[Japan] Shikoku Electric Power Invests in a U.S. Startup, LO3 Energy

On March 12, 2021, Shikoku Electric Power (Yonden, Headquarters: Takamatsu City, Kagawa Pref.) announced that it has invested in LO3 Energy, a Portland, Oregon-based venture company that provides a next-generation electricity trading platform. This will be Yonden’s first investment in an international startup.

In recent years, the movement towards decentralization has accelerated various changes in the energy sector. Yonden sees this as a business opportunity, aiming to develop new services by leveraging DER (Distributed Energy Resources) technologies. LO3 Energy has had extensive experience in developing cloud-based trading platforms that enable electricity trading among DERs in the United States and Europe. Through this investment, Yonden hopes to gain new knowledge and expertise in digital trading platforms from LO3 Energy, and will expand its platform business in Japan to promote P2P electricity trading among consumers who own and operate renewable energy sources. Yonden will continue to seek and build the next growth engine for their business expansion by aggressively investing in venture companies that can be expected to take advantage of the synergistic benefits derived from the deal.[1]

[1] https://www.yonden.co.jp/press/2020/__icsFiles/afieldfile/2021/03/12/pr002.pdf

[Japan] Chugoku Electric Power and Chudenko Jointly Acquired Equity in a Taiwanese Independent Power Producer

Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Pref.) and Chudenko Corporation (Headquarters: Hiroshima City, Hiroshima Pref.), EnerGia’s subsidiary that provides power facilities construction services, announced on March 9, 2021 that they have jointly acquired a 25 percent share of Feng Ping Power through their investment company, C&C Investment. Feng Ping Power is a Taiwanese independent power producer (IPP) that has been constructing the Feng Ping Xi hydropower station in Hualien County, Taiwan.

It is the second time EnerGia and Chudenko have jointly invested in an overseas IPP, and the first time for both firms to invest in an overseas hydroelectric power project[1]. The Feng Ping Xi hydropower station is scheduled to begin commercial operations in 2024 and its output is expected to 37.1MW. Taiwan Power (Headquarters: Taipei, Taiwan), a state-owned utility, will be a purchaser of the station’s power. The EnerGia Group will continue its efforts to advance the development of technologies that contribute towards carbon neutrality. [2]

[1] Meanwhile, this is the eight case for EnerGia to invest oversea power generation projects.

[2] https://www.energia.co.jp/press/2021/13019.html

[Japan] TEPCO Renewable Power Joined an Offshore Wind Demonstration Project

On February 4, 2021, TEPCO Renewable Power (TEPCO RP, Headquarters: Tokyo) announced that it has joined Denmark’s TetraSpar Demonstrator, a demonstration project for testing the TetraSpar floating offshore wind foundation. The project was jointly launched by RWE Renewables (RWE, Headquarters: Essen, Germany), a leading renewable energy solutions provider; Shell New Energies (Shell, Headquarters: The Hague, Netherlands); and Stiesdal Offshore Technologies (SOT, Headquarters: Odense C, Denmark), a Danish company that develops wind power technologies. TEPCO RP will own a 30% share of the TetraSpar Demonstrator.

The project has assembled the TetraSpar floating offshore wind turbine foundation at the port of Grenaa in Denmark. TEPCO RP will contribute its efforts to the project by providing its technical knowledge from the electric power business that Tokyo Electric Power (TEPCO, Headquarters: Tokyo) has developed over the years.

The wind turbine foundation is comprised of a tubular steel pipe and a floating keel. The tubular pipe was manufactured by Welcon (Headquarters: Give, Denmark). The pipe was delivered to the port of Grenaa, Denmark in the summer of 2020 and was assembled on the site in less than two months. It was assembled quickly because TetraSpar does not require specific processes such as welding at the time of assembly, and because the project has validated the assembling and manufacturing method. Compared to other floating wind turbines, it is likely that the TetraSpar design concept has an advantage in simplifying the manufacturing, assembly and installation processes and reducing costs.

