[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] METI and MLIT Held the First Meeting of the Public-Private Council on the Enhancement of Industrial Competitiveness for Offshore Wind Power Generation

On July 17, 2020, the Ministry of Economy, Trade, and Industry (METI) and the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) jointly held the first meeting of the Public-Private Council on the Enhancement of Industrial Competitiveness for Offshore Wind Power Generation. In the meeting, the Council members discussed the state of wind power generation utilization in Japan and the potential challenges for expanding offshore wind power generation in the mid- to long-term.

Japan aims to increase the total share of wind energy generation from the current level of approximately 0.7% to 1.7% by 2030 as part of Japan’s 5th Strategic Energy Plan.[1] Under the Act of Promoting Utilization of Sea Areas in Development of Power Generation Facilities Using Maritime Renewable Energy Resources, which was enacted in April 2019, METI and MLIT have been making progress in designating sea areas for wind energy projects to achieve this goal.[2]

METI and MLIT established the council to collaborate with industry members to advance the systematic and continuous introduction of offshore wind power generation. The council also seeks to enhance Japan’s industrial competitiveness, build up domestic industrial clusters, and develop the infrastructure environment for the wind power generation industry. The council members consist of Japanese utility companies, including Kyuden Mirai Energy (Headquarters: Fukuoka Prefecture), TEPCO Renewable Power (Headquarters: Tokyo), and other major companies in the manufacturing, construction, and financial sectors.

During the first meeting, the council underscored the importance of enhancing the industrial competitiveness of the offshore wind power sector and reducing costs in order to make offshore wind power one of the main energy sources in Japan. The key measure discussed at the council meeting was to increase the investment in wind power generation. Currently, the lack of certainty in the wind generation market outlook is prohibiting investors from actively engaging in the sector. The council is committed to continue the dialogue with industry members to identify areas for public private collaboration to reduce investment obstacles, and to strengthen infrastructure, R&D, human resources, and public engagement.[3]

[1] The 5th Strategic Energy Plan, which sets Japan's long-term energy policy towards 2050, was approved by the Cabinet on July 3, 2018.  It includes Japan’s plans to maintain coal-fired generation to support the nation’s stable energy supply while phasing out inefficient coal-fired power plants.
The English version of the 5th Strategic Energy Plan can be accessed from METI’s website: https://www.meti.go.jp/english/press/2018/pdf/0703_002c.pdf

[2] Act of Promoting Utilization of Sea Areas in Development of Power Generation Facilities Using Maritime Renewable Energy Resources aims to promote the utilization of wind power generation through measures such as the formulation of basic policies, designating maritime areas as targets of promotion projects, creating a certification system for plans related to the licensed use of such designated maritime areas.

[3] https://www.meti.go.jp/shingikai/energy_environment/yojo_furyoku/001.html

[Japan] Hokkaido Electric Power Network Selects Sumitomo Electric Industries’ Redox Flow Battery for Wind Power Generation

On July 14, 2020, Sumitomo Electric Industries (Headquarters: Osaka City, Sumitomo Electric) announced that its redox flow battery was selected for Hokkaido Electric Power Network’s (Headquarters: Sapporo City, Hokkaido Prefecture) wind energy grid interconnection expansion project. The project aims to connect fifteen wind power generation facilities, reaching a total capacity of 162MW.

In this project, Sumitomo Electric will install and maintain a redox flow battery with an installed capacity of 51MWh at Hokkaido Electric Power Network’s Minami-Hayakita Substation which is located in Yufutsu District, Hokkaido Prefecture. A redox flow battery is a type of battery storage that charges and discharges via the oxidation-reduction reactions (redox reactions) of metal ions in the electrolyte. Sumitomo Electric’s redox flow battery features a long life, high reliability, and durability to fire hazards.

