[Japan] Hokuriku Electric Power Released its 2030 Long-Term Vision Plan and its Medium-Term Management Plan from 2019 to 2022

On April 25, 2019, Hokuriku Electric Power Company released its 2030 Long-Term Vision Plan, along with an implementation plan, the Medium-Term Management Plan from 2019 to 2022. The plans recognize the changing landscape of Japan’s energy industry and present a set of action plans for Hokuriku Electric Power Company to achieve sustainable growth. Hokuriku Electric Power Company serves customers in the northwestern part of Japan, in the Hokuriku region, which includes Toyama, Ishikawa, and part of Fukui and Gifu prefectures.

Japan’s energy industry has experienced significant changes caused by population decline, the introduction of emerging technologies such as IoT, AI, and EVs, environmental regulations for climate change, and by the intensifying competition led by the implementation of a deregulated electricity retail market. Hokuriku Electric Power expects further changes in the future and foresees the disruption of existing business models due to the adoption of innovative technologies and the growing awareness of the need to promote a sustainable society.

To accommodate the changes, Hokuriku Electric Power developed its 2030 Long-Term Vision Plan and its Medium-Term Management Plan from 2019 to 2022. The two pillars of the plans are 1) the expansion of a comprehensive energy business, including increasing clean energy generation capacity, maintaining a stable electricity supply, and increasingly providing more value-added services to customers; and 2) cultivating new growing businesses, including expansion into domestic and overseas business markets, new products, and service development.

[Japan] Tohoku Electric Power and Toshiba ESS Agreed to Conduct Joint Research on Peer-to-Peer Electricity Trading Between Individuals Using Distributed Energy Resources

On April 26, 2019, Tohoku Electric Power and Toshiba Energy Systems & Solutions (Toshiba ESS) jointly announced that they had agreed to conduct research on peer-to-peer (P2P) energy trading between customers who are using distributed energy resources (DER). The study will assess the potential business model for P2P energy trading as well as the impact on electrical distribution systems. Toshiba ESS, a subsidiary of Toshiba Corporation, was founded in 2017 to develop technologies, such as Internet of Things (IoT) and Artificial Intelligence (AI) to improve energy systems and services.[1]

As the use of renewable energy and energy storage expands, it is predicted that in the future customers will be more likely to engage in P2P energy trading systems to trade the excess energy generated from their home. However, the utility’s business model for P2P energy trading is still uncertain. In addition, the impact of the increasing P2P energy trading on electrical power distribution systems is unknown. Tohoku Electric Power and Toshiba ESS began this joint research project in order to better understand and address these issues.

As part of the project, Tohoku Electric Power and Toshiba ESS will test the effectiveness of blockchain technologies, which will be utilized to record energy transactions. The project team will also build simulation models for P2P energy trading to optimize the distribution infrastructure and its operation. The project aims to develop potential business models to prepare for the expansion of P2P energy trading. The research will be carried out until the end of March 2020.[2]

[1] https://www.toshiba-energy.com/en/company/about.htm

[2] https://www.toshiba-energy.com/info/info2019_0426.htm

[Japan] NEDO Initiated the Third Phase of an Integrated Coal Gasification Fuel Cell Combined Cycle Demonstration Project

New Energy and Industrial Technology Development Organization (NEDO) recently announced that it had initiated the third phase of an Integrated Coal Gasification Fuel Cell Combined Cycle (IGFC) Demonstration Project on April 17, 2019. The third phase of the IGFC Demonstration Project will focus on combining an Oxygen-blown Integrated Gasification Combined Cycle (IGCC) with CO2 capture technology and fuel cells, aiming to verify the system performance. This system will capture CO2 from syngas to produce hydrogen-rich gas to use as fuel. The project is being conducted by NEDO and OSAKI CoolGen Corporation, a joint venture company between Chugoku Electric Power and Electric Power Development Company (J-POWER).

In Japan, coal-fired power generation accounts for approximately 30% of the domestic power generation. However, coal-fired power generates more CO2 than other fossil fuels. NEDO has launched the IGFC Demonstration Project in order to explore opportunities to reduce CO2 emissions from coal generation in FY2018. The project aims to develop a commercial-scale IGFC system (500 MW-class) with approximately 47% Higher Heating Value (HHV) and a CO2 capture rate of 90 percent. The first phase of the project consisted of a demonstration of Oxygen-blown IGCC and the second phase included testing the IGCC with CO2 separation and capture technology. The IGFC Demonstration Project will run until FY2022.[1]

[Japan] Kansai Electric Power Will Provide Power Distribution and Retail Electric Business in New Clark City in the Philippines

Kansai Electric Power announced on April 4, 2019, that it has obtained electric power distribution services in New Clark City in the Philippines. Kansai Electric Power will work with Marubeni[1] (a major integrated trading and investment business conglomerate), Chubu Electric Power, and the Manila Electric Company (MERALC) to provide power distribution service in New Clark City for 25 years.

