Kansai Electric Power Group Overview

Business Segments

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Energy Business
Overview

Koji Inada
Director
Representative Executive Officer,
Vice President

Business environment

In an effort to keep up with changes in society, we, as Japan’s
leading company focusing on zero-carbon energy, are making
the most of renewable energy for use as main power source,
maximizing the use of nuclear power and opting for zerocarbon power sources, including zero-carbon thermal power
generation and zero-carbon hydrogen utilization. At the sametime, we are committed to mobilizing our resources to help
customers and society realize zero-carbon operations byproposing and providing optimal solutions, examining anddemonstrating approaches to create a hydrogen-driven society.
In addition to establishing a system of seven nuclear reactors
with a primary focus on safe and secure operation, we will
create a competitive power source portfolio, rationalize fuelprocurement and supply-demand balancing, and promote theintroduction of DX-based monitoring and maintenance. All ofthese are designed to improve the cost structure reform andachieve targets set in the Medium-term Management Plan.
New energy and environmental markets, meanwhile, will be
developed and new values will be provided through various
solutions to further boost profits.
Medium-term Management Plan Targets
Ordinary income

More than
130 billion yen

Opportunities●●

Create new business opportunities in new and peripheral
areas in energy and environmental businesses by acceleratingsocial change: the 3D + D* movement.
Acceleration in decarbonization and improvements ingovernment policies and institutions• Sustainable use of nuclear power generation is specified in
the cabinet-approved Basic Policy for the Realization of GX• Introduction of an auction system for long-term
decarbonized power sources* 3D+D: Decarbonization, Decentralization, Digitalization plus Denka electrification
Risks●

While fuel prices increased sharply after the beginning of theconflict in Ukraine, high market prices are currently reaching aplateau, appearing to trend downward, with market volatility
increasing.

LNG market trends($/MMBtu)

JKM

JLC

60
45
30

Surplus15-27.4 billion yen

2021-2023

2025

2022

ROA

Kansai Electric Power Group Integrated Report 2023

2021 result

2022 result

1.23%-0.04%

0

4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 (Month)
2021
2022
2023

Notes:
JKM: Japan Korea Marker. Platts JKM assessment spot price for LNG referenced in
Northeast Asia.
JLC: Japan LNG Cocktail. Japan’s average LNG import price.

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Kansai Electric Power Group Overview

Business Segments

Value Creation Story

Medium-term Management Plan

Foundation to Support Value Creation

Financial and Corporate Information

Energy BusinessBusiness environment

Business strategies

Crude oil market trends($/bbl)Directions to
take

140
112
84

❶ Promote thorough cost structure reform to restore profitability in the energy business.
❷ Work toward realizing “zero-carbon power sources” including zero-carbon thermal power, nuclear power
and renewable energy, as well as verifying and demonstrating hydrogen energy utilization.
❸ Provide new value through various solutions to increase profitability, while promoting electrification or
Denka.

5-year Efforts

56
28
0

Business Overview

1 Restoration of profitability
4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 (Month)

2021

2022

2023

Cost reduction• Build a competitive power source portfolio (rationalization of
low-operating power sources).
• Optimize power source operations including fuel andelectricity market transactions, and minimize procurement
costs.
• Promote introduction of a digital technology-based
surveillance and maintenance system.
2 Zero-carbon power sources/hydrogen
Nuclear power• Ensure operation of all seven reactors in our nuclear power
plants in a sophisticated manner with safe and secure
operations as a basic premise.
• Conduct technical studies of next-generation successor
models with an eye on replacement, as well as surveying
HTGRs and SMRs.
• Promote the nuclear fuel cycle.
Renewable energy• Work on new development projects with a focus on offshore
wind power.
• Improve existing hydropower plants.
Thermal power• Conduct technical studies and cooperate on zero-carbon fuel(hydrogen/ammonia power generation) co-firing and CCUS,
etc. in the “carbon recycling technology hub.”Kansai Electric Power Group Integrated Report 2023

Hydrogen• Conduct technical studies and demonstrations for building ahydrogen supply chain in the “hydrogen utilization
technology hub” and other purposes.
3 Solutions
Provide new value to meet diversifying customer needs for
new lifestyles, zero-carbon emissions, improved resilience, etc.
Household customers• Provide services combining energy with electric appliances,storage batteries, etc. and platform services beyond energy.
Corporate customers• Provide total support to on-site renewable energy powersources, zero-carbon menus, etc. aiming to achieve zerocarbon.
Communities/e-mobility• Provide community energy management services to improve
resilience.
• Provide package services related to electric mobility.