The installation of Sumitomo Electric’s redox flow battery will begin in FY 2020 and is expected to be completed by the end of March 2022. The operational period is scheduled from April 2022 to March 2043. Prior to this installation, Hokkaido Electric Power Network has been conducting a large-scale demonstration project since 2015 using Sumitomo Electric’s redox flow battery at Minami-Hayakita Substation to test its operational reliability and safety. [1]

[1] https://sei.co.jp/company/press/2020/07/prs078.html

[Japan] Japan’s Agency for Natural Resources and Energy Held a Discussion About Phasing Out Inefficient Coal-Fired Power Plants

On July 3, 2020, the Ministry of Economy, Trade, and Industry (METI) announced its plan to develop specific measures for phasing out inefficient coal-fired power plants by 2030. The announcement was made by Hiroshi Kajiyama, the minister of METI, in a press conference.

Japan’s decision to phase out inefficient coal-fired power plants is described in the 5th Strategic Energy Plan[1] issued in 2018; however, no detailed implementation plans were developed thus far. Minister Kajiyama described the need to develop concrete steps towards phasing out inefficient coal-fired power plants and accelerating the implementation of renewable energy to achieve a decarbonized society while carefully balancing Japan’s energy mix with consideration of limited energy resources to ensure a stable energy supply. The minister said that he had ordered METI’s officials to start discussion to develop the phase out plans by the end of July 2020.

Following this announcement, on July 13, 2020, the Agency for Natural Resources and Energy’s Electricity and Gas Industry Committee held a meeting to discuss specific measures to phase out coal-fired power plants.  The discussion focused on addressing the following topics:

1)   Introduce new regulatory measures in order to phase out inefficient coal-fired power plants

2)   Create new mechanisms to promote the early retirement of inefficient coal-fired power plants while ensuring a stable energy supply

3)   Review the current utilization rules on transmission lines to implement measures to accelerate the expansion of renewable energy, while considering various specific regional conditions.

Currently, coal-fired power generation accounts for 32 percent of Japan’s energy mix and inefficient coal-fired generation accounts for 16 percent of the total. Japan plans to reduce the share of coal-fired power generation to 26 percent by FY 2030. Japan plans to continue supporting the long-term use of coal generation by promoting innovative technologies to enhance the efficiency of coal-fired power plants, including Integrated Coal Gasification Combined Cycle (IGCC), Integrated Coal Gasification Fuel Cell Combined Cycle (IGFC), and Carbon Capture Utilization and Storage (CCUS). [2] [3] [4]

[1] The 5th Strategic Energy Plan, which sets Japan's long-term energy policy towards 2050, was approved by the Cabinet on July 3, 2018.  It includes Japan’s plans to maintain coal-fired generation to support the nation’s stable energy supply while phasing out inefficient coal-fired power plants.

The English version of the 5th Strategic Energy Plan can be accessed from METI’s website: https://www.meti.go.jp/english/press/2018/pdf/0703_002c.pdf

[2] https://www.meti.go.jp/speeches/kaiken/2020/20200703001.html

[3] https://www.meti.go.jp/shingikai/enecho/denryoku_gas/denryoku_gas/pdf/026_03_00.pdf

[4] https://www.meti.go.jp/shingikai/enecho/denryoku_gas/denryoku_gas/026.html

[Japan] J-Power Consolidates its Thermal Power Generation and Service under J-POWER Generation Service

Tokyo-based Japanese power producer J-Power announced on June 25, 2020, that it will transfer the operation of its thermal power generation plants to JPEC (Headquarters: Tokyo).[1] JPEC is J-Power’s wholly owned subsidiary that provides construction and maintenance services for power generation equipment.[2] JEPC will be renamed J-POWER Generation Service to reflect this change.

Since 2004, J-Power and JPEC have shared responsibility of operations and maintenance (O&M) of thermal power plants. However, in response to the rising competition introduced by the deregulation of the electricity market, J-Power plans to streamline its businesses to improve efficiency and reduce the cost of O&M by consolidating O&M under J-POWER Generation Service. In the long term, J-Power plans to strengthen its investment in renewable energy and overseas business development.