The Philippines is currently developing New Clark City, an industrial city which used to be a U.S. Air Force Base. The project is operated by the Bases Conversion and Development Authority (BCDA), a government-owned and controlled development corporation.[2] In order to support the development of New Clark City, the group led by Kansai Electric Power will be responsible for retail electric business activities as well as design, construction, operation, and maintenance of the power distribution system through smart grid technologies. Through its subsidiary KPIC Netherland, Kansai Electric Power also plans to establish a local power distribution company with Marubeni, Chubu Electric Power, MERALCO, and BCDA, and to invest in a 9% stake in the company.

The group is currently preparing for the installation of the power distribution system. The system is scheduled to begin operation at the end of November in 2019, when a biennial multi-sports event, the Southeast Asian Games, will be held. The project is the first time that Kansai Electric Power has joined the power distribution and retail electric business outside of Japan.[3]

[1] https://www.marubeni.com/en/

[2] https://bcda.gov.ph/about-us

[3] https://www.kepco.co.jp/corporate/pr/2019/0404_2j.html

[Japan] Chugoku Electric Power and Shikoku Electric Power with Other Partners Will Acquire a Total of 27% Stake in the Yunlin Offshore Wind Farm in Taiwan

On April 5, 2019, Chugoku Electric Power and Shikoku Electric Power announced that they would participate in the Yunlin Offshore Wind Farm project in Taiwan, through the acquisition of interests from a German-based large renewable energy developer, wpd A.G., in collaboration with other Japanese companies, including Sojitz Corporation and JXTG Nippon Oil and Energy.

The Japanese consortium will acquire a total of a 27% stake in the 640MW Yunlin Offshore Wind Farm project from wpd A.G.[1], which will secure the remaining 73% stake in the company. Sojitz Corporation, a Japanese trading company[2], will have a 9.1% stake in the wind farm. C&C investment, established by Chugoku Electric Power Company, will have a 6.75% stake. JXTG Nippon Oil and Energy[3], a Japanese petroleum company, will also have a 6.75% stake, and Shikoku Electric Power will have a 4.4% stake.

The wind farm is expected to begin operation in December 2021 and will supply power to the Taiwan Electric Power Company for 20 years at a fixed price. It is the first time for Chugoku Electric Power and Shikoku Electric Power to join the oversees offshore wind power business. Chugoku Electric Power and Shikoku Electric Power plan to continue to participate in new overseas projects and will work to improve their profitability.[4]

[1] http://www.wpd.de/en/wpd/profile/

[2] https://www.sojitz.com/en/corporate/profile/index.php

[3] https://www.noe.jxtg-group.co.jp/english/

[4] https://www.yonden.co.jp/press/2019/__icsFiles/afieldfile/2019/04/05/pr004.pdf

[Japan] Keidanren Released a Policy Recommendation Report on Rebuilding Japan’s Power System

On April, 2019, the Japan Business Federation, called Keidanren, released a policy recommendation report titled “Rebuilding Japan’s Power System—Electric Power Policy to Support a Super-Smart Society, Society 5.0.” The economic organization is comprised of 1,376 Japanese representative companies, 109 industrial associations, and 47 regional economic organizations as of May 31, 2018, and plays a central role in assisting corporate activities by making policy proposals and taking actions to contribute to the self-sustaining development of the Japanese economy. The report highlights the future direction of Japan’s electric power policy in electric power generation, transmission, and distribution systems, and attempts to address current challenges.

Japan faces four main challenges in its electric power sector, including a high dependence (more than 80%) on fossil fuel power generation; the unexpectedly slower penetration of renewable energy, which is hindering Japan from decreasing its high dependence on fossil fuels; difficulties in restarting its nuclear power reactors that have received approval for their safety standards, due to a strong public antinuclear movement; and a failure to significantly reduce electricity pricing even after the recent deregulation of the retail electricity market. Additionally, the uncertainty of the current domestic business environment is discouraging power utilities from committing to major investments in power infrastructure.

