previous annual contributions ranged from 100 million to 200 million yen between fiscal 2021 and 2023.

The new funding will be placed in a trust bank, and grants will be awarded through a screening process conducted by an independent third-party organization.

In addition to the prefectural government, all municipalities in the region can apply for the grants, not just the three towns of Mihama, Oi and Takahama, which host Kansai Electric nuclear power plants.

While the funding is intended to support health care, transportation and infrastructure projects across the prefecture, the utility stated that the specific use of the funds will not be disclosed to the public.

The initiative follows a key development earlier this year, when Fukui Governor Tatsuji Sugimoto approved Kansai Electric’s roadmap for transferring spent nuclear fuel out of the prefecture, despite skepticism about the plan’s feasibility.

That approval was seen as a vital step toward the continued operation of the utility’s nuclear plants in the region.

At the time, Nozomu Mori, Kansai Electric’s president, pledged to establish a sustainable funding program to support local communities.

Separately, the company has revealed plans to begin site surveys for a potential new reactor at its Mihama plant. The move underscores the need for maintaining support from host communities.

(This article was written by Masatomo Norikyo and Yo Noguchi.)