Kansai Electric Power
Basic Information
- Stock Code
- 9503
- Industry
- Electric Power and Gas
- Category Detail
- Electric Power & Gas
- Prefecture
- Osaka Prefecture
- Establishment Year
- May 1951
- Listing Year
- July 1951
- Official Website
- https://www.kepco.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- Remixpoint, Tokyo Electric Power Company Holdings, Chubu Electric Power, Chugoku Electric Power, Hokuriku Electric Power, Tohoku Electric Power, Shikoku Electric Power, Kyushu Electric Power, Hokkaido Electric Power, J-Power
Overview
Kansai Electric Power is Japan's second-largest electric power company, established in 1951, and is characterized by a high ratio of nuclear power generation.
Current Situation
Kansai Electric Power maintained a solid financial base in the fiscal year ending March 2024, with net sales of approximately 4.0593 trillion yen and operating income of approximately 728.9 billion yen. It primarily operates electricity retail and generation businesses centered in the Kinki region, with a nuclear power generation ratio of about 55%, which is high within the industry. In capital expenditures, it is strengthening responses to a decarbonized society, such as introducing power generation technology using 30% hydrogen fuel. It is also advancing the expansion of renewable energy through collaboration with related companies. It has addressed the cartel issue pointed out by the Japan Fair Trade Commission through voluntary disclosure and is strengthening compliance. It is promoting sustainability initiatives with the goals of diversifying assets and coexisting with local communities. In the future, it aims to contribute to stable regional energy supply by expanding new energy businesses and improving efficiency through the separation of transmission and distribution divisions.
Trivia
Interesting Facts
- Kansai Electric Power is the second-largest in Japan in electricity sales volume, following Tokyo Electric Power.
- Nuclear power generation ratio is about 55%, high even domestically.
- Owns large-scale hydropower facilities including Kurobe Dam.
- The only electric power company operating the Kanden Tunnel Electric Bus.
- Contributes to the region as a sponsor of numerous TV and radio programs.
- Owns multiple nuclear power plants in the Wakasa region, Fukui Prefecture, known as 'Nuclear Alley'.
- Previously received administrative guidance for unauthorized customer information viewing issue.
- Continued promotion of all-electric homes even after the Great East Japan Earthquake.
- Voluntarily reported cartel issue and was exempted from surcharge.
- Reported case where 197 group employees illegally obtained national qualifications.
- Implemented measures such as executive compensation returns after Antimonopoly Act violation discovery.
- Historically made large political contributions to successive prime ministers.
- Deeply involved in power infrastructure development in the Kurobe River basin.
- Company song 'Yobu yo Kumo wo' composed by renowned composer.
- Kansai Electric Power Group widely deploys from wind to solar power generation.
Hidden Connections
- Strong ties with Daihen, related to Sumitomo Group.
- Osaka City, holding over 7% as top shareholder, involved in management.
- Invests in multiple local TV stations and involved in broadcasting.
- Regional monopoly status through asset inheritance from multiple former Kansai electric companies.
- Employee death from overwork occurred in response to Nuclear Regulation Authority reviews.
- Amakudari issues with Ministry of Economy, Trade and Industry pointed out.
- Directly operates specific railways like Kurotaki Gorge Railway.
- Kansai Electric Power president alumni serve as chairmen of Kansai Economic Federation.
Future Outlook
Growth Drivers
- Expansion of renewable energy toward realizing a decarbonized society
- Expansion of hydrogen energy technology utilization
- Efficient energy management using smart grids and ICT
- Improving nuclear power safety and extending operations
- New customer acquisition through full electricity retail liberalization
- Enhancing corporate value through community coexistence and ESG management
- Business efficiency and transparency improvement via transmission and distribution separation
- Increasing demand for energy services in aging society
- Advanced technology introduction corresponding to strengthened environmental regulations
- Advanced fuel price fluctuation risk management
- Strengthening collaboration with overseas energy businesses
- Promoting electric vehicle charging infrastructure development
Strategic Goals
- Raise renewable energy ratio to over 30%
- Establish safe and long-term nuclear power operation system
- Achieve 50% CO2 emission reduction target (vs. 2030)
- Achieve 100% smart meter penetration rate
- Complete full transmission and distribution separation and business efficiency improvement
- Expand commercialization of hydrogen fuel power generation
- Implement community coexistence programs at all business sites
- Practicalize renewable energy storage technology
- Further advance customer information management and compliance systems
- Enhance contributions to sustainable society and ESG reporting
Business Segments
Industrial Electric Power Retail
- Overview
- Provides stable and efficient electricity supply and energy management services to diverse industrial customers.