Starting in August 2020, the O&M for seven of J-Power’s Thermal Power Plants will be managed by J-POWER Generation Service. J-Power will integrate its Thermal Power Generation Department and Thermal Power Construction Department into the Thermal Energy Department, which will be responsible for developing the company’s strategy for thermal generation and maintaining and improving the thermal generation technology. J-Power will continue to be responsible for fuel supply and electricity sales. [3]

[1] https://www.jpec.co.jp/company/index.html

[2] https://www.jpec.co.jp/service/index.html

[3] https://www.jpower.co.jp/news_release/2020/06/news200625_4.html

[Japan] JERA, ADEME Investment SAS, and IDEOL Agreed to Jointly Invest in the Development of Commercial Scale Floating Offshore Wind Projects

JERA (a joint venture between Tokyo Electric Power Fuel & Power (headquarters: Tokyo)  and Chubu Electric Power (Headquarters: Nagoya City, Aichi Prefecture)), 100% French state-owned infrastructure investment company ADEME Investment SAS (Headquarters: Angers City, France)[1], and the leading French floating offshore wind technology company IDEOL (Headquarters: La Ciotat, France) announced on June 22, 2020, that they have agreed to establish an investment vehicle that will finance the development and construction phase of several commercial-scale floating offshore wind projects around the world. This includes two upcoming wind farms in Scotland and France, which will use IDEOL’s patented Damping Pool technology. The three parties are in discussion to determine the details of the partnership, including the investment amount.

Offshore wind power generation technologies can generally be divided into  two types: fixed structures connected to the offshore foundations called “bottom-mounted foundations” and “floating-type” structures where the foundation is floating on the sea.[2] Floating-type offshore wind turbines, which can be installed even in deep water, have significant potential to help expand the use of renewable energy in the future. The three companies are therefore trying to better understand floating-type offshore wind power and accelerate its global development through this partnership.[3] [4]

[1] https://www.ademe.fr/en/about-ademe

[2] https://www.nedo.go.jp/news/press/AA5_100970.html

[3] https://www.jera.co.jp/information/20200622_508

[4] https://www.jera.co.jp/english/information/20200622_508

[Japan] NEDO and the Advanced Hydrogen Energy Chain Association for Technology Development Jointly Conducted the World’s First Global Hydrogen Supply Chain Demonstration Project

On June 25, 2020, New Energy and Industrial Technology Development Organization (NEDO, Headquarters: Tokyo) and the Advanced Hydrogen Energy Chain Association for Technology Development (AHEAD, Headquarters: Yokohama City, Kanagawa Prefecture)[1] announced that they have conducted the world's first global hydrogen supply chain demonstration project, which transports hydrogen from Brunei Darussalam to Japan. NEDO is Japan’s largest public R&D funding organization specialized in innovative energy technologies. AHEAD was established in 2017 by four Japanese companies: global chemical engineering company Chiyoda (Headquarters: Yokomaha City, Kanagawa Prefecture)[2], Japanese shipping company Nippon Yusen (Headquarters: Tokyo)[3], and two Japanese trading companies, Mitsui & Co (Headquarters: Tokyo)[4] and Mitsubishi (Headquarters: Tokyo).[5] AHEAD is an association that supports hydrogen research in order to accelerate the development of hydrogen supply chains.

The project uses the "organic chemical hydride method" to build the hydrogen supply chain. Methylcyclohexane (MCH) generated in Brunei is transported by sea to Japan. The MCH is then separated into hydrogen and toluene at a dehydrogenation plant located in Kawasaki City, Kanagawa Prefecture. The toluene is then sent back to Brunei’s hydrogeneration plant and processed to re-bond with hydrogen.