The project plans to mount the wind turbine on the foundation and then test it at the Marine Energy Test Centre (Metcentre) near Stavanger, Norway, where it will be fixed to the seabed with three anchor lines and connected to the power grid. The turbine is expected to start its operations in the summer of 2021. It will have an output of 3600 kW. The four companies hope that the project will: provide them with experience and knowledge in offshore wind turbine construction, installation, and operation; that it will refine the TetraSpar technology; and that the project will help to expand the use of offshore wind power.[1]

[1] https://www.tepco.co.jp/rp/about/company/press-information/press/2021/1572776_19679.html

[Japan] J-Power has Begun Hydrogen Production for a Japan-Australia Hydrogen Energy Supply Chain Pilot Project

J-Power, a Tokyo-based Japanese power producer, announced on February 1, 2021 that it has begun hydrogen production at a coal gasification and hydrogen refining facility located in Latrobe Valley, Victoria, Australia. The hydrogen production is part of its Japan-Australia Hydrogen Energy Supply Chain Pilot Project, which aims to develop and demonstrate technologies for hydrogen production, storage and distribution, and to facilitate the creation of a hydrogen supply chain in Japan.

The project is financially supported by the Victoria state government and the New Energy and Industrial Technology Development Organization (NEDO, Headquarters: Tokyo), a Japanese public R&D funding organization. The CO₂-free Hydrogen Energy Supply-chain Technology Research Association (HySTRA)[1] and the Australian Consortium[2] are also cooperating in the project. HySTRA is also separately carrying out a demonstration project led by NEDO for the establishment of a mass hydrogen marine transportation supply chain derived from unused brown coal (lignite).[3]

Victoria has abundant lignite resources. The coal has a high moisture content and is considered unsuitable for exporting and it is normally exclusively used by power plants adjacent to the mining sites. However, lignite can be converted into a syngas containing hydrogen. J-Power believes that the hydrogen from undeveloped lignite reserves in Australia has the potential to accommodate Japan's electricity demand. The project therefore aims to optimize the utilization of Australia’s lignite. J-Power is responsible for operating the demonstration facility for the coal gasification and hydrogen refining.

The hydrogen generated at the demonstration plant will be shipped from the port of Hastings in Victoria, Australia to the hydrogen discharging terminal on Kobe Airport Island. In the future, J-Power will collaborate and integrate with the CarbonNet project, a CO2 storage project being promoted by the Commonwealth of Australia and the Victoria state government, in order to manage the CO2 generated from the project. The by-product CO2 will be captured and stored underground. Through these projects, J-Power hopes to contribute to the formation of a hydrogen supply chain in Japan, as well as the realization of a decarbonized society. [4] [5]

[1] The CO₂-free Hydrogen Energy Supply-chain Technology Research Association (HySTRA) comprises J-Power; Iwatani (Headquarters: Osaka City, Osaka Prefecture), a trading company supplying gases for industrial and household use; Kawasaki Heavy Industries (KHI, Headquarters: Tokyo) , a heavy machinery manufacturer; Shell Japan (Headquarter: Tokyo); Marubeni (Headquarters: Tokyo), a Japanese major integrated trading and investment business conglomerate; ENEOS (Headquarters: Tokyo), a petroleum company; and Kawasaki Kisen Kaisha (Headquarters: Tokyo), a Japanese transportation company.

[2] The Australian consortium consists of J-Power, Iwatani (Headquarters: Osaka City, Osaka Prefecture), a trading company supplying gases for industrial and household use; Kawasaki Heavy Industries (KHI, Headquarters: Tokyo), a heavy machinery manufacturer; Marubeni (Headquarters: Tokyo), a Japanese major integrated trading and investment business conglomerate; Sumitomo (Headquarters: Tokyo), a Japanese major integrated trading and investment business conglomerate; and AGL Energy (Headquarters: Sydney, Australia), an Australian utility.

[3] http://www.hystra.or.jp/about/

[4] https://www.jpower.co.jp/news_release/2021/02/news210201.html

[5] https://www.jpower.co.jp/english/news_release/pdf/news210201e.pdf

[Japan] J-Power and Genex Power Signed a Development Funding Agreement to Develop a New Wind Power Project in Australia

Tokyo-based Japanese power producer J-Power announced on November 27, 2020 that it has signed a Development Funding Agreement with Genex Power, a renewable energy development company in Sydney, Australia, to develop a 150MW capacity wind project, “Kidston State-3 Wind (KS3)”, in the state of Queensland in north-eastern Australia. The construction of the wind power plant is expected to begin in 2022 and it is expected to commence commercial operations in 2024.

