Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

VX

Commitment to Solutions

Our Group has been meeting the various demands of our customers and society by offering total solutions that combine our services, including comprehensive energy supply which is mainly offering
electricity, as well as telecommunications, daily life and businesses.
While customers and society have increasingly different needs, with social changes triggered by the global decarbonization movement and COVID-19 infection, we are committed to exceeding
customers’ expectations so that they will continue to select the Kansai Electric Power Group. Specifically, we are addressing head-on the needs and problems of customers and society while expanding
and providing valuable service solutions for home use, businesses and communities.

Services for residential customers
We offer a variety of services to help customers live
comfortably, conveniently, and cost-efficiently. These include
electric charging plans tailor-made to suit customers’
lifestyles, combined price plans for gas and electricity, and asubscription plan (Hapi e Set, Hapi e Set Solareji) for
promotion of electrification toward zero carbon, which
combines a fixed amount of electricity, the lease of theenergy-saving electric hot-water supply system EcoCute, andsolar power generation equipment.
We also offer services, such as dispatch of support
personnel to customers experiencing problems (sudden
power outages, etc.) and operating the Kanden Kurashi Mallfor the convenience of customers. These are all designed tohelp customers live a fulfilling life, with solutions available thatare specifically made in response to customers’ needs andlifestyles.
As an energy company, we are committed to improving
these services for customer satisfaction.

Hapi e Set
The Hapi e Set is an electrification subscription plan comprises
a “fixed amount of electricity” and the “lease of electric
appliances” (energy-saving electric hot-water supply system
EcoCute, etc.), where customers are free to choose an electriccharging plan and electric appliances according to theirlifestyle needs. It is a 10-year, fixed-rate plan of electrificationthat ensures a safe, comfortable, and convenient life.

Capturing customers’ feedback to create and improve
services
We work to create and improve services in response torequests received from customers through our contact
centers, website, etc. so we can meet our customers’ needs.
Sharing ofcustomer
opinions
Contact
centerWebsiteHapi e Set Solareji

Review of service
improvement/
creation

Customer
opinions/requests

The Hapi e Set Solareji, a new packaged plan comprising a“fixed amount of electricity” and the “lease of equipment”(solar power generation equipment, etc.) is designed for
newly built residential housing.
Customers

Services that reflect
customer opinions

Kanden Kurashi Mall
The Kanden Kurashi Mall is an EC mall that helps customers
solve problems in their daily lives. It consists of services
offering in “real estate and housing,” “insurance,”“housekeeping support,” “life support” and “healthcare andlearning,” offering wide-ranging services to provide solutions
to customers.

Kansai Electric Power Group Integrated Report 2023

Number of services improved and created based on
customers’ feedback
2022. 4 – 2023. 3 results

5350

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

VX

Commitment to Solutions

Kansai Electric Power Group Integrated Report 2023

 olar power generation equipment and storage batteries are subject to control as of*1 Stheend of April 2023, and EVs and air-conditioning units to be added by the end of
fiscal 2023. More equipment will be added in the near future.

Planning
Analyze the current
situation

Implementation

Calculate CO reduction
potential anddevelop a roadmap

SolutionsCOeReduceProjected decrease in energy consumption and CO2 emissions
Energy saving Reduce

miss

ions

Electricity switch
SwitchFossil fuel●Electricity switch

Grid power(CO emission intensities
decrease gradually)

Benchmarkyear●

Hydrogen, etc.