In order to achieve “Society 5.0”, the main priority for Japan’s electric power policy should be securing a balance of ‘Safety + Energy Security, Economy, and Environment (S+3E),’ in line with the pursuit of Decarbonization, Decentralization, and Digitalization (3D). It is necessary to promote electric power investment, and to advance the development and implementation of new technologies. To encourage further investments, Keidanren recommends that the government should develop its next basic energy plan by considering the different potential scenarios for the future power system after 2030.

[Japan] Kyushu Electric Power Company and Exergy Power System Will Jointly Operate a Power Management Project in Ireland

On March 25, 2019, Kyushu Electric Power Company (also known as Kyuden) announced that it has partnered with Exergy Power System to jointly operate a power supply and demand management project in Ireland starting from the end of the 2019 fiscal year. The project will utilize a rechargeable battery system developed by Exergy Power System, a start-ups from the University of Tokyo that is developing next-generation hydrogen cells for energy storage.[1] Kyushu Electronic Power has been seeking to collaborate with start-ups to develop and explore new business opportunities since it initiated the “Kyuden i-Project” in fiscal year 2017, which focuses on pursuing innovation through concept creation, concept commercialization or deployment as service.[2] The collaboration with Exergy Power System is part of the Kyuden i-Project.[3]

[1] https://www.ut-ec.co.jp/portfolio/exergy

[2] http://www.kyuden.co.jp/var/rev0/0149/3839/o0wpb4su_p34-37.pdf

[3] http://www.kyuden.co.jp/press_h190325-1.html

[Japan] Toshiba Energy Systems & Solutions and Kawasaki Heavy Industries Jointly Offer Medium-Capacity Steam Turbines for Industrial Thermal Power Plants

Toshiba Energy Systems & Solutions (Toshiba ESS) and Kawasaki Heavy Industries (Kawasaki) announced on March 28, 2019, that they have reached a collaboration agreement to offer 100-200MW, medium-capacity steam turbines for industrial thermal power plants worldwide, starting immediately.

Given the increasing need for small to medium-capacity steam turbines to be cost-effective and to be widely used for different industries and utility applications in the global market, the design of small to medium-sized steam turbines needs to enhance their efficiency and flexibility by improving steam conditions and adopting reheat cycles. Accordingly, Toshiba ESS and Kawasaki has been conducting a joint research project in this area by leveraging Toshiba’s material and reliability technologies acquired through manufacturing steam turbines for thermal power plants, as well as Kawasaki’s compact, high-speed turbine and packaging technologies that have been developed through producing steam turbines for marine and industrial-use power generation. Toshiba ESS offers intermediate and low-pressure (ILP) turbines, and Kawasaki provides high-pressure (HP) turbine and reduction gear. The two companies will utilize both supply chains to produce medium-sized steam turbines and to expand their sales network in global markets.[1]

[1]

[Japan] Ministry of Economy, Trade and Industry Continues the Sale of Non-Fossil Fuel Energy Certificates

On March 25, 2019, Japan’s Ministry of Economy, Trade and Industry (METI) announced that it would continue selling non-fossil fuel energy certificates in Fiscal Year 2019. In May 2018, METI began to issue the certificates to certify electricity generated by renewable energy sources under the Feed-in-Tariff (FIT) Scheme for Renewable Energy, and established a non-fossil fuel energy trading market, which allows retail electricity providers (REPs) to purchase certificates representing the non-fossil fuel value.

If REPs sell electricity with the non-fossil fuel energy certificates, it is considered as renewable energy, which enables energy users to utilize their compliance with RE 100, an initiative launched by the Climate Group of the United Kingdom (UK) and the CDP, which is championing the use of 100% renewable energy for electricity for business operations.[1] The Climate Group of the UK, which seeks to accelerate action on climate change, is committed to work with global leaders and enterprises to tackle climate change.[2] CDP is a British non-profit organization that provides a discussion platform for companies, states, and investors to control their environmental impacts.