Genex Power currently operates a 50MW solar firm, Kidston Stage 1 (KS1), and is working on four other renewable energy projects with a total additional capacity of 720MW in Australia. [1] [2]

J-Power and Genex Power will develop the Kidston wind power project by leveraging J-Power’s technical expertise in wind power operation in Japan and overseas, and Genex Power’s experience in the development of renewable energy in Australia. This project is J-Power’s first renewable energy project in Australia. J-Power will continue to work on its overseas expansion for power generation businesses, including renewable energy.[3] [4]

 

List of J-Power’s Renewable IPP Project (Overseas)

[Japan] Kyuden International Partnered with Enernet Global to Build a Local Electricity Supply Network Utilizing Renewable Energy

On September 14, 2020, Kyuden International (Headquarters: Fukuoka Prefecture), a subsidiary of Kyushu Electric Power (Kyuden, Headquarters: Fukuoka City, Fukuoka Prefecture), announced that it has invested in New York-based microgrid provider Enernet Global and signed a strategic partnership agreement with the vendor to build a local electricity supply network that utilizes renewable energy.

Launched in 2015[1], Enernet Global develops, finances, builds, and operates microgrids and Distributed Energy Resources (DER) projects for customers that operate diesel-fuel generators. The company uses its proprietary software platform to rapidly design the optimal equipment configuration and operations for its customers by combining a wide variety of DER, such as renewable energy generation and battery storage. Enernet Global is currently operating in Asia, Oceania, the Caribbean, and Australia.

Investing in Enernet Global is part of Kyuden’s strategy to transition from its diesel power generation by promoting renewable energy businesses. Based on the Kyuden Group Management Vision 2030, Kyuden will continue to reduce its carbon footprint to achieve a sustainable society.[2] [3]

[1] http://www.enernetglobal.com/company/

[2] http://www.kyuden.co.jp/press_h200914-1.html

[3] https://www.kyuden.co.jp/english_company_news_2020_h200914-1.html

[Japan] Kansai Electric Power, Kanden Power-Tech, and PT Medco Power Indonesia Formed a Strategic Partnership

Kansai Electric Power (KEPCO, Headquarters: Osaka Prefecture) and Kanden Power-Tech (KPT, Headquarters: Osaka Prefecture) announced on September 7, 2020, that they reached an agreement with PT Medco Power Indonesia (MPI, Headquarters: Jakarta, Indonesia), an Indonesian power generation company, to establish a joint venture that will accelerate the development of gas-fired power plants and operations and maintenance (O&M) businesses in Indonesia. KEPCO’s investment amount for the joint venture has not been disclosed, but according to Japanese media it is estimated to be a small amount of money.

Kanden Power-Tech is a wholly owned subsidiary of KEPCO which offers O&M services for power generation facilities.[1] MPI was established in 2004[2] as a group company for the power generation business unit of PT Medco Energi Internasional, the largest Indonesian energy company. MPI is actively developing power plants and is responsible for O&M services for 18 generation facilities in Indonesia, with a total capacity of over 3.3GW.

It is the first time that the KEPCO Group has entered into a strategic alliance with an overseas electric power developer. Based on its Medium-Term Management Plan, KEPCO views the development of its overseas business as an important earnings pillar and will continue to expand its overseas investments.[3][4]

[1] https://www.kepco.co.jp/corporate/pr/2020/pdf/0907_2j_01.pdf

[2] https://medcopower.co.id/about_us

[3] https://www.kepco.co.jp/corporate/pr/2020/0907_2j.html

[4] https://www.kepco.co.jp/english/corporate/pr/2020/pdf/sep07_1.pdf

[Japan] Osaka Gas Participates in the Three Rivers Natural Gas-Fired Power Plant Project in Illinois, U.S.

On August 25, 2020, Osaka Gas (Headquarters: Osaka) announced that it will participate in the Three Rivers Natural Gas-Fired Power Plant Project, which is in development in Illinois, U.S., through its wholly-owned subsidiary. On August 21, 2020, Osaka Gas signed an agreement to acquire 15% of the equity of Three Rivers from a subsidiary of Competitive Power Ventures (CPV), an Independent Power Producer headquartered in Silver Spring, Maryland, U.S. The transaction amount has not been disclosed, but according to Japanese media it is estimated to be worth several billion Japanese yen.

