Key Point of President's Regular Press Conference
Key Point of President's Regular Press Conference
September 2021 Regular Press Conference : President Hayashi's Message
September 28, 2021
Chubu Electric Power Co.,Inc.
- I will be discussing the following matters today:
- Initiatives for expanding overseas business
- Chubu Electric Power Group’s environmental initiatives
- Techno Fair 2021
Initiatives for expanding overseas business
- The Chubu Electric Power Group states, in its management vision, commitment to increasing its consolidated ordinary income to more than 250 billion yen in the late 2020s, and raising the proportion of overseas business and other business in new high-growth fields to shift their ratio against the domestic energy business from 1:4 to 1:1.
- In order to achieve this management goal, the Group plans to make strategic investments worth over 400 billion yen in overseas business and high-growth business over five years from FY2019 to FY2023.
- In overseas business, under appropriate risk management, we plan to invest some 200 billion yen in business categories that lead to “decarbonization” to obtain new sources of income.
- In business deployment, we divide target regions into “Europe & Russia” and “Asia,” clearly define main areas of business for each of the regions, and establish main business bases for prioritizing operations so as to form the optimized business portfolio.
- In “Europe & Russia,” we use the Dutch general energy firm Eneco, acquired jointly with Mitsubishi Corporation in March last year, as the operation base and platform for our European strategy in conducting renewable power generation business and retail business.
- In “Asia,” our business mainly focuses on consultation services, including promoting the use of electrical appliances in regions with underdeveloped electric infrastructures, with a plan to further encourage decarbonation in the future.
- As the first step toward promoting decarbonization in Asia, Chubu Electric Power has signed a stock purchase agreement with some of the shareholders of Bitexco Power Corporation, which runs a hydroelectric business in Vietnam, and also entered into a stock subscription agreement with Bitexco itself.
- In the future, we plan to acquire 20% stake in the company after gaining approval from regulatory authorities.
- This is the first time Chubu Electric Power invests in a hydroelectric business overseas, and establishes a business base in Vietnam.
- Vietnam is undergoing rapid population increase and economic development, and expected to experience further expansion in electricity demand. Due to high insolation and preferable wind conditions, the country has a strong potential for the use of renewable energy. The Vietnamese government has announced a plan to increase the ratio of renewable energy, which adds expectations for even greater growth.
- Bitexco is one of Vietnam’s largest private renewable power companies that runs and manages 21 hydropower plants and one photovoltaic power station with owned electric generating capacity totaling 798,000kW.
- Tapping into technologies and knowledge accumulated since business foundation, Chubu Electric Power strives to contribute to Bitexco’s business expansion through streamlining their hydroelectric plant operations, improving their safety and developing photovoltaic power plants / onshore wind power plants.
- Insight gained through investing in Bitexco will be used to aggressively deploy renewable power business in other Asian countries, thereby reinforcing the initiative for decarbonization.
- We plan to actively operate the renewable energy business as well as business based on CCS and other new technologies mainly in Europe and Asia so as to contribute to building a “decarbonized society.” Technologies and know-how gained overseas will be combined with strengths built up in Japan to reinforce the “profit-generating business foundation.”
Chubu Electric Power Group’s environmental initiatives
- Next, let me talk about Chubu Electric Power Group’s environmental initiatives.
- The Chubu Electric Power Group execute environmental management appropriately under its basic environmental policy. Each employee regulates their own actions while Chubu Electric Power implements initiatives for building a decarbonized, nature-symbiotic and recycle-oriented society, in order to contribute to the advancement of a sustainable society.
- Each year, we post a brochure on the Chubu Electric Power Group’s environmental initiatives on the website for users, as a reference material describing our initiatives, designed around our basic environmental policy. Today, the FY2021 version of the brochure has been released.
- The brochure on our environmental initiatives outlines the Chubu Electric Power Group’s basic stance on environmental conservation, and specific initiatives for each of the key themes listed in the basic environmental policy.
- Activities aimed at deepening communication on the environment and energy with local communities are featured.
- The Chubu Electric Power Group works with members of local communities in conducting conservation activities such as community cleanups, observation of sea creatures and seminars on marine plastics as experiences for exploring environmental issues. We plan to enhance such educational activities and collaboration with local companies in the future.
Techno Fair 2021
- Finally, let me talk about the Techno Fair 2021.
- Techno Fair is an annual event, organized by the Technological Development Division to present out initiatives for technological development. This year’s fair will be the 29th one.
- This year, the event continues to feature information about “delivery of resilient and optimized energy services,” “offer of services that bring convenience and enrich life,” “initiatives for business customers,” and “improvement in nuclear safety technology,” as well as newly covering the theme of “initiatives for decarbonization” to present latest technological development achievements, such as the results of research concerning co-firing of hydrogen and ammonia at thermal power stations.
- Continuing on from last year, this year’s event will be scaled down, carefully choosing booths and introducing the advance-booking system as coronavirus infection prevention measures. A dedicated webpage within Chubu Electric Power’s website features video showing research results and other materials until the end of this year.