In February 2019, METI conducted a demonstration project in collaboration with many REPs and power producers to identify the origin of renewable energy sources based on their non-fossil energy value, as well as to confirm that it would be able to improve the FIT scheme. The non-fossil fuel energy trading market aims to encourage electric buyers to achieve the target ratio of non-fossil fuel energy set by the Act on the Promotion of Use of Non-Fossil Energy Sources and Effective Use of Fossil Energy Materials by Energy Suppliers.[3] 

[1] http://there100.org/

[2] https://www.theclimategroup.org/about

[3] https://www.meti.go.jp/press/2018/03/20190325005/20190325005.html

[Japan] Kansai Electric Power and Caulis’ Demonstration Project to Detect Unauthorized Bank Account was Approved under the Regulatory Sandbox Scheme

On March 6, 2019, the Ministry of Energy, Trade and Industry (METI), Government of Japan, approved a demonstration project to detect unauthorized activities on opening bank accounts through the internet, by using financial and electricity data under the Act of Special Measures for Productivity Improvement. The demonstration project is being developed by Kansai Electric Power (KEPCO) and Caulis, a Japanese cyber security solutions company[1]. The project will examine the viability of a new technology which is designed to effectively detect unauthorized activities on opening bank accounts at the Seven Bank[2] by combining financial information with electricity data collected from KEPCO’s electric facilities.

The objective of the project is to explore the cooperation between electricity companies and IT security providers in order to address social security problems. The results of the project will also shape the framework and regulations that promote the adoption of innovative technologies in businesses. The Act of Special Measures for Productivity Improvement entered into force on June 6, 2018. Under the Act, the Scheme for Demonstration of New Technologies, namely the Regulatory Sandbox Scheme, will encourage companies to adopt new technologies and innovative business models.[3]

[1] https://caulis.jp/en/#contact

[2] https://www.sevenbank.co.jp/corp/

[3] https://www.kepco.co.jp/souhaiden/pr/2019/0306_1j.html

[Japan] Kyushu Electric Power and Softbank Signed a Business Alliance Agreement for Joint Product Development

Kyushu Electric Power and Softbank[1], a Japanese mobile service company, signed a business alliance agreement on joint product and service development on March 12, 2019. The first joint services, ‘Home Discount Kyushu Electric Power Electric Set,’ a 100-yen monthly discount service, will begin to be offered on April 12, 2019, at both Softbank’s and Y Mobile’s mobile phone retail stores within the Kyushu Electric Power service area. This discount service will be available for existing customers who currently subscribe on Kyushu Electric Power’s rate plans and are using Softbank and Y Mobile’s mobile services and fixed communication services. It is also targeted to these mobile providers’ users who have already subscribed or will subscribe to ‘Kirei (beautiful) Life Plus, a web-portal service which enables consumers to access their energy and gas consumption/rate plan. The two companies plan to continue to work together to develop and provide valuable services for customers.[2]

[1] https://www.softbank.jp/en/

[2] http://www.kyuden.co.jp/press_h190312b-1.html

[Japan] Japan’s Agency for Natural Resources and Energy Released a Revised Strategic Roadmap for Hydrogen and Fuel Cells

On March 12, 2019, the Agency for Natural Resources and Energy under Japan’s Ministry of Economy, Trade, and Industry (METI) released a revised version of the Strategic Roadmap for Hydrogen and Fuel Cells. The revised strategic roadmap sets new specifications and cost breakdowns for basic hydrogen and fuel cell technologies, and provides goals and measures to promote the utilization of hydrogen resources and optimize hydrogen supply chains. The strategic road map aims to reduce the costs of hydrogen technologies considerably, accelerate the research and development of hydrogen and fuel cell technologies, explore potential markets for hydrogen electricity, and facilitate cooperation with other countries. The Agency for Natural Resources and Energy will host an expert working group to review the current progress of the achievements and implementation in the areas depicted in the roadmap.

The Strategic Road Map for Hydrogen and Fuel Cells was first released in 2014 and revised in 2016. The Agency developed three policy documents after the release of the strategic road map. The Basic Hydrogen Strategy was published in December 2017, the Fifth Strategic Energy Plan was released in July 2018, and the Tokyo Statement was issued in October 2018. Based on the strategic road map and these related policy documents, the Japanese government will promote public education about hydrogen and fuel cell technologies, and will seek cooperation with experts, academia, and other countries like the U.S. and France, in order to advance research activities and develop a legal framework.

[Japan] Kansai Electric Power Company’s Venture Capital Arm Invested in Genome Editing Company EditForce

K4 Ventures, a corporate venture capital subsidiary of Kansai Electric Power Company, announced on March 1, 2019, that it has invested in EditForce, a genome editing company, by the issuance of new shares through third-party allocation. EditForce is a venture company with a unique DNA/RNA editing technology.[1] EditForce has been focusing on pentatricopeptide repeat (PPR) protein platform technology, designed for the editing of not only DNA but also RNA. PPR technology is expected to be used in a wide range of fields, including medicine, agriculture, and chemistry. The firm’s investors include the University of Tokyo Edge Capital, QB Capital, and KISCO (an advanced materials maker).