- Competitiveness
- Stable supply capacity leveraging extensive transmission and distribution network and high nuclear power generation ratio
- Customers
-
- Manufacturing factories
- Commercial facilities
- Office buildings
- Logistics warehouses
- Public facilities
- Schools and hospitals
- Data centers
- Hotels and restaurants
- Agricultural corporations
- Local governments
- Electrical equipment companies
- Energy management companies
- Products
-
- Fixed supply contracts
- Demand-supply adjustment services
- Peak cut support
- Electricity usage diagnostics
- Renewable energy supply
- Smart meter integration
- On-site generation support
- High-voltage reception plans
- Energy-saving consulting
- Demand-supply optimization systems
- Thermal and nuclear power supply
- Energy management systems
Power Generation Business
- Overview
- Combines diverse power sources to conduct stable and environmentally considerate power generation business, supplying to wholesale markets and directly.
- Competitiveness
- Possession of high-efficiency pressurized water nuclear technology and large-scale hydropower
- Customers
-
- Wholesale electricity market
- Other electric power companies
- Independent power producers
- Renewable energy operators
- National and local governments
- Industrial partners
- Overseas energy operators
- Electricity demand-supply adjustment organizations
- Equipment maintenance companies
- Fuel suppliers
- Products
-
- Nuclear power generation
- Thermal power generation (LNG, coal, oil)
- Hydropower generation
- New energy generation (solar, wind, biomass)
- Wholesale electricity supply
- Power plant operation services
- Equipment maintenance management
- Fuel procurement
- Electricity trading
- Environmentally responsive technologies
Transmission and Distribution Business
- Overview
- Operates and maintains transmission and distribution infrastructure in the Kansai area, supporting stable electricity supply.
- Competitiveness
- Extensive transmission and distribution infrastructure management and robust safety standards
- Customers
-
- Retail electricity operators
- New power companies
- Factories and commercial operators
- Local governments
- Equipment maintenance companies
- Data communication operators
- Public regulatory agencies
- Electricity demand-supply adjustment organizations
- Products
-
- Transmission network operations
- Distribution equipment management
- Meter reading and information management
- Electricity demand-supply adjustment support
- Emergency response services
- Equipment maintenance and upgrades
- Power quality management
- Power grid maintenance systems
Heat Supply and Environmental Services
- Overview
- Provides heat supply to regions and industries, achieving energy savings and reduced environmental impact.
- Competitiveness
- Abundant track record in heat supply and introduction of advanced environmental technologies
- Customers
-
- Urban development operators
- Commercial facilities
- Factories
- Condominium management associations
- Public facilities
- Local residents
- Environmental plant operators
- Products
-
- District heating and cooling services
- Industrial steam supply
- Waste heat utilization systems
- Renewable energy introduction support
- Environmental management services
- Heat source equipment maintenance
- CO2 emission reduction consulting
Energy-Related Technologies and Services
- Overview
- Develops technologies in the energy field and provides services utilizing IT.