SwitchWhile we are committed to working together with customers
and communities to realize decarbonization and carbon
neutrality, we offer solutions (Zero Carbon Package) madespecifically to meet their needs. These range from consulting
and planning services for CO2 emission reduction to support
for implementing specific measures.
The Zero Carbon Package provides solutions for eachstage of CO2 emission reduction: ① “visualization” of energy,② “production” of energy, ③ “conservation” of energy, and ④“switching” energy.
As for the ① “visualization” of energy, we collaborate with
Zeroboard Inc. in providing the cloud service “zeroboard,”
which calculates and visualizes CO2 emissions based oninternational GHG protocol; CO2 emissions originating from
customers’ operations are visualized and analyzed to develop
the best possible reduction solution. In addition, we will help
customers calculate and visualize CO2 emissions originatingfrom their supply chains, products, and services.
On-site solar power generation services are also available
for the ② “production” of energy. Customers have on-site
solar power generation equipment installed by the groupcompany Kanden Energy Solution Co., Inc. (hereinafter,“Kenes”) and use the electricity generated, with the billcharged according to the amount they use. Many customers
opt for these services as they are very convenient. (For details,
refer to “Concrete measures” on page 52.)
“SenaSon,” an AI-based system optimizing operations of
distributed energy resources, made its debut in April 2023 forthe ③ “conservation” of energy. It is designed to control
energy resources such as solar power equipment, storage
batteries, EVs, air-conditioning units, and production
facilities*1.

Zero Carbon Package(Offsite)

Air conditioning, energy
management
Electricity switch, shift tonon-fossil fuels(ammonia, hydrogen, etc.)●

Renewable energy
electricity menu /Purchase of certificates(J Credit, Green Power
Certificate, I-REC)

Produce

Renewableenergy(Onsite)Produce

The “Zero Carbon Package” solution

For ④ “switching” energy, Kenes’ utility services implement
electricity switching at fossil fuel facilities. They take care ofdesign, financing, and construction of facilities involving
electricity switching, providing follow-up services spanningfrom tuning to operation and maintenance. Additional plansfor offsetting CO2 emissions through CO2 -free electricity arealso available for electricity used in facilities that havecompleted the transition to electricity. The renewable energy
certificate “I-REC,” which is valid in more than 50 countries(primarily Asian countries), moreover, is obtained for overseas
customers while the value of renewable energy electricity isprovided.
In addition to these services, the Zero Carbon Package
provides various solutions that meet customers’ needs. It isavailable nationwide, not just limited to the Kansai area, andhas been utilized by many customers.

Energy consumption

Services for corporate customers

2050
Purchaseof certificates* Switch Zero carbon●

Renewable energy (solar
energy, etc.) onsite/offsite+ Storage batteries*Offsets CO emissions from grid power. Certificates to be purchased are expected to decrease asCO emission intensities decrease gradually.

Providing SenaSon
SenaSon (Smart energy aggregate Solution), which was
released in April 2023, controls all kinds of distributed energy
resources in real-time, thereby helping customers reduce CO2
emissions and save energy.
Compatible with the DR*2 order, it also reduces constraints
in power systems caused by increased introduction ofrenewable energy, contributing to realize a decarbonizedsociety.
emand Response: Energy resources are controlled to strike a balance between*2	Dsupply
and demand of electricity, with demand patterns adjusted accordingly.
Function ①

Customer premises

Customer’s other locations

Optimized control of all kinds of distributed energy resources
based on demand and power generation forecasting
AirProduction
Solar power
StorageconditioningEVs
facilities, etc.
equipment
batteries
units
Demandand power
generation
forecasting

Distribution
warehouses

Office buildings,
etc.

Solar power
equipment
Storage batteries
EVs
Air-conditioning units
Production facilities, etc.

Control
order

Linkedwith servers

DR order, etc.

Function ②
Optimized resource
control for
DR orders, etc.

Aggregation coordinator

3
Function ③
PPS

Optimized control ofmultiple locations

Function ④
4All resources and locations are controlled on the same screen

51Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

VX

Commitment to Solutions
Concrete measures<Example of on-site solar power generation services provided>
Nikken Kosakusho Works, Ltd. came up with the slogan“Machining ECO” in 2009 to provide customers with productsthat contribute to saving energy and improving efficiency(energy and cost saving). As efforts are underway worldwide
to promote decarbonization and achieve SDGs, the company
is committed to further pursuing “Machining ECO.” As part ofits commitment, the company decided to start studying
introduction of a solar power generation system.
The company emphasized cost-effectiveness as well as
energy-saving performance when planning the system. As aresult of reviewing our estimation, the company found it
sufficiently cost-effective and adopted our “on-site solar
power generation services,” of solar panels with a total area of
20,000 m2 and a capacity of 1,920 kW, which were installed on
the rooftop of the company’s main plant in January 2022.
Storage batteries are also in place to prepare for power
outages during disasters, etc., which are estimated to becapable of supplying electricity for lighting fixtures and airconditioning units at offices, and servers for about five hours.
The company think they are effective for emergency response
measures as these systems ensure the safety of employees
and information securities.

