February 2022 Regular Press Conference : President Hayashi's Message

• First, I will talk about the electric power supply and demand results.
• From last December through yesterday (February 21), the maximum three-day power average was 24,040 MW, which was recorded in January, and the maximum power at a single point was 24,480 MW, which was recorded between 9:00-10:00AM on January 14. Both figures were the highest ever recorded in the winter.
• This is primarily thought to be caused by an increase in household demand due to teleworking, an increase in industrial demand due to the economic recovery, as well as an increase in the use of heating due to lower-than-average temperatures.
• In particular, on January 14, when the highest maximum power at a single point was recorded, solar power generation output decreased due to snow; however, as electricity retailers procured additional power and the Chubu Electric Power Grid used balancing power supply such as pumped-storage power generation to increase supply capacity, the reserve rate had reached 7.8%, and we were thus able to provide a stable supply of electricity.
• With regards to the energy supply structure in recent years, since the Great East Japan Earthquake, thermal power generation has been gaining importance as a balancing power following the expansion in renewable energy, where the amount of power generated is affected by the weather and seasons. Meanwhile, aging oil-fired thermal power plants are gradually being suspended and decommissioned, and reliance on LNG thermal power is increasing.
• Under these circumstances, power supply and demand became tight last January (2021), highlighting the challenges in maintaining a stable supply.
• As such, the Chubu Electric Power Group took measures such as implementing reliable operation and maintenance of its power stations and transmission/transformation facilities, as well as fuel procurement for operation of aging thermal power stations and securing adequate inventory levels, etc., and therefore expects to be able to deliver a stable supply of electricity through this winter.
• Moreover, with regards to this summer (2022), although the supply and demand situation may change in the future, at present we expect to be able to secure a reserve rate of at least 3%, which is said to be the minimum necessary for a stable supply, even if this summer turns out to be the hottest in the past decade.
• The Chubu Electric Power Group will continue to conduct thorough maintenance management of its facilities, minimizing the risks of problems causing a decrease in supply capabilities, and will work on securing its supply capabilities by working together with the Organization for Cross-regional Coordination of Transmission Operators to handle unexpected changes in supply and demand.

• Next, I will talk about our efforts towards the popularization of electric vehicles.
• Approximately 20% of the CO₂ emissions in Japan come from the transport sector, and there are growing expectations for reducing emissions by electrifying automobiles, which account for the majority of these emissions.
• It is expected that specific measures for automobile electrification and decarbonization will also be discussed by the panel of experts regarding the “Clean Energy Strategy,” which was started at the end of last year.
• In order to realize a carbon-free society, the Chubu Electric Power Group is working on “decarbonization of the electricity that we deliver” as well as “promoting electrification/decarbonization of energy use” along with the society and our customers, and as part of this effort, we are making environmental improvements towards the popularization of electric vehicles.

(Development of Charging Infrastructure)

• First, I would like to talk about the development of infrastructure that is indispensable for the popularization of electric vehicles.
• Chubu Electric Power has invested in e-Mobility Power together with companies such as Tokyo Electric Power Company Holdings, Inc. and Toyota Motor Corporation, and is working on reinforcing charging infrastructure through the provision of services, including the installation of electric vehicle chargers, that enhance user convenience.
• Currently, there are approximately 8,000 high-speed chargers installed nationwide, of which approximately 7,000— about 90%—are connected to the network of e-Mobility Power, and using its membership card allows customers to use high-speed chargers anywhere in the country.
• We are also actively developing measures to enhance both the number and installation density of charging stations by verifying the installation of chargers on public roads in inner-city areas and expanding the number of charging stations installed at roadside service areas, etc., in order to secure installation space which will lead to an increase in installed chargers and reduce wait times.
• e-Mobility Power’s objective is to double the number of their high-speed chargers nationwide to approximately 14,000 by 2025 and will continue to vigorously move forward with developing charging environment that allows reasonable and stress-free charging for all drivers.

(Promoting Electrification of Heavy Commercial Vehicles)

• Next, I will talk about our efforts towards promoting the electrification of heavy commercial vehicles.
• Following the global trend of decarbonization, environmentally-conscious municipalities and corporations have shown increased interest in electrifying their circulating buses and commercial trucks; however, this involves issues such as operating methods and costs, etc.
• In order to contribute to resolving such issues, Chubu Electric Power has conducted various demonstrations regarding the optimal operation of EV buses and EV trucks starting in FY2020.
• The demonstrations will be ended as planned at the end of this fiscal year, and today I will present to you some of our results.
• First, with regards to operations, we have established an optimal charging method that allows switching to electric vehicles by quickly recharging the necessary amount of batteries during intervals between vehicle operations or during breaks, thereby maintaining the vehicle's operating rate without interfering with the operation schedule.
• With regards to costs, we applied the knowledge that the Chubu Electric Power Group has accumulated in the electricity business to analyze the business operators’ electricity usage and reduce costs by charging efficiently during time of low usage, thus achieving results that meet the operators' expectations.
• This effort is advantageous not only to the operators, but also to the Chubu Electric Power Group, as it equalizes power demand and contributes to stabilization of the entire system, and we are feeling confident that these results are highly meaningful for promoting the electrification of heavy commercial vehicles in the future.
• In the EV bus demonstration that is being conducted in Iida City, Nagano Prefecture, Chubu Electric Power Miraiz is operating a zero-emission bus, which is provided as part of its CO₂-free menu, using the power generated by the mega-solar power station that is jointly owned by Chubu Electric and Iida City.
• When we made proposals to other municipalities based on the findings obtained from Iida City, multiple municipalities decided to consider introducing EV buses, and we view this development as a tangible result of our demonstrations thus far.
• We will continue to leverage the findings obtained in our demonstrations thus far and accelerate our efforts towards promoting the electrification of heavy commercial vehicles.

(100% Electrification of Company-owned Vehicles)

• The Chubu Electric Power Group is also moving forward with the introduction of electric vehicles, and we have set a goal of 100% electrification of vehicles owned by the three business subsidiaries of Chubu Electric Power by 2030 in the Zero Emissions Challenge 2050 established last March.
• Currently, we are gradually replacing our vehicles with electric vehicles in order to achieve this goal, and we are also conducting reviews to equip our company sites with charging facilities to prepare for large-scale introduction of EV.
• In light of the expanding lineup of electric vehicles and EV sales, we will make sure to achieve our goal by increasing the number of EV at an accelerated pace in the future.

(Summary)

• We believe that electric vehicles will play an extremely large role in the advancement of energy use, not only by reducing CO₂ emissions while driving, but also by contributing to disaster prevention in that they can be used as a power source in times of disaster and stabilization of electric power system by utilizing the storage batteries in the vehicles.
• As an energy company, the Chubu Electric Power Group will contribute to the realization of a carbon-free society by advancing the decarbonization of power sources, as well as working together with the society and our customers to achieve electrification and decarbonization of energy use, such as by promoting the widespread use of electric vehicles, as I talked about today.
• This ends my presentation.