The first MCH transportation process was carried out in December 2019. The dehydrogenation plant in Kawasaki City began extracting hydrogen from MCH in April 2020 and has been supplying hydrogen to the gas turbine of the Mizue power plant owned by Toa Oil (Headquarters: Kawasaki City, Kanagawa Prefecture) since May 2020.[6] In June 2020, the project began transporting the toluene processed by the Kawasaki dehydrogenation plant to Brunei. NEDO and the AHEAD will operate the demonstration test until the end of 2020 to evaluate the performance of the hydrogenation/dehydrogenation plant equipment and identify any issues.

NEDO has contributed to the development of hydrogen technology since FY2015. Through this project, NEDO intends to establish a large-scale hydrogen utilization system that can transport hydrogen from overseas and use it for Japan’s hydrogen power generation.[7]

[1] https://www.ahead.or.jp/jp/organization.html

[2] https://www.chiyodacorp.com/jp/about/profile/

[3] https://www.nyk.com/profile/profile/

[4] https://www.mitsui.com/jp/ja/company/outline/profile/index.html

[5] https://www.mitsubishicorp.com/jp/ja/about/profile/

[6] https://www.toaoil.co.jp/company/location.html

[7] https://www.nedo.go.jp/news/press/AA5_101322.html

[Japan] Hokuriku Electric Power and JFE Engineering Seeks to Expand the Use of AI-based WinmuSe System to Optimize Dam Operation

On June 12, 2020, Hokuriku Electric Power (Rikuden, Headquarters: Toyama City, Toyama Prefecture) and JFE Engineering, an engineering company headquartered in Tokyo, announced that they had jointly developed an optimal operating system for dams using AI (Artificial Intelligence) technology, which will help increase hydroelectricity power plants’ generation. The system mainly utilizes the WinmuSe, an AI-based water inflow forecasting application developed by JFE Engineering.

The two companies have jointly demonstrated WinmuSe at Rikuden’s Asaida Dam, located in Takayama City, Gifu Prefecture, since FY 2017. Its forecasting function was successfully improved through advanced analysis of large amounts of data related to Asaida Dam’s amount of rainfall and water inflow in past years. The results of the demonstration project showed excellent performance, with a high level of accuracy in forecasting water inflow. The project also confirmed that the system could be expected to increase the generation of hydroelectricity power plants by approximately 5 GWh per year.

Based on the results, Rikuden and JFE Engineering plan to apply the AI-based optimal operating system to other dams in the entire Jinzu River Water System, aiming to maximize their power generation.[1]

[1] http://www.rikuden.co.jp/press/attach/20061201.pdf

[Japan] Japan Business Federation Launched the Challenge Zero Project

Amid concerns about climate change, the Japan Business Federation, also known as Keidanren, announced on June 8, 2020 that it had launched the Challenge Zero Project in order to accelerate the transition towards a low-carbon society. Keidanren is an economic organization that represents a membership comprised of 1,444 domestic companies, 109 nationwide industrial associations, and 47 of Japan’s regional economic organizations (as of April 1, 2020).

The Challenge Zero Project has been endorsed by over 130 participating companies and groups, ranging from energy companies and utilities to manufacturers, financial institutions, and retailers. Among them, some Japanese utilities and energy producers are part of the project: Tokyo Electric Power Company Holdings (TEPCO, Headquarters: Tokyo), Chubu Electric Power (Chuden, Headquarters: Nagoya City, Aichi Prefecture), Kansai Electric Power (KEPCO, Headquarters: Osaka City, Osaka Prefecture), Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Prefecture), Okinawa Electric Power (OEPC, Headquarters: Urasoe City, Okinawa Prefecture), and Electric Power Development Company (J-POWER, Headquarters: Tokyo).[1]

Under the Challenge Zero Project, the member companies and groups have set their own goals to tackle a total of 305 innovation challenges. Challenges are different for each member, such as developing CO2 utilization technology, improving the efficiency of reusing Electric Vehicles’ (EV) batteries, etc.[2] Keidaren and participating entities aim to contribute to CO2 emission reductions by addressing these challenges.[3] [4]