The facility is a 1,250MW natural gas-fired combined-cycle power plant with about 61% generation efficiency. The plant is expected to begin commercial operations in May 2023 and will produce and sell electricity in the PJM wholesale market, located in the eastern U.S.

Based on its long-term management vision and medium-term plan, “Going Forward Beyond Borders 2030”, Osaka Gas’s parent company, Daigas Group, will continue to explore overseas energy business opportunities and create a strong position in the U.S. as a priority market.[1] [2]

[1] https://www.osakagas.co.jp/en/whatsnew/__icsFiles/afieldfile/2020/08/24/20200825.pdf

[2] https://www.osakagas.co.jp/company/press/pr2020/1289500_43661.html

[Japan] Tokyo Gas America Established a Subsidiary in the U.S. and Acquired the Aktina Solar Project in Texas State

On July 29, 2020, Tokyo Gas America, a wholly owned subsidiary of Tokyo Gas headquartered in Houston City, Texas, announced that it had established the TG Aktina Holdings and its subsidiaries in Delaware, and will purchase the Aktina Solar Project (Aktina Solar) through the TG Aktina Holdings. The acquisition of Aktina Solar was completed on August 5, 2020.

Aktina Solar was developed by a renewable energy development company, Hecate Energy (Headquarters: Chicago, Illinois). The project is located in Wharton County, Texas State. The current installed solar capacity is relatively low in Texas, but it is expected to grow in the future as the state has seen one of the highest GDP growth rate and population growth rates in the U.S., and is suitable for solar energy generation. Atkina Solar marks the first time for Tokyo Gas Group to participate in an overseas solar power generation business from construction to operation. Aktina Solar will start construction in 2020 and will begin commercial operations in 2021. The expected maximum capacity is 630MW.

With the addition of the Aktina Solar Project, Tokyo Gas’ total renewable energy capacity will be over 1,200MW. Based on Tokyo Gas’ Management Vision Compass 2030, Tokyo Gas aims to achieve net-zero CO2 emissions and reach 5GW of renewable power generation capacity by 2030.[1]

[1] https://www.tokyo-gas.co.jp/Press/20200729-03.html

[Japan] J-Power Concluded a New Share Subscription Agreement with Australian Renewable Energy Company Genex Power

Tokyo-based Japanese power producer J-Power announced on August 3, 2020 that it had concluded a new share subscription agreement with Genex Power, a renewable energy development company in Sidney City, Australia. Genex Power currently operates a 50MW solar firm, Kidston Stage 1 (KS1), and is working on four other renewable energy projects with a total additional capacity of 720MW in Australia.

J-Power’s decision to invest in Genex Power is aligned with its business strategy to expand its renewable energy investments in both Japan and abroad. Australia has abundant renewable energy resources and the share of renewable energy in Australia is expected to increase in the future. The need for services and energy storage technologies is also expected to increase to accommodate higher levels of intermittent renewable energy sources.

J-Power has also signed a Technical Services Agreement with Genex Power to provide technical advice for the construction and operation of the Kidston Pumped Storage Hydro Project (K2-Hydro), located in northern Queensland. J-power will leverage the technical expertise that it has gained from Genex’s experience with pumped storage hydro power plant projects in Japan. Once completed, K2-Hydro is expected to have a capacity of 250MW.[1] [2]

[1] https://www.jpower.co.jp/news_release/2020/08/news200803.html

[2] https://www.jpower.co.jp/english/news_release/pdf/news200803.pdf

[Japan] Kansai Electric Power Acquired Shares of a Wind Farm Project in Texas, U.S.

Kansai Electric Power (KEPCO, Headquarters: Osaka City, Osaka Prefecture) announced on July 10, 2020, that KPIC USA, its wholly owned subsidiary, has concluded an agreement with Ares Infrastructure and Power (Headquarters: New York City, New York State, U.S.), an infrastructure and energy investment management company, to acquire 48.5 percent of the shares of Aviator Wind, an onshore wind farm project located in Coke County, Texas State, U.S.