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Kansai Electric Power Group Overview

Business Segments

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Energy BusinessInitiatives in fiscal 2022

2 Zero-carbon power sources/hydrogen

1 Restoration of profitability■ Approaches to nuclear power generation■ Rigorous cost structure reforms

Each division is working on a variety of measures, including
cutting down overhead and maintenance costs, to improve
profits by about 90 billion yen in fiscal 2025.

Concrete measures
Streamlining facility inspection procedures using
under-water drones
Conventional inspections, where the submerged parts ofhydropower dam discharge facilities (spillway gate wire ropes)
were visually inspected by divers, are currently performed
using under-water drones; inspection procedures have beenstreamlined, resulting in reduced inspection costs.
Meanwhile, our digital technology, including the use of
these drones, is shared with others through our groupcompanies, contributing to safe and efficient maintenance/
management of infrastructure installation.

Streamlining monitoring inspections using robots andAIA system for monitoring thermal power generation facilities
has been built with AI technology, using robots and sensors.
We have confirmed that the system can detect oil leakage
and abnormal heat/sound from devices at the same or higher
levels than by human inspectors in real time. We aim tofurther improve productivity with this human-digital hybrid
system.

Kansai Electric Power Group Integrated Report 2023

Establishing a system of seven nuclear reactors andcontinuing safe and secure operation

Examples of voluntary safety improvement measures infiscal 2022:
An external power failure detection system voluntarily
installed is in operation to deal with accidents similar to thesingle phase failure (electrical accident) that occurred in the
US.
●

Maximizing utilization, with priority given to safety

Achieving over 40 years of operation

As we are committed to realizing green transformation (GX) toachieve carbon neutrality by 2050, we will maximize the useof nuclear power generation and balance the 3Es (Energy
security, Economy and Environmental conservation;
decarbonization), prioritizing safety.
With the share of nuclear power in the power generation
mix maintained at certain levels, we will continue tocontribute to preserving Japan’s technology and humanresources for nuclear safety.
At the same time, we will proactively engage incommunication with the public, including communities near
the plant sites, an indispensable measure for public relationsin promoting understanding of power plant operations.

In applying for an operation period extension for 40 years
from the starting month, in addition to special inspections
carried out for reactor vessels and other equipment, we havecarried out technical evaluations of degradation from age andconfirmed that the durability and safety of important facilities
could be assured even over an operation period of 60 years.
Mihama Nuclear Power Station Unit 3 restarted in 2021,
complying with new regulatory requirements. It is the first
40-year-old reactor in Japan to be restarted. Takahama
Nuclear Power Station Unit 1 was also restarted in August
2023, to be followed by Unit 2 in September of the same year
(scheduled as of August 31, 2023). Takahama Nuclear Power
Stations Units 3 and 4, meanwhile, underwent special
inspections required for exceeding 40 years of operation, andin April 2023 we applied for an operation period extension for
60 years.

Concrete measures
Promotion of safety improvement measures
Large-scale safety improvement work has been completed tocomply with new regulatory requirements set in accordancewith lessons learned from the accident at the Fukushima
Daiichi Nuclear Power Station; nuclear power plants proven to
be safe are already in operation.
In addition to complying with the new regulatory
requirements, self-imposed safety measures are being
practiced.

