February 2023 Federation of Electric Power Companies of Japan Press Conference with President Hayashi

• On February 10, the Cabinet approved the basic policy for the realization of GX. The environment surrounding the energy business is at a historic turning point, as policies to realize a decarbonized society based on the restructuring of domestic stable energy supply are accelerating.
• Amid this, the Chubu Electric Power Group is making steady efforts to realize the decarbonized society raised in the “Zero Emissions Challenge 2050” and “Management Vision 2.0” developed in 2021.
• In specific we have set the following goals:
  • “Reduce CO₂ emissions sourced from electricity we sell to our customers by at least 50% compared to 2013 levels” by 2030
  • “Challenge to achieve net-zero CO₂ emissions across all our business operations” by 2050
  We will promote decarbonization of the entire social system through decarbonization of electricity we deliver as well as electrification and decarbonization proposals responding to customer needs.

(Decarbonization of electricity we deliver)

• First, I would like to introduce our efforts to decarbonize electricity we deliver.
• To further expand renewable energies, the Chubu Electric Power Group aims to develop at least 3.2 million kW by around 2030, combining the group’s goal of 2 million kW and expansion goal with our customers of 1.2 million kW. Our current progress is at 0.73 million kW including sites in the planning stage.
• This fiscal year, we started commercial operation of renewable energy power plants at six sites including the first large-scale commercial offshore wind power plants in Japan at Akita Port and Noshiro Port, and Okuhida-onsengo Nakao geothermal power plant in Gifu Prefecture, which is expected as a coexistence and co-prosperity model of hot springs and power generation business.
• In the next fiscal year, we are scheduled to start commercial operation at eight more sites including the first floating offshore power plant in Japan offshore Goto City, Nagasaki Prefecture. We feel that we are making great progress toward achieving our goals, both inside and outside the Chubu area.
• To utilize nuclear power which takes on a very important role in both stable supply and decarbonization, we are working to restart Hamaoka Nuclear Power Station as soon as possible with utmost priority on ensuring safety and gaining understanding of the local residents.
• Hamaoka Nuclear Power Station is currently undergoing a review to verify compliance with the new regulatory requirements. The review is progressing steadily this fiscal year, with the Nuclear Regulation Authority showing understanding toward seismic motions to be formulated by identifying the epicenter and maximum water level of tsunami approaching the front of the site due to inter-plate earthquakes.
• We will continue to diligently facilitate the review while communicating with the Nuclear Regulation Authority so as to proceed with the plant review as soon as possible.
• In Japan, where energy resources are scarce, it is difficult to provide the necessary amount of electricity with renewable energies and nuclear power alone. We believe reducing CO₂ emissions from thermal power generation is a power tool for achieving a decarbonized society.
• For decarbonization of thermal power plants, JERA is taking on the challenge of realizing substantially zero CO₂ emissions from domestic and overseas business by 2050, by proceeding with co-firing demonstration aiming to convert 20% of fuel to ammonia in FY2023 at Hekinan Thermal Power Station.
• In addition, the Chubu Electric Power Group including JERA promotes private-public partnerships aiming to build a hydrogen and ammonia supply chain that extends from the international supply network including ship transportation to the regional supply network which responds to the regional hydrogen demand.

(Electrification and decarbonization responding to customer needs)

• Next, I would like to introduce our efforts toward electrification and decarbonization responding to customer needs.
• In order to respond to the diverse needs of our customers, we promote the following in a “triad”:
  • “Energy saving” which enhances efficiency of energy use by our customers including electrification
  • “Energy creation” which creates new non-fossil resources, such as PPA service utilizing solar power generation
  • “Energy activation” which expands energy utilization through local production and local consumption of energy demand response services
• We will continue to contribute to the reduction of CO₂ emissions by our customers and local production and local consumption of renewable energies through further proliferation of CO₂-free electricity in all of the Chubu area.

(Decarbonization efforts in global business)

• Lastly, I would like to introduce our decarbonization efforts in global business.
• The Chubu Electric Power Group plans to make strategic investments of about 1 trillion yen for 10 years from FY2021 to FY2030. 400 billion yen of said investments will be distributed to global business to accelerate investment in businesses that lead to decarbonization.
• This fiscal year, we have strengthened our initiatives to support decarbonization overseas and acquire new knowledge, such as investing in OMC, which operates renewable energy-based power plants via mini-grids in India, and Eavor, which a Canadian geothermal startup company.
• In addition, on February 2, we signed a memorandum of understanding with British company, bp, to explore opportunities for decarbonization in Japan and the Asia region.
• We will leverage bp’s development experience in large-scale CCS projects and our knowledge as an energy operator in the Chubu area to support decarbonization at Nagoya Port and surrounding areas. We will also explore opportunities to accelerate decarbonization solutions in the Asia region.
• The Chubu Electric Power Group will promote energy saving, electrification and utilization of unused energy together with our customers, in addition to our initiatives in the power generation area as an energy operator, thereby continuing to fulfill our unchanging mission of stable supply of electricity and take on the challenge to realize a decarbonized society.