[1] https://www.challenge-zero.jp/jp/member/

[2] https://www.challenge-zero.jp/jp/casestudy/

[3] https://www.keidanren.or.jp/policy/2020/052.html

[4] https://www.challenge-zero.jp/jp/about/

[Japan] The Japanese Cabinet Approved the FY 2019 Annual Report on Energy (Japan’s Energy White Paper 2020)

On June 5, 2020, the Japanese Cabinet approved the Fiscal Year 2019 Annual Report on Energy, known as “Japan’s Energy White Paper 2020”, which was created by the Agency for Natural Resources and Energy (ANRE) under the Ministry of Economy, Trade and Industry (METI). In accordance with Article 11 of the Basic Act on Energy Policy (Act No. 71 of 2002), ANRE publishes and submits the white paper to the National Diet on an annual basis. It highlights the current energy trends in domestic and global markets, and provides a general overview of the major initiatives that were implemented in the previous fiscal year.

The FY 2019 Japan’s Energy White Paper emphasizes the following areas:

· The progress of the recovery and reconstruction in Fukushima Prefecture, such as supporting the victims of the nuclear accident, cleaning up contaminated water, and decommissioning of the Fukushima Daiichi Nuclear Power Plant

· Japan’s measures to strengthen the resilience of the energy infrastructure to the potential risks of damage by natural disasters, such as improving regional power networks

· Japan’s implementation of global warming countermeasures in accordance with the Paris Agreement

The White Paper also discusses the impact of COVID-19 on the global oil market and highlights the importance of ensuring a stable international crude oil market. In addition, it compares the current progress and situation of Japan’s CO2 emission reduction efforts to meet greenhouse gas reduction targets with the progress made by the European Union (EU) and other major countries, including the United Kingdom, the United States, France, and Germany. It notes that Japan ranked No. 1 in the G7 reduction rate of demand-based CO2 emissions from 2013 to 2015.[1] [2] [3] [4]

[1] https://www.meti.go.jp/press/2020/06/20200605002/20200605002-2.pdf

[2] https://www.oecd.org/sti/ind/carbondioxideemissionsembodiedininternationaltrade.htm

[3] https://www.meti.go.jp/press/2020/06/20200605002/20200605002.html

[4] https://www.meti.go.jp/english/press/2020/0605_001.html

[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] Toshiba Energy Systems & Solutions and Chubu Electric Power Announced the Construction of the Double-Flash Geothermal Power Plant in Gifu Prefecture

On May 13, 2020, Toshiba Energy Systems & Solutions (Headquarters: Kawasaki City, Kanagawa Prefecture) announced that Nakao Geothermal Power Generation Corporation (Nakao Geothermal, Headquarters: Takayama City, Gifu Prefecture) will build a double-flash geothermal power plant in Takayama City, Gifu Prefecture.[1] Nakao Geothermal was jointly established in 2013 by Toshiba Energy Systems & Solutions, a subsidiary of Toshiba (Headquarters: Tokyo)[2] that offers energy business products and services [3], and Cenergy, a subsidiary of Chubu Electric Power (Chuden, Headquarters: Nagoya City, Aichi Prefecture). Toshiba Energy Systems & Solutions owns 55 percent of shares of Nakao Geothermal, and Chuden owns 45 percent of share of it.

The construction of the Nakao Geothermal Power Plant is scheduled to begin in September 2020, and it is expected to begin commercial operations in late 2021. It is the first time for Toshiba and Chuden to cooperate to build a geothermal power plant. The maximum capacity of the power plant is expected to be 1,998 kW, and all of the generated electricity will be sold to Chubu Electric Power Grid (Chuden Power Grid, Headquarters: Nagoya City, Aichi Prefecture)[4] to supply approximately 4,000 households.