Takahama Nuclear Power
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Kansai Electric Power Group Overview

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Medium-term Management Plan

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Financial and Corporate Information

Energy Business

Interim storage facilities
Spent fuels are stored in a spent fuel pool inside power
stations for a certain period of time and then transported to a
reprocessing plant. In case the pool is filled to capacity, thepower station cannot be operated. For this reason, spent fuels
have to be taken out in a planned manner. Installation of aninterim storage facility, in which spent fuels are temporarily
stored, enables the stable operation of power plants into the
future. With the “Plan to promote measures for spent fuel” set
up in 2015, we are working on selecting the candidate sites forinterim storage facilities outside Fukui Prefecture, to be
finalized by the end of 2023 for planned commencement
around 2030.

Communicating with the public, including
communities near the plants
Our communication program includes visiting residents incommunities near the plants, offering tours in-person andonline, holding external events, and participating inpresentation meetings.

Addressing challenges with replacement in mind

Review of options such as next-generation light-water
reactors, high-temperature gas-cooled reactors and SMRs*
Maintaining the share of nuclear power in the power
generation mix at certain levels is key to creating a zero-carbon
society, and inevitably involves new installation, expansion,and replacement. We cooperate with plant manufacturers indesigning next-generation light-water reactors with improved
safety and efficiency in preparation for future replacement
while reviewing possible options such as high-temperature
gas-cooled reactors and SMRs, monitoring the latest
development trends at home and abroad.

* Small Modular Reactors
Kansai Electric Power Group Integrated Report 2023

Concrete measures

Initiatives prioritizing safety

To prevent the lessons of the Mihama Nuclear Power
Station Unit 3 accident from fading away
On August 9, 2004, an accident involving the rupture ofsecondary system piping occurred at Mihama Nuclear Power
Station Unit 3. Based on the President’s Declaration “Ensuringsafety is my mission, and the mission of the Company,” wehave strictly implemented recurrence-prevention measures,with a firm determination that we shall never cause such
accidents. The Nuclear Power Division has established Five
Basic Principles as preventive measures that form part of ourquality policy concerning the operation of nuclear powerbusinesses with safety as the top priority. These measures arerevised as necessary for safety improvement purposes. Making
every August 9th our “Safety Vow Day,” every employee
observes a moment of silence. We are working to cultivate asafety culture in order to implement business managementwith safety as the top priority and prevent the lessons of theMihama Nuclear Power Station Unit 3 accident from fading.

Establishment of a company proclamation:
Commitment to Enhancing Nuclear Safety
In response to the accident at the Tokyo Electric Power
Fukushima Daiichi Nuclear Power Station, we established our
Commitment to Enhancing Nuclear Safety, which clearly states
our idea about nuclear power safety, as a company
proclamation, one of our most important company rules. This
company proclamation underlines our determination to
constantly improve safety in nuclear power generation, whereby
all executives and employees fully understand the characteristics
and risks of nuclear power generation and always remindthemselves of the potential magnitude of an accident, with the
President playing a leading role in making company-wide efforts
to protect local communities, society and environment.

Learning lessons from the accident at Mihama Nuclear Power
Station Unit 3, we place a premium on nuclear safety.
Specifically, the accident at the Tokyo Electric Power
Fukushima Daiichi Nuclear Power Station made us aware that
our understanding and preparedness for risks unique tonuclear power generation were not necessarily sufficient. We,
therefore, established a roadmap to enhance practicing
voluntary and continued measures to improve safety innuclear power generation, with relevant efforts underway.

Boosting the accident response capacity
Comprehensive emergency response drills are conducted at
all nuclear power plants as a precaution in the event of a
nuclear disaster. In preparation for severe accidents beyond
design basis, involving serious cases such as injuries during
accident response, efforts are also underway to further
improve accident response capacity. These specifically include
unscripted drills for participants and quick, appropriate
restoration activities based on continuous improvements
made by previous drills, all designed to prevent accidents
from expanding. At the same time, we are working with five
power companies* and affiliates in West Japan to better deal
with nuclear disasters.

* Hokuriku Electric Power Company, our Company, the Chugoku Electric Power Co.,
Inc., Shikoku Electric Power Co., Inc., and Kyushu Electric Power Co., Inc.