Services for customers in the community sector

Close to zero CO2 emissions at World Heritage andNational Treasure Himeji Castle

We are developing new solutions, taking into account thechallenges and needs of customers and local communities,
while working on sustainable, attractive urban development
through our community business, which coordinates andprovides company attraction programs (for vitalizing the
Kansai economy and creating electricity demand) and theGroup’s wide-ranging proprietary solutions.

Our Company and the Himeji municipal government jointly
applied to the Decarbonization Pilot Area Program, hosted by
the Ministry of the Environment, and Himeji City was
designated as one of the first pilot areas.
We will be addressing the needs and challenges of Himeji City
to come up with specifically made solutions, thereby virtuallyeliminating all CO2 emissions from power consumption at Himeji
Castle and its neighboring public facilities by fiscal 2026.

Japan’s first Renewable Energy 100 Town
Suita Sustainable Smart Town inauguration
Japan’s first Renewable Energy 100 Town was launched in
April 2022, where area bulk power receiving, renewableenergy, and non-fossil fuel certificates are used to power thewhole town virtually and exclusively with renewable energy.
Solar power generation facilities, storage batteries, and EVs,
meanwhile, contribute to improving resilience toemergencies.
Renewable energy
power source

Procurement

Non-renewable Procurement
energy powersourcePost FIT

Contractor

Kansai Electric Power Group Integrated Report 2023

Decarbonization pilot area
Local
residents

Publicfacilities
Himeji Castle and its
neighboring facilities

Local
companies Renewable energy development

Tourists(unused municipal land)

Creating a decarbonization domino, originating from a zero carbon castle

Area bulk
power
receiving

Procurement

Supplying renewable electricity (virtually 100%) by leveraging non-fossil fuel certificates

Nikken Kosakusho Works’ trade name and solar panels on the rooftop

The entire Himeji City area

Energizing the Kasai economy by attracting data centersand creating demand for electricity
While the increasingly digitalized society is resulting in an
exponential increase in the amount of data, there has been a
construction boom for data centers, where telecommunicationequipment operates 24 hours a day, 365 days a year,
consuming a massive amount of electricity.
We have been providing services to data centers for a longtime through the course of our business, working to create
electricity demand in the Kansai area and provide solutions
specially developed by the Group. These efforts have led tothe development plan for the Optage Sonezaki Data Center,
which was announced in fiscal 2022.

52

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

VX

Commitment to Solutions

Providing area value improvement and community
delivery services in Smart Eco Town Hoshida“Area value improvement services” were launched in the
Smart Eco Town Hoshida, which is being developed by
Kanden Realty & Development. These services include town
security maintenance and car-sharing service provided jointlywith other companies, all designed to support community
development and management.
“Community delivery services” are also available on a trial
basis to support shopping and improve convenience in the
town and peripheral areas. Through these services, we arecommitted to creating a community that satisfies theresidents and the companies making inroads.

promote renewable energy. We, therefore, will provide
support for electricity self-sufficiency to prepare for power
outages during disasters, etc. In addition, the wholly owned
subsidiary E-Flow will help the industrial park operate largescale storage batteries to generate revenue from trading.
We will utilize distributed resources including customer
production facilities, solar power and other forms ofrenewable energy, storage batteries, and EVs to contribute toachieving zero carbon and striking a balance between supply
and demand in electricity.

Services for customers in the transportation sector
Supporting electrification of business fleets

Leveraging community mobility data and reviewing“last one mile transport” services
We are using data obtained from mobility sensors to monitor
behavior changes and create prosperity in Sannomiya, Kobe,
where redevelopment is underway. A new mobility system,
for example, was introduced in February 2022 to improve themobility and accommodation capabilities in the community,with mobility spots* demonstrated. Beverage and fooddelivery services were also demonstrated in October the same
year for public spaces. Going forward, we intend to propose
more marketing measures such as holding events to further
revitalize the local economy.