The plant will adopt the double-flash method, which is about 20% more efficient than the general single flash method. It will be the world’s smallest geothermal power plant using this method. The Okuhida Onsengo Nakao district where the plant will be constructed is famous for its hot springs and the hot temperature of its steam, which makes it suitable for geothermal generation.[5]

[1] https://www.toshiba-energy.com/info/info2020_0513.htm

[2] https://www.toshiba.co.jp/about/profi_j.htm

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

[4] https://powergrid.chuden.co.jp/corporate/company/com_outline/

[5] https://www.toshiba-energy.com/info/info2020_0513.htm

[Japan] Tokyo Electric Power Company Holdings, NTT, Hitachi, and Ricoh Established a Consortium to Promote the Utilization of Electric Vehicles

On May 11, 2020, Tokyo Electric Power Company Holdings (TEPCO, Headquarters: Tokyo), Nippon Telegraph and Telephone (NTT, Headquarters: Tokyo)[1], Hitachi (Headquarters: Tokyo)[2], and Ricoh (Headquarters: Tokyo) announced that they have established the “Electric Vehicle Utilization Consortium” to promote the use of Electric Vehicles (EV) in the commercial sector.

TEPCO’s partners come from a wide range of industries: NTT is a Japanese telecommunication company, Hitachi is an electric manufacturing company that offers a range of electronics and industrial equipment, and Ricoh is an imaging and electronics company that produces and distributes printing equipment. The consortium is endorsed by a total of forty companies, ranging from the automotive industry to electric utilities, such as Toyota Motor (Toyota, Headquarters: Toyota City), Toshiba (Headquarters: Tokyo)[3], and Kyushu Electric Power (Kyuden, Headquarters: Fukuoka City, Fukuoka Prefecture[4]).[5]

Amid concerns about climate change, companies and organizations are required to take actions to realize a decarbonized society. In Japan, the transportation sector accounts for approximately 20% of Japan’s CO2 emissions, however, EVs are expected to contribute to CO2 emission reductions. EVs can also be utilized to strengthen the resilience of electricity infrastructure during a disaster, when they are used for battery storage.

With the launch of the Electric Vehicle Utilization Consortium, the forty members will work together to promote the implementation of EVs in the commercial sector through standardization, information sharing, and resolving implementation barriers, in order to achieve the United Nations’ (UN) Sustainable Development Goals (SDGs).[6]

[1] https://www.ntt.co.jp/about/gaiyou.html

[2] https://www.hitachi.com/corporate/about/hitachi/index.html

[3] https://www.toshiba.co.jp/about/profi_j.htm

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

[5] https://www.tepco.co.jp/press/release/2020/pdf2/200511j0101.pdf

[6] https://www.tepco.co.jp/press/release/2020/1541025_8710.html

[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.

＜Profiles of Project Partners＞

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

[1] https://new.siemens.com/global/en/general/legal.html

[2] https://www.kepco.co.jp/corporate/pr/2020/pdf/0518_2j_01.pdf

[3] https://www.itochu.co.jp/en/about/profile/index.html

[4] https://www.tyrenergy.com/about/

[5] https://www.kepco.co.jp/corporate/pr/2020/0518_2j.html

[6] https://www.kepco.co.jp/english/corporate/pr/2020/pdf/may18_2.pdf

[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] Hokkaido Electric Power Released the Hokuden Group Management Vision 2030

On April 30, 2020, Hokkaido Electric Power (HEPCO, Headquarters: Sapporo City, Hokkaido) released its “Hokuden Group Management Vision 2030.” HEPCO transferred its Power Transmission & Distribution Division to the newly established “Hokkaido Electric Power Network " to legally separate the transmission and distribution divisions on April 1, 2020. The business split was implemented to comply with the Electricity Business Law Amendment Bill enacted in June 2015 (Act No. 47 of 2015). This is a major turning point because even after the split, both companies will still collaborate to supply electricity. The Management Vision discusses HEPCO’s plans on how the two companies will collaborate to provide stable electricity and its business plans in response to the changes in the business environment, including intensifying competition, advancements in technology, climate change issues, and an aging society.