Examples of drills:
We participated in the Nuclear Energy Disaster Prevention
Drill held by the national government, where programs fortask force management, accident control, evacuation ofcivilians, and cooperation with relevant institutions are
performed to respond to potential power failures caused byearthquakes.
“Stress training” programs were conducted for plant task force
●

●

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Kansai Electric Power Group Overview

Business Segments

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Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Energy Businessmembers to help them handle severe accidents where avariety of stressful situations occur simultaneously or insuccession.

Reliable decommissioning processes

Decommissioning status of Mihama Nuclear Power
Station Units 1 and 2 and Ohi Nuclear Power Station
Units 1 and 2
The Company plans to conduct decommissioning over four
major stages taking a total of about 30 years in accordancewith nationwide coordination and fund management by the
Nuclear Reprocessing Organization of Japan*. Currently, stage
2 (dismantling of facilities peripheral to reactors) is underway
at Mihama Nuclear Power Station Units 1 and 2, and stage 1(dismantling of equipment in the turbine building andmonitoring of residual radioactivity) is underway at Ohi
Nuclear Power Station Units 1 and 2. Appropriate measures
are in place for decommissioning, with the highest priority
given to safety.

* To be renamed on April 1, 2024.

■ Approaches to renewable energy

example, we focus on increasing hydropower output anddeveloping solar power, onshore wind power, offshore wind
power, biomass power, geothermal power, and hydropower
plants, and the total capacity of which stands at about 3.83
GW as of the end of March 2023. We will continue to operate
the existing power sources and develop new power sources
to help customers and society achieve zero carbon.
●●

Biomass:
Fukushima Iwaki Biomass Power Plant

Concrete measures
Development status in Japan in fiscal 2022●●

Further developing and leveraging renewable energy
Leading Japan in zero-carbon energy production, our Groupis committed to proactively developing renewable energy
based on its improved development promotion system,
focusing on offshore wind power generation, which has
great development potential. Through investment of a total
1 trillion yen in domestic projects, we aim to develop 5 GW
scale of new development and to achieve 9 GW scale ofcumulative capacity by 2040. On the domestic front, for

Kansai Electric Power Group Integrated Report 2023

Solar power:
Banshu Mega Solar Power Plant●●

In April, 2022, the Group commenced commercial operationof the Fukushima Iwaki Biomass Power Plant, which uses
biomass fuels.
Together with Mitsubishi HC Capital Energy Inc., weparticipated in a solar power project in Nishimuro-gun,
Wakayama Prefecture.
A consortium consisting of the Company, INPEX Corporation,
TODA Corporation, ENEOS Corporation, Osaka Gas Co., Ltd.,and Chubu Electric Power Co., Inc. was certified for the firsttime in Japan for public tender of exclusive occupancy and use
for the offshore wind power plant to be constructed in themarine renewable energy power generation facility promotion
zone off the coast of Goto City, Nagasaki Prefecture.
The Company, Marubeni Corporation, Obayashi Corporation,

Tohoku Electric Power Co., Inc., Cosmo Eco Power Co., Ltd.,
Chubu Electric Power Co., Inc., The Akita Bank, Ltd., OhmoriCo., Ltd., Sawakigumi Co., Ltd., Kyowa Oil Co., Ltd., Kato
Construction Co., Ltd., Kanpu Co., Ltd., and Sankyo Co., Ltd.
jointly commenced commercial operations at the Noshiro
Offshore Wind Farm in December 2022 and the Akita
Offshore Wind Farm in January 2023.
Banshu Mega Solar Power Plant, jointly funded by theCompany and ENEOS Corporation, started commercial
operation in January 2023.
In February 2023, the Company started a business providing
electricity along with environmental value by developing
solar power generation technology for Panasonic Operational
Excellence Co., Ltd. and Hydro Edge, one of our groupcompanies, based on a corporate PPA.

