Chugoku Electric Power
Basic Information
- Stock Code
- 9504
- Industry
- Electric Power and Gas Industry
- Category Detail
- Electric Power & Gas
- Prefecture
- Hiroshima Prefecture
- Establishment Year
- May 1951
- Listing Year
- August 1951
- Official Website
- https://www.energia.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- Remixpoint, Tokyo Electric Power Company Holdings, Chubu Electric Power, Kansai Electric Power, Hokuriku Electric Power, Tohoku Electric Power, Shikoku Electric Power, Kyushu Electric Power, Hokkaido Electric Power, J-Power
Overview
Chugoku Electric Power is a comprehensive energy company established in 1951 that primarily supplies electricity in the Chugoku region, with strengths in operating coal-fired power plants and focusing on sustainable energy supply.
Current Situation
Chugoku Electric Power recorded consolidated sales of approximately ¥1.3074 trillion and operating profit of approximately ¥34.3 billion for the fiscal year ended March 2021. It operates electricity retail and generation businesses in the Chugoku region as well as specific areas in parts of the Kanto region and Shikoku. It has strengths in power plant operations centered on coal-fired power and possesses a variety of generation facilities, including the Shimane Nuclear Power Plant and pumped-storage hydroelectric power plants. Currently, it has spun off its transmission and distribution business due to the separation of generation and transmission, and is working on reducing environmental impact and introducing energy-saving technologies. In recent years, management has promoted strengthening corporate governance and improving safety management, placing importance on collaboration with local communities. It is investing in expanding renewable energy fields and introducing new technologies, deploying a medium- to long-term strategy aimed at realizing a sustainable society. Although a surcharge issue arose due to an Antimonopoly Act violation in 2023, governance has been strengthened. Moving forward, it will play a role in energy structure reform, focusing on balancing stable supply with environmental measures.
Trivia
Interesting Facts
- Core company for electricity supply in the Chugoku region
- Company that began operating Japan's first domestically produced nuclear power plant
- Possesses advanced know-how in coal-fired power operations
- Promoting biomass co-firing at some power plants
- Known for regionally focused service deployment
- Operates its own brand 'EnerGia'
- Spun off transmission and distribution business in line with Japan's generation-transmission separation law
- Yamaguchi Prefecture is one of its major shareholders
- One of the companies with the highest self-generation ratio in the industry
- Advances technology development at EnerGia Comprehensive Research Institute
- Once suspended CMs during scandal revelations
- Many local banks and trust banks as shareholders
- Actively supports regional sports teams
- Manages long-term planned outage units at Shimane Nuclear Power Plant
- Focuses on efficiency and safety improvements through advanced technology introduction
Hidden Connections
- Origins in taking over the power business from Yamaguchi Prefectural Enterprise Bureau
- Overlapping electricity supply area with Shikoku Electric Power in Kagawa Prefecture's Naoshima area
- Jointly operates coal-fired power plants with Setouchi Thermal Power
- Established through merger of Japan Electric Generation and Transmission's Chugoku branch and Chugoku Distribution
- Numerous trust bank-affiliated shareholders, including Japan Master Trust Bank
- Major investor in regional broadcast stations in the Chugoku region
- Legal liability issues of former management filed in Hiroshima District Court
- Close cooperative relationship with regional administrative bodies, including Yamaguchi Prefecture
Future Outlook
Growth Drivers
- Expansion of renewable energy toward achieving a decarbonized society
- Strengthening stable supply system through collaboration with local communities
- Operational efficiency improvements via new technologies (AI and digitalization)
- Active investment in overseas and domestic new projects
- Dissemination of energy-saving and smart grid technologies
- Business efficiency gains from generation-transmission separation response
- Increased demand for facility upgrades due to environmental regulations
- Stable securing of large industrial demand
- Diverse power sources including biomass and offshore wind
- Flexible response to diversifying customer needs
Strategic Goals
- Expand renewable energy ratio to over 40%
- Reduce CO2 emissions by 30% (vs. FY2020)
- Promote digitalization and smartification of transmission and distribution networks
- Strengthen energy management in collaboration with local communities
- Expand biomass co-firing thermal power
- Continue safe operation of nuclear power plants
- Enhance management transparency and governance
- Contribute to building sustainable communities rooted in the region
- Achieve ¥50 billion in sales from new business areas
- Service innovation for improved customer satisfaction
Business Segments
Power Generation Facility Operations
- Overview
- Strengths in operating large-scale thermal power facilities centered on coal and LNG.
