Document / Publication
Asian Development Bank Institute (ADBI)
This paper analyzes the impacts of the 11 March 2011 earthquake and tsunami at the Fukushima nuclear power plant in Japan, which were amplified by a failure of coordination across the plant, corporate, industrial, and regulatory levels, resulting in a nuclear catastrophe. It derives generic lessons for industrial structure and regulatory frame of the electric power industry by identifying the two shortcomings of a horizontal coordination mechanism: instability under large shock and the lack of "defense in depth."
The suggested policy response of this document is to harness the power of "open-interface-rule-based modularity" by creating an independent nuclear safety commission and an independent system operator owning the transmission grids in Japan.