Launching offshore wind power projects in Akita Portand Noshiro Port
We have been working on Japan’s first project for large-scalecommercial offshore wind power plants in Akita Port andNoshiro Port, both in Akita Prefecture, through the special
purpose corporation Akita Offshore Wind Corporation(AOW) and in cooperation with Marubeni Corporation,
Obayashi Corporation, Tohoku Electric Power Co., Inc.,
Cosmo Eco Power Co., Ltd., Chubu Electric Power Co., Inc.,
The Akita Bank, Ltd., Ohmori Co., Ltd., Sawakigumi Co., Ltd.,
Kato Construction Co., Ltd., Kanpu Co., Ltd., Kyowa Oil Co.,
Ltd., and Sankyo Co., Ltd.
The Akita Port Offshore Wind Farm and Noshiro Port
Offshore Wind Farm are operating as scheduled; the former
started commercial operation on January 31, 2023, and thelatter on December 22, 2022, both based on the renewableenergy feed-in tariff scheme. AOW’s offshore wind power
generation is now in full swing, with Akita Port Offshore

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Energy BusinessWind Farm in operation. AOW will control the two wind farms
over the next 20 years, utilizing an operation and maintenancesystem based at Noshiro Port.

Concrete measures
Power plants under refurbishment (FY 2022)
Kurobegawa No. 2 Power Station Unit 3
Before refurbishment 73.6 MW
After refurbishment: 74.7 MW (to be completed in September
2023)
Kasagi Power Station Unit 1
Before refurbishment: 41.7 MW
After refurbishment: 50.8 MW (to be completed in October
2023)
●

●

Left: Akita Port Offshore Wind Farm Right: Noshiro Port Offshore Wind Farm
(Source: Akita Offshore Wind Corporation)

Refurbishment of existing hydropower facilities
Hydropower generation, which has a history of over 100 years,
has been providing clean energy in a safe and stable manner
while co-existing and building mutual trust with local
communities. Leveraging our accumulated expertise inhydropower, we conduct timely maintenance to extend theservice life of facilities, thereby streamlining overall operations.
Refurbishment, for example, is planned for aging power
generation facilities (replacement of water turbine generators)
to further extend the service life, with modern equipment anddesign technology expected to improve their power
generation efficiencies. We will systematically refurbish
existing hydropower facilities, as hydropower is a key powersource that contributes to creating a decarbonized society.

Beforerefurbishment

After
refurbishment■ Initiatives of the thermal power division
Challenge for realizing zero-carbon thermal power
generation system
We are committed to working on various initiatives to realize
the Zero Carbon Vision 2050, specifically by using zero-carbon
fuels (hydrogen for thermal power generation, etc.) andintroducing CCUS technology.

Concrete measures
Acquiring knowledge on the introduction of hydrogen
power generation
Green Innovation Fund Project in the Himeji area
We have been working on feasibility studies since theadoption of the Green Innovation Fund Project*1—Large-scale
Hydrogen Supply Chain Development, which was offered by
NEDO*2 in August 2021. Going forward, after design andmanufacture of the system, we will conduct demonstration of
power generation by co-firing of hydrogen at the gas turbines
installed at the Himeji No. 2 Power Station and aim to establish
operational techniques that can be used for social
implementation of hydrogen power generation.
Demonstration system process flow
Natural gas
Hydrogen gas carried in bytrailers, etc.
Hydrogengas cylinder

Hydrogengas pressure
control valveＧ
Gas turbines

On-site hydrogen production
using water electrolysis devices*1	The 2 trillion yen Green Innovation Fund, set up by the government for NEDO,

aims to encourage innovation among companies to achieve carbon neutrality by
2050, subsidizing companies for up to 10 years.
*2	New Energy and Industrial Technology Development Organization

