Tokyo Electric Power Co. has postponed the restart of its Kashiwazaki-Kariwa nuclear facility in Niigata Prefecture, citing unresolved safety and regulatory hurdles. The delay, expected to push the restart to late 2026, heightens Japan’s reliance on fossil fuels and could pressure electricity prices and regional grid reliability.
- Kashiwazaki-Kariwa nuclear plant restart delayed to late 2026
- Plant has 8.2 GW capacity, representing ~10% of Japan’s nuclear power output
- Electricity spot prices in Hokuriku region exceed 28 yen/kWh
- TEP:JP stock dropped 3.2% on the announcement
- Increased reliance on LNG and coal raises short-term emissions and energy costs
- JGB:JP yields may face upward pressure due to fiscal implications
Tokyo Electric Power Co. (TEP:JP) has announced a delay in the planned restart of its Kashiwazaki-Kariwa nuclear power plant, the largest in Japan, located in Kashiwazaki City, Niigata Prefecture. The facility, currently offline since 2011 following a major earthquake, was previously scheduled to resume operations in early 2025. The latest update confirms that full operational readiness will now be delayed until at least the fourth quarter of 2026 due to lingering safety assessments and regulatory review processes. The Kashiwazaki-Kariwa plant, with its seven-unit capacity of approximately 8.2 gigawatts, represents nearly 10% of Japan’s total nuclear generating capability. Its prolonged inactivity increases the country’s dependency on imported liquefied natural gas and coal, directly affecting wholesale electricity prices. As of early 2026, Japan’s average electricity spot prices have risen by 18% year-on-year, with regional peaks in the Hokuriku area exceeding 28 yen per kilowatt-hour. The delay impacts Japan’s energy transition goals, as nuclear power remains a key pillar in the government’s strategy to reduce carbon emissions by 46% by 2030. The extended outage may also strain the regional transmission network managed by Tokyo Electric, affecting supply to industrial hubs in the Chubu region. Stock markets have reacted, with TEP:JP shares declining 3.2% in early trading, while related energy firms such as Kurita Holdings (KUR:JP) and Tokyo Gas (TOK:JP) saw modest volatility. Market analysts expect the delay to influence short-term JGB:JP yields, as increased fossil fuel spending may pressure Japan’s fiscal outlook. The government faces mounting pressure to accelerate nuclear safety reforms while maintaining public confidence. The situation underscores the fragile balance between energy security, cost, and environmental targets in Japan’s post-Fukushima energy landscape.