K4 Ventures is investing new technologies development and deployment in areas like energy storage, mobility, Artificial Intelligence (AI), Internet of Things (IOT), big data, and robotics, as part of the Kansai Electric Power Group’s mid-term business plan to explore new business opportunities.[2]

[1] https://www.editforce.jp/company_info_top/about/

[2] https://www.kepco.co.jp/corporate/pr/2019/0301_4j.html

[Japan] TEPCO Power Grid and Tokyo Electric Power Services Signed an Underground Substation Consulting Agreement with Dhaka Electric Supply Company

On February 21, 2019, TEPCO Power Grid and Tokyo Electric Power Services (TEPSCO) announced that they has signed an underground substation consulting agreement with Dhaka Electric Supply Company (DESCO), a leading electric distribution company based in Dhaka, Bangladesh. The project is funded by the Japan International Cooperation Agency (JICA), and TEPCO Power Grid along with TEPSCO will serve as consultants for DESCO. While TEPCO Power Grid has over 40 years of experience with the construction and operation of underground substations, this is its first overseas consulting agreement, with supervision of the bidding process and the construction. The project will be conducted from March 2019 to June 2025.

Given the high population density and increasing power consumption in Dhaka, the capital of Bangladesh, its government plans to construct the first underground substation to stabilize the power supply and meet the increasing demand, which will contribute to economic development. In the project, TEPCO Power Grid and TEPSCO will assist DESCO in the underground substation’s design, contractor management, safety assessment, and risk reduction. In the future, DESCO plans to build commercial facilities atop on the underground substation, and it has also decided to introduce a gas-insulated transformer, which is a unique Japanese technology that will make the facility non-flammable.

[Japan] Marubeni and LO3 Energy Launched a Blockchain Pilot Project in Japan

Marubeni Corporation and LO3 Energy, a New York-based blockchain technology vendor, announced on February 20, 2019, that they have launched a blockchain pilot project in Japan. The project aims to evaluate the effectiveness of the technology when applied to the power sector, as well as better improving Marubeni’s understanding of how to provide its customers with additional offerings using the blockchain technology. LO3 Energy, founded in 2012 in New York, has had extensive experience in developing blockchain-based peer-to-peer (P2P) energy trading platforms in the United States, Europe, and Australia. Marubeni is Japan’s fifth largest trading company, with a strong electrical and industrial plant business. The global rapid transition of the power sector towards decarbonization, decentralization, and digitalization is expected to accelerate P2P energy trading among DERs (Distributed Energy Resources), which are owned and operated by end-users. Marubeni has decided to partner with LO3 Energy in order to be at the forefront of the market change.

In the project, LO3 Energy will use blockchain to create a virtual electric marketplace, helping Marubeni to promote P2P energy trading among its self-owned power generators and its customers/end-users. It will test the virtual energy transaction network through LO3 Energy’s platform, by installing blockchain-enabled meters at energy sources and customers’/end-users’ sites and facilities.

[Japan] NEDO Initiated a Floating Offshore Wind Power Generation System Demonstration Test Aimed at Reducing Generation Costs

On December 20, 2018, the New Energy and Industrial Technology Development Organization (NEDO) announced that it will begin a demonstration test for a Floating Offshore Wind Power Generation System, aiming to reduce the generation cost to approximately 20 yen / kWh (approximately $185 / MWh[1]) or less in 2030. The project will adopt advanced components, such as a single buoy turret mooring system, which will reduce the weight of the system and the cost of power generation. Several partners will join the project, including Toyota Tsusho, a trading company under Toyota Group, Glocal, a management consulting firm, Teraoka, a shipbuilding company that recently started a solar power installation business, the University of Tokyo, Kyushu University, and the National Institute of Maritime, Port, and Aviation Technology.

For the feasibility study of the project, NEDO will conduct research on basic designs that are suitable for the selected demonstration site, marine area survey, and preliminary consultation. The results of the feasibility study will be reviewed by outside experts. If the system is determined to be feasible and viable, NEDO will then build the generation system and will conduct a demonstration test for more than one year in actual sea areas to verify the system’s performance and cost. The project period is from FY2018 to FY2022. NEDO has been developing component technologies to lower the cost of floating systems since FY2016.

[1] Exchange rate as of January 14th, 2019.