Kansai Electric Power Group Integrated Report 2023

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Energy Business

Acquiring knowledge on the introduction of CCUS
CO2 capture technology research
We are supporting NEDO’s project at our Maizuru Power
Station, where solid sorbent system CO2 capture technology
is being tested for treatment of coal-fired emissions*1. The
commissioning run started in fiscal 2022 at testing facilities,
with full-scale demonstrations scheduled in the second half offiscal 2023. The solid sorbent system is potentially a great deal
more energy efficient than its conventional counterparts in
capturing CO2 and is therefore considered promising nextgeneration capture technology.
Demonstrating CO2 mass transport
We are supporting another project from NEDO, also at our
Maizuru Power Station, where research, development, anddemonstrations are underway for CO2 mass transport*2.
Specifically, the project, which involves CO2 liquefaction at the
shipping base, includes 1) R&D related to liquefied CO2 marinetransport technology, 2) demonstrations of 90,000 tonne scale
CO2 marine transport, and 3) marine transport feasibility
studies for CCUS purposes. CO2 marine transport
demonstrations are scheduled to start in fiscal 2024.

Using biomass at existing thermal power plants

Aioi Bioenergy in full-scale operation
We established Aioi Bioenergy Corporation, a joint venturewith Mitsubishi Corporation Clean Energy Ltd., and started
construction work at Aioi Power Station Unit 2 in Aioi City,
Hyogo Prefecture in February 2022 to switch the fuel fromheavy/crude oil to woody biomass and its full-scale operation
started in March 2023. The fuel switch resulted in an output of
200,000 kW, one of the largest biomass exclusive firing
thermal power generation capacities in Japan.

Electrostatic precipitator(converted)[Electric ⇒ Bag filter]

Biomass silo

Pulverizer,
Bunker, PAF*

Conveyor facilities*1	Development of carbon recycling/next-generation thermal power generation

technology / Research and development of CO2 capture technology / Researchon application of advanced CO2 solid sorbents to treatment of coal-fired
emissions*2	CCUS R&D and demonstration project / Large-scale CCUS demonstration in
Tomakomai / Demonstration of CO2 transport / Technological development anddemonstration of CO2 marine transport

Boiler Unit 2(converted)[Burner, etc.]

Berth (converted)* A ventilator that feeds pulverized fuel to burners

Securing procurement of fuelOur ongoing efforts include securing procurement of fuel,improving flexibility in responding to fluctuations in power
demand, and further improving the economic efficiency ofthe operations.
Specifically, our efforts involve diversifying suppliers andpricing systems, and taking part in the LNG value chain fromproduction to receiving of LNG, including upstream (interest
acquisition) and midstream (transportation, etc.) operations,with various business activities underway.
Volatility is increasing in the global fuel market due tostrained international relations in the wake of the Ukraine
conflict. We will thus continue to focus on international affairs
and fuel market trends to secure fuel in a stable and costeffective manner.

Focusing on spot trading for flexible LNG procurementand distribution
We are building information gathering capability andexpertise on flexible fuel trading in Singapore, the LNG
hub of the Asia Pacific region, to accommodatechanges in power demand, etc.
As the LNG market is expanding in sync with
globalization, we have relocated our fuel trading hub
from Japan to Singapore, extending our reach into the
Atlantic region
Atlantic market
to improve andshore up LNG
procurement
Tapping new regions
and distribution
Pacific market
resources.
SingaporeKansai Electric Power Group Integrated Report 2023

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Business Segments■

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Energy BusinessApproaches to hydrogen energy
utilization
Toward the realization of a hydrogen-driven
society

Hydrogen does not emit CO2 when burned andcan be produced from renewable energy, etc. forstorage and transportation, a characteristic ideal
for applications such as power generation,industrial production, and mobility. We are thus
working on various research topics, including thehydrogen upstream/downstream supply chain(from production to transportation, storage, use as
power generation fuel, and distribution) andhydrogen carriers (liquefied hydrogen, ammonia,etc.). We will utilize policy support planned by thegovernment for hydrogen commercialization tocreate a hydrogen supply chain by around 2030,
where hydrogen is imported for storage atdomestic facilities (about 100,000 tonnes as astarter). We are aiming for a 30% share of thedomestic hydrogen market in 2050.
Accordingly, we will pursue every possiblemeans and make further efforts into the future to
realize a hydrogen society, including adoption ofadvanced technology and cooperation withvarious partners to promote hydrogen use incommunities and society at large.