The commercial operation of the Aviator Wind Farm Project (Aviator) is expected to begin in August 2020. Aviator is expected to be equipped with 191 wind turbines and will have a total capacity of 525MW. When it begins its commercial operations, Aviator will be the largest wind project in the U.S. This deal will be the first renewable energy investment by KEPCO in the U.S., and marks KEPCO’s fifth overseas wind power project investment, following two onshore projects and two offshore projects in Europe. Counting Aviator, KEPCO’s total capacity of its overseas renewable energy projects will be 949MW, and its overseas projects will reach a total of 2,861MW.

Based on KEPCO’s Medium-Term Management Plan, KEPCO seeks to expand its overseas business and renewable energy portfolio. With the addition of approximately 255MW of output equivalent equity portions from Aviator, KEPCO’s total renewable energy capacity will reach 4,720MW. KEPCO will continue to invest in renewable energy in order to reach a total of 6,000 MW in the 2030s.[1] [2]

[1] https://www.kepco.co.jp/corporate/pr/2020/0710_2j.html

[2] https://www.kepco.co.jp/english/corporate/pr/2020/pdf/july10_2.pdf

[Japan] Tokyo Gas Invested in Floating Wind Power Company Principle Power

Tokyo Gas (Headquarters: Tokyo[1]) announced on May 27, 2020, that it has invested more than 2 billion yen (approximately $18 million)[2] in Principle Power (Headquarters: Emeryville, California, U.S.), a wind power technology developer that owns the WindFloat technology. With its investment, Tokyo Gas has become one of Principle Power’s major shareholders.

WindFloat is a patented technology owned by Principle Power. It is a floating foundation for offshore wind turbines. The technology has achieved high stability in various aquatic environments and is expected to be widely adopted by floating offshore wind projects around the world in the future. It has already been used in some large wind turbine projects in Europe. The introduction of WindFloat technology is expected to drive the implementation of floating offshore wind turbines in Japan, where the availability of shallow seabeds is limited.

Tokyo Gas has been investing in renewable energy sources in Japan and overseas to achieve net-zero CO2 emissions. According to its management vision, Compass 2030, it aims to reach 5GW of renewable power generation capacity by 2030. Investment in Principle Power’s technology is expected to further accelerate this effort.

Takeshi Uchida, President of Tokyo Gas, said, “Our company is working to build up renewable energy sources inside and outside of Japan in order to achieve net-zero CO2 emissions as set forth in our Group Management Vision, “Compass 2030.” Principle Power, with its advanced technology and proven track record in the field of floating offshore wind, which is expected to grow in Europe and in Asia, is an ideal partner for Tokyo Gas, and this investment will give us a good start in promoting floating-type wind power generation projects in Japan and in other parts of the world.” [3] [4]


[1] https://www.tokyo-gas.co.jp/en/aboutus/profile.html

[2] ¥ 1 = $ 0.0092 USD. Based on the exchange rate as of June 4, 2020.

[3] https://www.tokyo-gas.co.jp/Press/20200527-01.html

[4] https://www.tokyo-gas.co.jp/Press_e/20200527-01e.pdf

[Japan] Kyushu Electric Power Group Acquired Geothermal Company Thermochem and PT. Thermochem Indonesia

Kyushu Electric Power (Kyuden, Headquarters: Fukuoka City, Fukuoka Prefecture[1]) announced on June 1, 2020, that Kyuden International Corporation[2] and West Japan Engineering Consultants[3], which are both subsidiaries of Kyuden, have concluded a share purchase agreement for the acquisition of Thermochem and PT. Thermochem Indonesia (Collectively “Thermochem”). The two companies, based in the U.S. and Indonesia respectively, offer geothermal technical and consulting services.[4]

Thermochem has contributed to the implementation of flow measurement and testing services during the well-drilling work at the Sarulla Geothermal Independent Power Producer (IPP) project in Indonesia. Kyuden has participated in this project, which is one of the largest geothermal IPP projects in the world. Thermochem has a strong reputation among geothermal developers and operators worldwide for its advanced technical capabilities and knowledge.