The Management Vision 2030 sets two phases before and after the restart of HEPCO’s Tomari Nuclear Power Plant. The target profit of phase 1 will be 23 billion yen (approximately $215 million) and phase 2 will be 45 billion yen (approximately $422 million) [1]. HEPCO aims for the early restart of the Tomari Nuclear Power Plant to achieve a more balanced generation mix in terms of S+3E (Safety + Energy Security, Economic Efficiency, and Environment). HEPCO’s goal is to reduce CO2 emissions by half or more by FY2030, which is equivalent to 10 million tons or more/year (FY2013 baseline), through the restart of Tomari Nuclear Power Plant and an increase in renewable energy, as well as the use of Liquefied natural gas (LNG) fired thermal power. HEPCO’s three reactors at Tomari Nuclear Power Plant have been shut down since the Fukushima accident, waiting for the regulatory approval for the restart.

HEPCO will also facilitate its business growth through expanding its business outside of the Hokkaido area and overseas, and by entering into new businesses that utilize digital technologies, such as IoT and drones in a wide range of sectors, including transportation and real estate. HEPCO will also strengthen its resiliency against natural disasters. The newly established Hokkaido Electric Power Network will play a critical role in ensuring the secure and stable supply of electricity. [2] [3]

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

[2] https://www.hepco.co.jp/info/2020/1250852_1844.html

[3] https://wwwc.hepco.co.jp/hepcowwwsite/info/2020/__icsFiles/afieldfile/2020/04/30/management_vision_2030.pdf

[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] TEPCO Power Grid, Hokuriku Power Electric, Osaka Gas, and Saibu Gas Entered into a Capital and Business Alliance with Japan Infrastructure Waymark

On April 20, 2020, Japan Infrastructure Waymark (JIW, Headquarters: Osaka), which is wholly owned by Nippon Telegraph And Telephone West (NTT West, Headquarters: Osaka)[1] and provides infrastructure inspection solutions using drones, announced that it had entered into a capital and business alliance with four utility companies, TEPCO Power Grid (Headquarters: Tokyo), Hokuriku Power Electric (Headquarters: Toyama Prefecture), Osaka Gas (Headquarters: Osaka)[2], and Saibu Gas (Headquarters: Saitama Prefecture)[3]. In addition to the four utility companies, an IT solution provider, NTT Data (Headquarters: Tokyo)[4]; a Tokyo-based venture capital firm, Drone Fund[5]; and an engineering company, Toyo Engineering (Headquarters: Chiba Prefecture)[6] also joined the alliance.  

Aging infrastructure and labor shortages are making it increasingly challenging for utility companies to efficiently inspect a large amount of infrastructure, such as power plants, transmission towers, and electric poles. The four utility companies and Toyo Engineering partnered with JIW to improve the efficiency of infrastructure maintenance work by developing Artificial Intelligence (AI) and drone solutions. The collaboration will develop AI and drone technologies for monitoring and inspection, ensuring more sophisticated, safe, and high-quality maintenance work. The alliance also facilitates sharing inspection expertise and enhanced AI solutions based on the collected data. [7] [8] [9] [10]

[1] https://www.ntt-west.co.jp/corporate/about/profile.html

[2] https://www.osakagas.co.jp/en/aboutus/corporate_profile/

[3] https://seibugas.com/wp/company_group/%E4%BC%9A%E7%A4%BE%E6%A6%82%E8%A6%81/

[4] https://www.nttdata.com/global/en/about-us/company-profile

[5] https://dronefund.vc/en/about/

[6] https://www.toyo-eng.com/jp/ja/company/outline/

[7] https://www.jiw.co.jp/20200420-infra-tieup/

[8] http://www.rikuden.co.jp/press/attach/200420001.pdf 

[9] https://www.osakagas.co.jp/company/press/pr2020/1286672_43661.html

[10] https://www.tepco.co.jp/pg/company/press-information/press/2020/1539425_8615.html