Concrete measures
We are broadly engaged in technical research and public relations activities to realize a hydrogen-driven society, participating in various projects
both on the supply and demand side.
Supply side

Demand side
Hydrogen power generation

Hydrogen procurement(liquefied hydrogen, ammonia, etc.)

Tank

Existing thermal power plant

Overseas procurement
Implementation of a Japan-Australia Project Feasibility Study
for the Creation of a Large-Scale Green Liquefied Hydrogen
Supply Chain(subsidized by the Ministry of Economy, Trade and Industry
in FY 2021)
Signing of a Memorandum of Understanding forcollaboration with Shell and Kawasaki Heavy Industries

Industry
Studies on designing and developing aviable business model of the hydrogenco-generation system*(NEDO research consignment project in
FY 2021 and FY 2022)

H2(Including NH3)

*A system where gas turbines produce andsupply electricity and heat.

Feasibility Study on Establishing a Clean Fuel Ammonia
Supply Chain from Australia to Japan(joint research program with JOGMEC in FY 2021 and FY 2022)

Technical research

Methane

Review of the introduction of ammonia
floating storage regasification units(FSRU) to promote the use of ammonia
Investment in green funds, etc.

H2

Nuclear power plants,
solar power plants, etc.

Public relations activities

CO2

O2

Hydrogen production(through water electrolysis, etc.)

CO separation
and recovery

Carbon recycling(methanation)

Domestic production
Research on hydrogen production and utilization in
the Awaji area, incorporating grid storage batteries(NEDO research consignment project in FY 2022)
Research on hydrogen production and utilization in
Oguni Town, Kumamoto Prefecture, using unutilized
geothermal energy(NEDO research consignment project in FY 2022)

Kansai Electric Power Group Integrated Report 2023

Gasifiers,
dehydrogenation facilities

Demonstration of power generation
by hydrogen at existing thermal
power plant(Green Innovation Fund Project fromFY 2021)

Japan Hydrogen Association (JH2A)
Participation in Kobe/Kansai Hydrogen
Utilization Council

Transportation

H2

Demonstration project to develop acommercial ship propelled by fuel cells
including development of energy
distribution systems(subsidized by NEDO from FY 2021)

NEDO: New Energy and Industrial Technology Development Organization
JOGMEC: Japan Organization for Metals and Energy Security

80Kansai Electric Power Group Overview

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Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Energy Business

Overseas Energy Business
Overview
We are participating in a total of 22 projects in the domainsof power generation, transmission and distribution across
11 countries. Our first international project was in 1998 when
we participated in the San Roque Hydropower Project
located in the Philippines. This made us the first Japaneseutility to participate in an overseas electric power project.

Utilizing our overseas bases including New York,
Amsterdam, and Jakarta, we aim to expand our overseas
energy business so it can continue to grow as a key
cornerstone of the Group’s overall earnings.

Power generation capacity by investment ratio(as of the end of April 2023)

2.852 GW

Overseas power projects (as of the end of April 2023)

22 projects in 11 countries
Business environment● Thermal power generation● Hydropower generation

Finland:
Piiparinmäki
Onshore Wind
Farm Project● Wind power generation■ Interconnector■ Distribution /Retail sales service

Overseas offices• New York• Paris• Amsterdam• Jakarta

U.K.:
Moray East
Offshore Wind
Farm Project

Finland:
Alajärvi
Onshore Wind
Farm Project

U.K.: Triton Knoll
Offshore Wind Power Project
Germany: Borkum Riffgrund 3
Offshore Wind Farm ProjectIreland:Evalair Wind Power Project

Breakdown:
Thermal power: 1.764 GW
Renewable energy: 1.088 GW

NeuConnect
UK-Germany
interconnector

Indonesia:
Gas-fired PowerJV Project
between KEPCO
Group and PT
Medco Power
Indonesia