This is the first time that Kyuden Group has independently acquired an overseas business. Leveraging Termochem’s knowledge and experience, Kyuden will continue to expand its geothermal power generation business. Based on the Kyuden Group Management Vision 2030, the Kyuden Group plans to contribute to the development of renewable energy and a sustainable society by acquiring equity ownership of 5 GW of overseas electricity generation businesses. [5] [6]

[1] https://www.kyuden.co.jp/english_company_outline_index.html

[2] https://www.kyuden-intl.co.jp/en/company/

[3] https://www.wjec.co.jp/company/location.html

[4] https://www.kyuden.co.jp/var/rev0/0243/8936/12fkcd49.pdf

[5] http://www.kyuden.co.jp/press_h200601b-1.html

[6] https://www.kyuden.co.jp/var/rev0/0243/8935/bj2rx941.pdf

[Japan] Kansai Electric Power Began Commercial Operation of Hickory Run Thermal Power Plant in the U.S.

Kansai Electric Power (KEPCO, Headquarters: Osaka Prefecture) announced on May 18, 2020, that the Hickory Run Thermal Power Plant, located in Pennsylvania State, U.S., has begun its commercial operations. KEPCO, Tyr Energy, and Siemens Financial Services (Headquarters: Munich, Germany)[1] jointly participated in the Hickory Run Thermal Power Plant Project in 2017, carrying out the investment and construction. KEPCO owns a 30 percent of share of the project.[2] Tyr Energy (Headquarters: Overland Park, Kansas) is a subsidiary of ITOCHU (Headquarters: Tokyo), one of the largest Japanese general trading companies[3], and invests in and develops independent power projects.[4]

The Hickory Run Power Plant has adopted a combined cycle gas turbine generation with a capacity of 1,000MW. This is KEPCO’s first green field power project in North America. KEPCO dispatched experienced thermal engineers to the site during the construction stage to ensure the quality and efficiency of the process. The power plant will supply electricity to PJM (Pennsylvania-New Jersey-Maryland), which is the largest wholesale electricity market in North America. Now that the Hickory Run Power Plant is operating, the total capacity of KEPCO’s overseas power projects adds up to 2,606 GW.

Based on its Medium-Term Management Plan, overseas business is one of the important earnings pillars for KEPCO. KEPCO views North America as one of its most important markets, and aims to expand its businesses in the region.[5]

Overview of the Hickory Run Thermal Power Project[6]

(1)    Site: North Beaver Township, Lawrence County, PA, U.S.A.

(2)    Type: Combined Cycle

(3)    Output: 1,000 MW

(4)    Start of Construction: August, 2017

(5)    Commercial Operation: May, 2020

(6)    Project Company: Hickory Run Holdings, LLC

(7)    Project Partners:

-            Kansai Electric Power Group (Kansai):30%

-            ITOCHU Corporation Group (Itochu):50%

-            Siemens Group (Siemens):20%

◇ The Kansai Electric Power Co., Inc.

Establishment: 1951 President and Director: Takashi Morimoto Headquarters: 3-6-16, Nakanoshima, Kita-ku, Osaka, Japan Main Business: Energy generation, heat supply, telecommunications, gas supply, etc.

◇ ITOCHU Corporation

Establishment：1949 Chairman and CEO: Masahiro Okafuji Headquarters: 5-1 Kita-Aoyama 2-chome, Minato-ku, Tokyo, Japan Main Business: General trading company dealing in textiles, machinery, metals & minerals, energy & chemicals, food, general products & realty, ICT & financial business, etc.

◇ Siemens AG

Establishment: 1847 President and Chief Executive Officer: Joe Kaeser Headquarters: Munich, Germany Main Business: Building technology, digital factories, energy management, financial services, transportation, etc.

kansai 1.jpg
＜Profiles of Project Partners＞

＜Profiles of Project Partners＞

Table 1 KEPCO’s Operating Plants in the U.S.

Table 1 KEPCO’s Operating Plants in the U.S.

