May 2025 Regular Press Conference : President Hayashi's Message

(Current status of renewable energy introduction)

• The amount of renewable energy introduced throughout Japan, mainly solar power, has been steadily increasing since the start of the FIT program in fiscal 2012.
• In the Chubu area, the total amount of interconnection as of the end of March 2025 increased by 3.3% compared to the same period last year, to 12.38 million kW.
• The minimum demand for the last fiscal year was 9.96 million kW, and the amount of renewable energy interconnected exceeds the minimum demand during light load periods such as spring and autumn.
• According to the Seventh Strategic Energy Plan approved by the Cabinet in February, renewable energies are expected to account for 40 to 50% of the power supply mix in 2040, and the Chubu area is also expected to see a steady increase, mainly through solar power.

(Need for output control)

• Next, I will discuss the need for output control of solar and wind power from two perspectives: maintaining the balance between supply and demand, and maximizing the introduction of renewable energy.
• Electricity supply must always match the ever-changing demand, and if there is an imbalance between supply and demand, it could lead to a large-scale power outage.
• For this reason, it is necessary to respond to the large fluctuations in the output of solar and wind power generation due to weather conditions, and constantly adjust the output of thermal and other power generation to maintain a balance between supply and demand.
• On the other hand, if the amount of power generated in the entire area exceeds demand, resulting in a surplus of power, the output of thermal and other power generation is controlled in order based on the "Priority Power Supply Rules," and if the surplus power still cannot be settled, power generation operators are asked to control the output of solar and wind power generation.
• Assuming output control is implemented, the amount of renewable energy generated will increase over time in its absence. Therefore, even if output control is implemented during certain periods, it will still be possible to increase the amount of renewable energy introduced and the overall power generation.
• Under the current system, all power generation operators above a certain scale are connected to the power grid after agreeing to output control.

(Status of output control implementation)

• In the Chubu area, the number of output controls has increased every year since the first implementation in April 2023.
• Last fiscal year, a total of 46 output controls were implemented, approximately double the number in fiscal year 2023.
• Additionally, the output control rate was 0.31% last fiscal year, representing the percentage of solar and wind power suppressed.
• Although this is currently a relatively low level, it is expected to increase in line with the expansion of renewable energy.
• Against this backdrop, the Group has been promoting various initiatives to reduce output control on both the supply and demand sides, based on the Renewable Energy Output Control Countermeasure Package compiled in December 2023.

(Initiatives to reduce output control: Chubu Electric Power Miraiz)

• Now, I would like to talk about the initiatives of Chubu Electric Power Miraiz (“Miraiz”).
• Miraiz is working on demand response initiatives such as providing NACHARGE and offering Daytime Toku Plan.
• Demand response is a system that encourages customers to devise ways to use electricity in accordance with the supply-demand situation and the amount of electricity generated from renewable energy sources.
• The first point, NACHARGE, is demand response for residential customers and has been deployed since July 2022.
• This service offers customers the reward points according to the value of their cooperation for changing their electricity usage time, for example, by doing household chores such as cleaning and laundry in batches during the time when there is a surplus of electricity generated.
• As of May 8, about 370,000 households had signed up.
• The second point, Daytime Toku Plan, was launched in April of this year as an initiative to encourage the creation of daytime demand for heat pump water heaters, or "Eco-Cute" systems, in homes.
• Daytime Toku Plan is a rate plan designed for customers who use Eco-Cute water heaters and other appliances with daytime heating functions. It offers lower rates during the daytime than during other times of the day, encouraging customers to shift their electricity usage from nighttime to daytime.
• Customers will be able to use less expensive electricity during the daytime, thereby contributing to the reduction of output control and the expansion of renewable energy.

(Initiatives to reduce output control: Chubu Electric Power Grid)

• Next, I will discuss the initiatives of Chubu Electric Power Grid (“Power Grid”).
• Power Grid is working to "promote online connection of renewable energy power generation facilities," "request for cooperation in lowering the minimum output of thermal power generation facilities," and "promote internet connection of Eco-Cute.”
• The first point, online connection of renewable energy power generation facilities, involves installing equipment that enables remote output control of power generation facilities and performing output control in line with actual supply and demand based on the situation on that day, thereby reducing the amount of output control required.
• Through our recommendations to power generation operators, we have gradually increased the number of online connections of renewable energy power generation facilities. As of the end of September 2024, 59.8% of solar power generation systems were online.
• The second point, lowering the minimum output of thermal power generation facilities, involves reducing the output control amount by keeping the output of thermal power generation as low as possible.
• In response to the national council's announcement of a target to reduce the minimum output of existing thermal power generation, Power Grid is requesting the cooperation of power generation operators.
• The third point is the internet connection of Eco-Cute. Some Eco-Cute models are linked to weather forecasts and have a function that automatically heats water during times when solar power generation is expected to increase.
• From the perspective of promoting the use of these functions, we ask our customers to connect to the internet.

(Conclusion)

• The understanding and cooperation of our customers and power generation operators are essential for reducing output control, including the initiatives I discussed today.
• The Group will continue to promote various measures on both the supply and demand sides and strive to maximize the use of renewable energy together with our customers and power generation operators.
• This ends my presentation.