U.K.:
Electricity NorthWest Limited
Electricity Distribution
Network Operation

Indonesia:
Rajamandala
Hydropower
Project●

Laos: Nam Ngiep 1 Hydropower Project●

The Philippines:
New Clark City Power Distribution
U.S.: St. Joseph Phase II
and Retail Sales Service
Thermal Power Project
Taiwan: Kuo Kuang
Thermal Power Project
Taiwan: Ming-Jian
U.S.:
Hydropower Project
Aviator Onshore
Wind Farm Project
The Philippines: San RoqueHydropower Project
Singapore: Senoko
Thermal Power Project

Australia: Bluewaters
Thermal Power ProjectIndonesia:
Tanjung Jati B Thermal Power Project

Kansai Electric Power Group Integrated Report 2023

Opportunities

U.S.: Hickory Run
Thermal Power Project●

U.S.: West Deptford
Thermal Power Project

Opportunities for profitable businesses increase, particularlyin emerging countries, where energy demand is on the rise.
As the initiatives toward decarbonization accelerate
worldwide, business opportunities increase in the field of
renewable energy.
Advancement in the use of new technology such ashydrogen, storage batteries, and floating offshore windturbines as well as digital technology such as AI and IoT
expands frontiers for new business opportunities.
Risks

●

●

Decline in the business conditions of thermal power projects
due to the further acceleration of global decarbonization.
Risks where ongoing projects become less profitable due toexternal factors such as international instability, economic
slowdown, policy changes, market fluctuations, and climatechange.

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Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Energy BusinessBusiness strategies
1 Zero carbon• Focus on IPP projects mainly in the field of renewable energy.
• Participate in transmission and distribution businesses that

Onshore Wind Farm Project (Finland) and Borkum Riffgrund 3
Offshore Wind Farm Project (Germany)
We are committed to creating a zero-carbon society,leveraging development expertise originating from ourenergy business.

contribute to power grid stabilization when large-scale
renewables are introduced.
• Participate in businesses utilizing new technologies such ashydrogen, storage batteries and floating offshore windturbines.

San Roque Hydropower
Project

3 Increase profitability

2 Solutions

Piiparinmäki Onshore
Wind Farm Project• Support the reduction of energy costs and the environmentalload.

2 Solutions

stations by combining AI and IoT with our technologicalstrengths.

A loan agreement was signed in fiscal 2022 for the UK-German
power link NeuConnect Interconnector Project, followed bycommencement of construction. We are engaged in thisproject, capitalizing on our technical expertise in installationof extra-high voltage direct current transmission lines, etc. In
the Philippines, meanwhile, the San Roque Hydropower
Project underwent an overhaul, where we provided technicalassistance to employees at the local operating company. The
first overhaul has been completed without any accidents or
injuries. We continue to provide solutions using ourtechnological strength and expertise.

• Support the planning, construction and operations of power

3 Increase profitability• Asset portfolio reclassification.
• Apply feedback from overseas operations to domestic
businesses.

• Enhance risk management capabilities.
Concrete measures

Our international business covers Asia, Europe, and North
America, expanding operations in the electric business,
including thermal/hydro/wind power generation and powertransmission/distribution. We will continue to increase thevalue of our assets by participating in new projects andrestructuring our asset portfolio through divestment ofprojects for which the purpose of participation has beenachieved. Being ahead of other Japanese companies inparticipating in offshore wind power projects, moreover, we
are incorporating the knowledge we obtained into ourdomestic business. Our other efforts include dispatching
personnel to projects and footholds abroad to keep track ofchanges in international relations and other conditions related
to business and to optimize business operations, thereby
improving risk management. These efforts are expected toboost the profitability of our operations.

1 Zero carbon
Three projects in which we participate completed theirconstruction and started commercial operation in fiscal 2022:
Triton Knoll Offshore Wind Farm Project (UK), Moray East
Offshore Wind Farm Project (UK), and Piiparinmäki Onshore
Wind Farm Project (Finland). Another two projects are underconstruction, gearing up for commercial production: Alajärvi

Kansai Electric Power Group Integrated Report 2023

Loan agreement signed for
the UK-German power link
NeuConnect Interconnector
Project

Triton Knoll Offshore
Wind Power Project82