[Japan] Hokuriku Electric Power Accelerates Investment by Entering Overseas Power Business

Hokuriku Electric Power (Rikuden, Headquarters: Toyama City, Toyama Prefecture), released its 2030 Long-Term Vision Plan and Medium-Term Management Plan (2020 version) in April 2020. The 2030 Long-Term Vision sets a goal of investing more than 200 billion yen (approximately $1.9 billion[1]) through Fiscal 2030 as part of its growth strategy. Rikuden identified three strategic areas of growth to accelerate investment: 1) supporting the local community through addressing challenges, 2) creating new services through a fusion of existing assets and new technology, and 3) entering overseas power businesses. [2]

As part of its efforts to invest in overseas energy businesses, on April 21, 2020, Rikuden announced its investment in Japan Energy Capital 1 L.P., which targets overseas renewable energy business in Turkey and Jordan as well as energy technology venture companies in Europe and the U.S. It is Rikuden’s first overseas business investment. [3] On April 30, 2020, Rikuden further announced that it will establish Hokuriku Electric Power Business Investment G.K. in June 2020. The subsidiary will focus on accelerating investments in Rikuden’s strategic areas of growth. According to Rikuden, it will continue to cultivate new business opportunities and make investments to accelerate its growth. [4]

[1] ¥ 1 = $ 0.0094 USD. Based on the exchange rate as of May 8th, 2020.

[2] http://www.rikuden.co.jp/press/attach/19042502.pdf

[3] http://www.rikuden.co.jp/press/attach/20042101.pdf

[4] http://www.rikuden.co.jp/press/attach/20043003.pdf

[Japan] Hokkaido Electric Power Acquired Shares of Alten RE Developments America B.V.

On April 30, 2020, Hokkaido Electric Power (HEPCO, Headquarters: Sapporo City, Hokkaido) announced that it had acquired a 40% stake in Alten RE Developments America B.V. (Alten America, Headquarters: Amsterdam, Netherlands), as part of its participation in the operation of the Cubico Alten Aguascalientes Solar Project in Mexico. Alten America is a subsidiary of Alten Renewable Energy Developments B.V. (Alten), which invests in solar power generation businesses. Alten owns a 20% share of Alten America.

Alten America has a 30% stake in the Solar Power Project Company, thus HEPCO will own a 12% share of the Company. It will be the first time HEPCO has joined an overseas power generation business. The Cubico Alten Aguascalientes Solar Project, located in the El Llano municipality of Aguascalientes, includes two solar power plants with a total installed capacity of 290MW. The power generated by the two plants will be sold to the state-owned power utility, Comisión Federal de Electricidad (Headquarters: Mexico City, Mexico). HEPCO expects to earn a stable income from this investment as the Cubico Alten Aguascalientes Solar Project has a long-term power purchase agreement with Comisión Federal de Electricidad.[1] [2] This investment aligns with the goals laid out in HEPCO’s Management Vision 2030, in which HEPCO committed to expanding its domestic and overseas renewable businesses to contribute to a sustainable society.

[1] https://www.hepco.co.jp/info/2020/1250847_1844.html  

[2] https://wwwc.hepco.co.jp/hepcowwwsite/info/2020/__icsFiles/afieldfile/2020/04/30/200430.pdf

[Japan]　Kansai Electric Power Began Commercial Operations at Nam Ngiep 1 Hydropower Plant in Laos

On September 6, 2019, Kansai Electric Power Company (KEPCO), headquartered in Osaka Prefecture, announced that it has begun commercial operation of Nam Ngiep 1 Hydropower Plant in Lao People’s Democratic Republic (Laos) on September 5.

 The Nam Ngiep 1 Hydropower Plant’s construction began in October 2014. The plant consists of two power stations; the main power station has a generation capacity of approximately 270MW, and the re-regulation power station has a capacity of 20MW. The main power station is equipped with a large-scale dam, which is 167m high and 530m long. The plant is a Build Operate Transfer (BOT) project and supplies 1.6 billion kWh of electricity in Laos and Thailand annually. The hydropower plant is located on the Nam Ngiep River, one of the tributaries of Mekong River which flows across the border between Laos and Thailand.

