Tokyo Electric Power Co. Holdings said it will consider decommissioning two aging reactors at a nuclear power plant in Niigata Prefecture to win local support for restarting later models.

It sweetened its Oct. 16 announcement by simultaneously offering to provide the prefecture with 100 billion yen ($661 million) over roughly 10 years to bring benefits to the area.

The move was criticized by some as a crude attempt to buy off the local administration and community.

“To ensure the safe operation of the Kashiwazaki-Kariwa nuclear power plant, we will consider in concrete terms decommissioning the No. 1 and No. 2 reactors,” TEPCO President Tomoaki Kobayakawa told a Niigata prefectural assembly session on Oct. 16.

TEPCO is seeking to restart the No. 6 and No. 7 reactors at the plant, which straddles the city of Kashiwazaki and the village of Kariwa. The plant has seven reactors in total.

Since 2017, Kashiwazaki Mayor Masahiro Sakurai has insisted that TEPCO clarify its plans to decommission at least one of the reactors numbering 1 through 5 as a condition for approving reactivation of the No. 6 and No. 7 reactors.

He has stressed the need to mitigate the cumulative risk posed by multiple reactors at a single location.

A formal decision to decommission the No. 1 and No. 2 reactors would mark the first such case at the Kashiwazaki-Kariwa complex.

TEPCO previously only said it would “secure a clear path toward an optimal mix of electricity sources, including possible decommissioning” in reference to the reactors 1 through 5.

Kobayakawa’s remarks on Oct. 16 marked the first time the company has specifically outlined a policy to consider decommissioning.

The Kashiwazaki-Kariwa complex is one of the world’s largest nuclear power plants. It has a maximum generating capacity of 8.21 gigawatts.

The No. 1 reactor, the oldest of the seven, was commissioned 40 years ago, while the No. 2 reactor began commercial service 35 years ago.

While the No. 6 and No. 7 reactors have cleared safety screenings by the Nuclear Regulation Authority, a required step for reactivation, TEPCO has not applied for regulatory reviews for the remaining five reactors.

TEPCO is prioritizing the restart of the No. 6 reactor but has yet to obtain the Niigata prefectural government’s consent, which is also a requirement for reactivation.

Once the No. 6 reactor is brought back online, the company plans to devote a year and a half to deciding on the issue of decommissioning.

Kobayakawa noted that the decommissioning process generally proceeds in stages over 30 to 40 years.

Regarding the 100 billion yen financial contribution, specific programs will be worked out with prefectural officials. The funds are intended for sectors with growth potential within the prefecture, such as businesses geared to disaster preparedness and decarbonization initiatives.

Senior industry ministry officials also told the prefectural assembly session on Oct. 16 that the central government plans to cover the more than 100 billion yen in expected costs for developing evacuation roads in preparation for a disaster.

TEPCO is burdened with compensation and decommissioning costs from the 2011 triple meltdown at the Fukushima No. 1 nuclear power plant.

Restarting the Kashiwazaki-Kariwa reactors is a critical lifeline for rebuilding its business.

Bringing a single reactor back online is projected to improve the company’s annual profit by approximately 100 billion yen, thanks to reduced fuel costs for thermal power generation.

Gaining consent from the Niigata prefectural government remains the “final hurdle” for restarting the Kashiwazaki-Kariwa reactors.

However, deep-rooted mistrust lingers toward TEPCO in the aftermath of the disaster at the Fukushima plant.

TEPCO and the central government hope to foster understanding for restarts with a range of financial steps to support the local community.

“There have been calls for decommissioning the reactors 1 through 5, and residents will likely appreciate (the measures announced by the government and TEPCO),” said a prefectural assembly member from the Liberal Democratic Party.

This, the official said, “leaves the prefectural governor with no choice but to make a decision (on a restart).”

However, an opposition assembly member decried the financial assistance as  “tantamount to buying off local consent.”