- Competitiveness
- Fusion of advanced IT technologies and extensive on-site expertise
- Customers
-
- Public infrastructure operators
- Power-related companies
- IT and telecommunications companies
- General consumers
- Equipment contractors
- Industrial machinery manufacturers
- Products
-
- Energy management systems
- Electricity demand-supply information services
- IoT energy monitoring devices
- Smart home solutions
- Electrical equipment construction and inspection
- Technical consulting
- Renewable energy development support
Competitive Advantage
Strengths
- Second-largest domestic electricity sales volume and stable revenue base
- Efficient power source mix due to high nuclear power generation ratio
- Ownership of abundant hydropower and thermal power facilities
- Long track record in transmission and distribution infrastructure operations
- Ability to provide diverse energy solutions
- Broad customer base and strong customer relationships
- Advanced safety management system and technological development capabilities
- Regionally rooted service deployment
- Business diversification through collaboration with subsidiaries
- Extensive coverage of transmission network
- Active investment in renewable energy
- Comprehensive energy management services
- Flexible management strategy adapting to government regulations
- Robust crisis management and compliance systems
- Proactive engagement in coexistence and contributions to local communities
Competitive Advantages
- Highest domestic nuclear dependency, excelling in fuel cost reduction
- Possesses extensive transmission and distribution network for efficient electricity supply
- Flexible response possible with diverse power sources from hydropower to thermal and nuclear
- Maintains strong customer support in home region even after full electricity retail liberalization
- Diverse service deployment through subsidiaries like EneGate and Optage
- Ongoing investments in environmental technologies and hydrogen fuel for decarbonization
- Improves regulatory compliance and business efficiency through transmission and distribution separation
- Stability of generation capacity from large power plants and hydropower clusters
- Established advanced safety measures for nuclear power plants
- Comprehensive business entity capable of providing both electricity and gas
- Supply risk management capabilities based on long industry experience
- Strong brand power and credibility from long history
- Customer needs対応 through diverse sales channels
- Sustainable business development through ties with regional economy
- Comprehensive energy solution provision capabilities
Threats
- Risk of operational restrictions due to nuclear power safety issues
- Intensified competition and potential customer loss from electricity liberalization
- Risk of cost increases from fuel price fluctuations
- Risk of damage to facilities and supply networks from natural disasters
- Increased operational costs from strengthened environmental regulations
- Administrative guidance and penalties from regulatory agencies like the Japan Fair Trade Commission
- Market contraction from regional population decline and demand shrinkage
- Emergence of new competitors or alternative energies from technological innovations
- Brand image damage from loss of social trust
- Business management complexity from transmission and distribution separation
- Legal and trust loss risks from customer data leaks
- Increased financial burden from delayed investment recovery
Innovations
2023: Achieved Power Generation Technology Using 30% Hydrogen Fuel
- Overview
- Achieved 30% hydrogen fuel ratio in thermal power generation to promote decarbonization.
- Impact
- Achieves both fuel cost reduction and CO2 emission reduction
2024: Enabling Nuclear Plant Operation Beyond 60 Years
- Overview
- Realized extension of nuclear power plant operations with the enforcement of the GX Decarbonization Power Sources Act.
- Impact
- Strengthens stable electricity supply base
2022: Advancing Smart Meter Deployment
- Overview
- Deployed electronic smart meters across all areas to enhance demand-supply management.
- Impact
- Improves efficient electricity supply and customer convenience
2023: Renewable Energy Expansion Plan
- Overview
- Accelerating introduction of solar and wind power to strengthen environmental response.
- Impact
- Increases renewable energy ratio and reduces CO2 emissions
2024: Efficiency Improvement through Transmission and Distribution Separation
- Overview
- Separated transmission and distribution business to improve legal compliance and operational efficiency.
- Impact
- Enhances transparency and reduces operating costs
2021: IoT-Based Energy Management
- Overview
- Provides electricity consumption visualization services for homes and businesses.
- Impact
- Promotes energy savings and improves customer satisfaction
2020: New Wind Power Facility Construction
- Overview
- Started operations of new wind power plants in Awaji Island and Tahara City, Aichi Prefecture.
- Impact
- Expands renewable energy assets
2022: Introduction of Advanced Seismic Measures Technology
- Overview
- Introduced latest seismic safety technology to nuclear power plants to enhance safety.
- Impact
- Advances risk management and prevents accidents
2023: Expansion of Large-Scale Solar Power Facilities
- Overview
- Expanded solar power in Sakai City, Osaka Prefecture, and Wakasa region, Fukui Prefecture.
- Impact
- Improves renewable energy ratio
2021: Community-Coexistence Energy Supply Model
- Overview
- Developed integrated management system for electricity and heat supply in collaboration with local governments.
- Impact
- Enhances regional energy self-sufficiency and promotes sustainability
Sustainability
- Enhancing nuclear power plant safety and promoting long-term operations
- Actively promoting renewable energy introduction
- Focusing on setting and achieving CO2 emission reduction targets
- Reducing environmental impact and improving efficiency of transmission and distribution networks
- Sustainable operations through coexistence with local communities
- Promoting development of energy-saving services and technologies
- Waste recycling and environmental conservation activities
- Thorough reinforcement of compliance and transparency
- Advancing work-style reforms to maintain employee health
- Strengthening regional contribution activities and disaster support
- Diversifying fuel procurement for stable supply
- Promoting smart grid through new technology introduction