 In April 2006, KEPCO signed a project development agreement (PDA) with the Laos government. In April 2013, a joint venture, Nam Ngiep 1 Power Company (NNP1) was established to develop the Nam Ngiep 1 project. The joint venture members are KEPCO, EGAT International, a subsidiary of Electricity Generating Authority of Thailand (EGAT), and Lao Holding State Enterprise, a subsidiary of the Laos government. The NNP1 is headquartered in Vientiane, the capital of Laos.[1] In August 2013, NNP1 entered into a 27-year power purchasing agreement (PPA) with EGAT and Électricité du Laos (EDL).[2]

 

[1] https://namngiep1.com/about-us/

[2] https://www.kepco.co.jp/corporate/pr/2019/0906_1j.html

[Japan] Kansai Electric Power Acquires Shares of Electricity North West to Join Electricity Distribution Services in the United Kingdom

On July 30, 2019, Kansai Electric Power announced that it would acquire 17.67% of the total shares of Electricity North West Limited, an electricity distribution network operator in the United Kingdom.[1] It will be the first time for Kansai to participate in the electricity distribution network in Europe. Kansai Electric Power will be the first Japanese power utility company to invest in a large-scale electricity distribution network company that is currently in operation overseas.

The United Kingdom is expected to expand distributed energy resource and shift its primary source of heating from gas to electricity, as part of its goal to reduce greenhouse gas emissions. The country’s electricity distribution network is therefore required to be upgraded. Electricity North West Limited provides electricity to about 5 million customers in the Manchester to Cumbria area through a 57,000km distribution network. Kansai Electric Power will work with Electricity North West Limited to upgrade and maintain the local electricity distribution networks, while exploring for more business opportunities in the United Kingdom.[2]

[1] https://www.kepco.co.jp/corporate/pr/2019/pdf/0730_1j_01.pdf

[2] https://www.kepco.co.jp/corporate/pr/2019/0730_1j.html

[Japan] J-Power USA Development has ordered two M501 J-series air-cooled power turbines for the Jackson Generation Project in Illinois

Mitsubishi Hitachi Power Systems (MHPS) announced on July 1, 2019, that J-Power USA Development (J-Power), an international power generating company[1], has ordered two of Mitsubishi’s M501 J-series air-cooled (M501JAC) power turbines. The turbines will be used at the 1,298 MW Jackson Generation Project, a Gas Turbine Combined Cycle Power Plant (GTCC) that will be built in Elwood, Illinois. The facility is expected to begin commercial operations in April 2022. The electricity generated by the facility will be supplied through PJM, an energy market in the eastern U.S.

The Jackson Generation Project is the world’s first project to introduce a JAC-type gas turbine with air cooling for the combustor. The gas turbine will be operated at a turbine inlet temperature of 1,600°C, aiming to improve the plant’s efficiency and reduce greenhouse gas emissions. The project’s power generation can reach 64% efficiency, and it is anticipated to be 99.5% reliable. The project will also adopt Mitsubishi’s MHPS-TOMONI digital solutions platform to optimize power plant operations.[2]


[1] https://jpowerusa.com/about_japan/

[2] https://www.mhps.com/jp/news/20190708.html?_ga=2.69733648.1828284031.1563074247-236393945.1554096284

[Japan] Osaka Gas Singapore and Energy Pro Established OE Solar in Thailand

Osaka Gas Singapore, a wholly-owned subsidiary of Osaka Gas, announced on July 3, 2019, that it and Energy Pro Corporation, a solar power company in Thailand, had agreed to jointly establish OE Solar in Thailand. OE Solar will supply the electricity generated from solar energy to commercial and industrial customers in Thailand. OE Solar will install photovoltaic facilities on building roofs or grounds surfaces owned by its customers to produce electricity for a 15-to-20-year supply.

Daigas Group, which owns Osaka Gas, has expressed its intention to explore overseas energy business opportunities in “Going Forward Beyond Borders 2030”, its long-term management vision and medium-term plan. Daigas Group is targeting the Southeast Asian market and intends to increase its investment in the region. In accordance with Daigas Group’s goal to secure at least 1 GW of renewable energy by about 2030, the establishment of OE Solar will be Osaka Gas’s first involvement in a renewable energy generation project in Southeast Asia.

Thailand expects in its Power Development Plan 2018 that renewable energy will account for 20% (excluding hydropower imports) of all power sources in the nation in 2037. This is why renewable energy is attracting increasing attention in Thailand.[1]

Source: http://www.osakagas.co.jp/company/press/pr...