- Competitiveness
- Possesses highly durable and efficient coal-fired power operation technology.
- Customers
-
- Local Governments
- Industrial Parks
- Factories
- Manufacturing Companies
- Products
-
- Coal-Fired Power Generation
- LNG-Fired Power Generation
- Nuclear Power Generation
- Hydroelectric Power Generation
Electricity Retail
- Overview
- Offers electricity retail services to a wide range of industries.
- Competitiveness
- Regionally focused service provision and customizability.
- Customers
-
- Small and Medium Enterprises
- Commercial Facilities
- Public Facilities
- Factories
- Products
-
- Electricity Supply Services
- Rate Plan Proposals
- Energy Management
Renewable Energy Promotion
- Overview
- Renewable energy business aimed at reducing environmental impact.
- Competitiveness
- Technology development utilizing EnerGia Comprehensive Research Institute.
- Customers
-
- Local Governments
- Environmental Companies
- General Households
- New Energy Projects
- Products
-
- Solar Power Plants
- Offshore Wind Power Projects
- Biomass Power Generation
Transmission and Distribution Infrastructure Services
- Overview
- Transmission and distribution services provided through Chugoku Electric Power Network.
- Competitiveness
- Reliable and safe transmission and distribution network maintenance system.
- Customers
-
- Chugoku Electric Group
- Related Companies
- Regional Customers
- Products
-
- Transmission Facility Management
- Maintenance Services
- Facility Upgrades
Competitive Advantage
Strengths
- Advanced coal-fired power generation operation technology
- Regionally integrated stable supply system
- Diverse power generation facilities
- Strong customer base
- Technology development by EnerGia Comprehensive Research Institute
Competitive Advantages
- Consistently high self-generation ratio
- Strong brand recognition centered on the Chugoku region
- Comprehensive electricity supply services
- Stable resource procurement capabilities
- Scientifically based safety management system
Threats
- Increased operating costs due to stricter regulations
- Intense competition from rivals
- Power supply risks from natural disasters
- Impact of social trust issues
- Market fluctuations in fuel prices
- Competition from renewables
- Business structure changes due to decarbonization
- Legal constraints related to the Antimonopoly Act
Innovations
2022: Introduction of AI for Nuclear Plant Maintenance
- Overview
- Utilizing AI technology for maintenance work at Shimane Nuclear Power Plant to improve efficiency.
- Impact
- Achieved improved work efficiency and enhanced safety.
2021: Upgrade of LNG-Fired Power Facilities
- Overview
- Upgraded Unit 1 at Misumi Power Plant to combined cycle.
- Impact
- Significant improvement in generation efficiency and reduced environmental impact.
2023: Launch of Offshore Wind Power Project
- Overview
- Initiated offshore wind power business off Kitakyushu.
- Impact
- Increased renewable energy ratio.
2020: Legal Separation and Spin-Off of Transmission and Distribution Business
- Overview
- Specialization through establishment of Chugoku Electric Power Network Co., Inc.
- Impact
- Established efficient transmission and distribution management system.
2024: Promotion of Biomass Co-Firing Thermal Power
- Overview
- Expanded wood biomass co-firing at New Onoda Power Plant.
- Impact
- Reduced CO2 emissions and enhanced sustainability.
Sustainability
- Introduction of coal-fired improvement technologies to reduce CO2 emissions
- Promotion of expanded renewable energy adoption
- Active investment in biomass power generation
- Environmental conservation activities in coordination with local communities
- Safe and efficient advancement of decommissioning work