To help customers electrify their business fleet and, byextension, reduce CO2 emissions from the transportation
sector, we provide leasing services for EVs and their charging
facilities along with EV Bus Package Services, which offer
customers electric buses, charging facilities, and energy
management as one package.

Supporting the switch to EVs

Kansai Electric Power Group Integrated Report 2023

Research and development(business overview)

Leveraging FMS

Energy Management System (EMS) coupled with
Fleet Management System (FMS) FMS×EMS

Leveraging EMS

Leveraging FMS

Electric bus operation management

Leveraging EMSElectric bus charge control, supply-demand
management at business locations, renewableenergy utilization

Leveraging DWPT

Operation and energy management

Introduction of advanced technology
DWPT system embedded in the road charges
electric buses while traveling2025: Participating in Expo 2025→2025 and beyond: Demonstration by city buses

as well as a transport node, which promotes the movement of people.

An area micro grid will be constructed in the Toyooka City
Hub Industrial Park to improve the resilience of the area and

The Company will participate as one of sponsors in the Future
Society Showcase Project Exhibition at Expo 2025 Osaka,
Kansai. The project was adopted in July 2022 to demonstrateresearch and development supported by the Green
Innovation Fund*1, where 100 electric buses will be jointly
operated with Osaka Metro Co., Ltd. and other companies
inside and outside the venue. Newly developed technology
will be demonstrated, including fleet and energy
co-management, autopilot functions, and dynamic wirelesspower transfer, or DWPT.
In addition, we will install and operate*2 the charging
facilities for “flying cars” at the vertiport in the venue. We willcontinue to work on these future-oriented initiatives andpromote electrification in the mobility sector to help realize azero-carbon society.

Leveraging DWPT

to support the movement of people, each equipped with functions other* Spots
than mobility platforms, such as a telecommunication base station and rest area

Participating in the Toyooka City Area Micro Grid
Project, etc.

Initiatives for mobility at Expo 2025 Osaka, Kansai

With this one packaged service helping customers electrify
their business fleet, we provide solutions for challenges suchas selection of vehicles, installation of charging and powersource facilities, operation of the fleet, monitoring ofelectrification effects, and promotion of decarbonization.

“Green Innovation Fund Project—Smart Mobility Society Construction,” offered by*1	the
New Energy and Industrial Technology Development Organization (NEDO)
upporting operation of ORIX Corporation’s flying car vertiports in the Expo 2025
*2	Svenue

53

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

VX

Commitment to Solutions
Participating in VPP business

Establishment of the limited liability company E-Flow
We established the E-Flow LLC in April 2023. Leveraging theresults of VPP demonstration and the expertise derived fromit, E-Flow specializes in trading and operation of distributed
energy resources such as customers’ production facilities,
renewable energy (solar power, etc.) and large-scale storage
batteries.
Specifically, E-Flow extracts untapped value from existingenergy resources (customer production and power generation
facilities, etc.) to alleviate issues related to tight electricity
supply and demand and accommodate fluctuations inrenewable energy output.
As for renewable energy resources such as non-FIT solar
power plants, meanwhile, the services it provides include
precisely predicting renewable energy output, which issusceptible to weather conditions, and providing maximum
non-fossil value.
Taking into account the characteristics of individual storage
battery (capacity, degradation risks, etc.), moreover, E-Flow
improves the profitability of large-scale storage batteries with
AI-controlled optimized operation systems, contributing tostabilizing electricity supply and further promoting renewableenergy.
Participating in a storage station business
Utilizing the national government’s subsidiary, we will have a
stake in one of the largest storage stations in Japan (48 MW /113 MWh) and E-Flow will be in charge of its operation. With
this business, we will contribute to stabilization of electricity
supply and demand and the further introduction ofrenewable energy.