[Japan] Toshiba Energy Systems & Solutions Will Launch an Integrated Control Service Using Storage Batteries with IoT Technology

Toshiba Energy Systems & Solutions Corporation (Toshiba ESS) announced on December 17, 2018, that it will launch a service that uses optimal control storage batteries with IoT for Virtual Power Plant (VPP), starting from January 1, 2019. The service was commissioned by TEPCO Energy Partner, an electricity retailer company operating under the TEPCO (Tokyo Electric Power Company) brand throughout mainland Japan.

Toshiba ESS will install 15kWh storage batteries at 11 elementary schools in Yokohama City and will control them and monitor their efficiency in order to manage demand response for the electric grid, while making sure there is sufficient electricity left to respond to any emergency situations. The program will use Toshiba’s lithium-ion rechargeable battery which is designed for high safety and long battery life.

Toshiba ESS, Yokohama City, and TEPCO EP have worked together since 2016 on this project, including designing the control technology for the storage batteries and conducting the VPP demonstration test.

Toshiba ESS aims to become a Cyber Physical System (CPS) technology company in the energy industry and plans to develop various distributed energy resources for the supply and demand balancing market in Japan, which is expected to open in 2021.

[Japan] Kansai Electric Power and K-Opticom Initiated a Smart City Project to Visualize People Flow in Kobe city, Hyōgo Prefecture

On December 18, 2018, Kansai Electric Power and K-Opticom, a telecommunications company under Kansai Electric Power, announced that they launched a project for the Visualization of People Flow in Sannomiya area, Kobe city in Hyōgo Prefecture. The project will use data collected from infrared sensors to visualize and map the movement of people throughout the city in real time.

In this project, data on people’s movement will be collected and measured with IoT, using infrared sensors installed at approximately 150 places in the area. The project adopts K-Opticom’s LPWA wireless technology (LoRa system), which can cover a wide area with low power consumption. Two base stations for the LPWA system will be installed . Kobe University will then conduct a people flow analysis using the collected data.

This is the largest-scale people flow analysis project in Japan to date in terms of covered geographic areas. It will be implemented from December 18, 2018 to March 31, 2019. The collected data is expected to be used for improving the safety and security of the city, such as detecting lost children and people in bad physical condition.

[Japan] Kansai Electric Power, Eliiy Power, and Sansha Electric Manufacturing Company Will Test Frequency Control Technology Using Battery Storage for Virtual Power Plant Applications

Kansai Electric Power, Eliiy Power, and Sansha Electric Manufacturing Company announced on December 17, 2018 that they will launch a demonstration project to test frequency control technology using battery storage for Virtual Power Plant (VPP) Demonstration applications.

The project will test a remote control system (called K-LIBRA) that was jointly developed by Kansai Electric Power and NEC, which can remotely control batteries. The tests will measure the response time and control accuracy of the system, in order to evaluate the batteries’ response performance when used to manage short-term load fluctuations. Sansha Electric Manufacturing Company’s industrial storage battery and Eliiy Power’s household battery will be used for this project. The project will be carried out from January 7 - 31, 2019.

This demonstration project will be the first Japanese project to examine a technology solution capable of remote controlling approximately 10,000 units of batteries simultaneously in seconds.

The VPP project was funded by Japan’s Ministry of Economy, Trade and Industry (METI) Agency for Natural Resources and Energy’s FY2018 Demonstration Project on Virtual Power Plant (VPP) Utilizing Demand Side Energy Resources. Kansai Electric Power will submit the results of the demonstration project to the Agency for Natural Resources and Energy by the end of FY 2018.

[Japan] Kansai Electric Power Acquired 20% of the equity of the construction of St. Joseph Energy Center in the U.S.

Kansai Electric Power announced on December 11, 2018, that KPIC USA, its wholly owned subsidiary, reached an agreement with Ares EIF Management to acquire 20% of the equity capital of the second-phase construction of St. Joseph Energy Center (SJEC) in the U.S. The deal will be the fourth power investment by Kansai Electric Power in the U.S. market and its first investment in the regulated electricity market.

The SJEC, located in Indiana State, is a proposed gas-fired combined-cycle power plant with a total output of approximately 710MW. Once completed, it will supply electricity to the MISO market. It is expected that SJEC’s construction will start in 2020 and that the SJEC will initiate commercial operations in 2023.

By leveraging its technology and expertise developed in the Japanese market, Kansai Electric Power has been seeking to expand its business overseas, particularly in the North American electricity market.