Kansai Electric Power Group Integrated Report 2023

Rendering of the planned storage station

Initiatives abroad
Cooperating with WASSHA Inc. in providing electricity
services to areas without electricity in Africa
The Company entered into a business partnership with
WASSHA Inc. in August 2019 to provide electricity services toareas without electricity in Africa, particularly in Tanzania,
where solar panels are installed at grocery stores called“kiosks” for lease of LED lanterns equipped with solar-charged
batteries to those living in areas without electricity.
We procure equipment such as LED lanterns to be leased
to WASSHA, which seeks partnership with kiosks to have them
introduce the leased equipment for promotion and expansionof the services.
We would like to expand the scope of this service businessand explore the further value creation for it by utilizing ourknowledge and expertise that have been accumulated in ourelectricity business over the years. At the same time, we arecommitted to contributing to sustainable growth of society
by providing solutions to global social challenges such as
SDGs and decarbonization.

Specific initiatives
We have been developing our business in a variety of areas
internationally for over 20 years, not just limited to Japan.
Demand-side initiatives
As a demand side initiative, we started surveying energy
management in Japanese companies’ plants in Thailand inaround 2016.
While companies are stepping up efforts to addressenvironmental issues to achieve carbon neutral by 2050, there
have been a growing number of customers who want to saveenergy and reduce CO2 emissions, but do not have the systems
required or cannot afford to implement them on their own.

54Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

VX

Commitment to Solutions

Some of them do not even know where to start with energy
management at their overseas plants.
We, therefore, established Kansai Energy Solutions(Thailand) Co., Ltd. (K-EST) in Bangkok in August 2018 andKansai Energy Solutions (Vietnam) Co., Ltd. (K-ESV) in Ho Chi
Minh in December 2021 to provide solutions primarily to
Japanese plants operating in these countries.

Providing on-site services in Thailand and Vietnam
with no initial investment
K-EST and K-ESV
K-EST and K-ESV serve Japanese customers that have business
footholds (plants) in Thailand and Vietnam. They provide
overseas solutions for solar power generation systems,
co-generation systems (CGS), on-site control of water chillers
and boilers, I-REC, energy-saving measures, etc. to help
customers reduce energy use, costs and CO2 emissions.
They also provide on-site services, where they own andoperate facilities (solar power generation systems, CGS,
boilers, etc.) installed at customers’ plants, which in turncustomers use the electricity and heat (steam, chilled water,etc.) generated by those facilities, with service fees paid to
K-EST and K-ESV during contact periods.
K-EST and K-ESV have three major advantages.
First, no initial investment is needed, and cost-saving
effects can be expected upon receiving the services. Second,
being full-maintenance services, they eliminate facility
maintenance work and costs. And third, solar power output
and steam production are visualized.
K-EST and K-ESV, moreover, uses JCM (Joint Crediting
Mechanism) facility subsidies in providing on-site services
abroad.

Kansai Electric Power Group Integrated Report 2023

Providing such services as part of JCM projects contributes
to bilaterally reducing CO2 emissions and alleviating the costburden on customers.

JCM project examples
Our demand-side initiatives abroad started with services from
K-EST, which introduced a co-generation system to Teijin
Thailand Limited.
As a JCM project, a high efficiency 10 MW engine
generator was installed at the Teijin Thailand plant.
With the services in place, Teijin Thailand Limited has
shown a significant reduction in CO2 emissions in addition to
power supply in times of power outages, with CGS operating
on its own. They all contribute to stable operation at the Teijin
Thailand plant.
Through this project, we have proceeded to many other
JCM projects such as installation of high-efficiency chillers/boilers and solar power generation systems.
More recently, we reached an agreement with Sumitomo
Rubber (Thailand) Co., Ltd. on the implementation of solar
power generation systems (about 22 MW) and CGS (about 13
MW). In addition, offering our Group’s total solutions including
I-REC procured by the Company, we help customers achievecarbon neutrality in electricity usage.
As for these projects, we cooperate with reliable local
partners with the intent of passing on our technology to Thai
technical staff. The objective is to introduce “Japan-quality”
facilities and keep them operating efficiently. We arecommitted to expanding operations in target countries tohelp customers reduce energy use and CO2 emissions in thelong term.

Rendering of solar panels to be installed at Sumitomo Rubber (Thailand)55