Hokuriku Electric Power

Basic Information

Stock Code
9505
Industry
Electric Power and Gas Industry
Category Detail
Electric Power & Gas
Prefecture
Toyama Prefecture
Establishment Year
May 1951
Listing Year
December 1952
Official Website
http://www.rikuden.co.jp/
TSE Information
TSE Information
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Other Companies
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Overview

Hokuriku Electric Power is a major power company in the electricity and gas industry based in the Hokuriku region, established in 1951, with strengths in hydroelectric power generation and regionally integrated services.

Current Situation

Hokuriku Electric Power recorded consolidated sales of approximately 6,394 billion yen, operating income of 178 billion yen, and net income of 68 billion yen for the fiscal year ended March 2021. It primarily supplies electricity centered on Toyama, Ishikawa, and Fukui Prefectures, with hydroelectric power serving as a key revenue pillar. While focusing on enhancing nuclear power facility safety, it maintains a balanced generation mix of thermal and renewable energy. It seeks to stabilize its revenue base through improved customer services and diversification of electricity retail. From a sustainability perspective, it actively invests in new energy businesses and strengthens contributions to local communities. Looking ahead, it aims to expand its gas business and build an efficient supply system leveraging digital technologies. While exploring collaborations with domestic and international competitors, it prioritizes contributions to sustainable regional economic development.

Trivia

Interesting Facts

  • Hokuriku Electric Power has a top-class number of hydroelectric plants among Japanese utilities.
  • Involved in concealing a criticality accident at Shika Nuclear Power Plant until 2007.
  • Regionally focused power company serving Hokuriku's three prefectures and parts of Gifu.
  • Delayed nuclear adoption nationally but proactive in renewables.
  • Decommissioned aging thermal plants in 2001 and 2004 to enhance environmental considerations.
  • Handles power procurement for Seven-Eleven Kanto region.
  • Developed unique corporate identity since the 1970s.
  • Supports local culture and sports promotion.
  • Member of the Electric Power Broad Regional Promotion Organization.
  • Actively involved in urban gas business in the Hokuriku region.
  • Legally separated transmission and distribution for efficient operations.
  • Implements biomass co-firing at multiple thermal plants.

Hidden Connections

  • Collaborates with local governments and companies to jointly advance regional energy policies.
  • Japan Master Trust Bank is a major shareholder contributing to capital stability.
  • Holds stakes in local TV and radio media to maintain regional information dissemination.
  • Cooperates with peers Chubu and Kansai Electric on transmission equipment operations.
  • Partnered with KDDI and SoftBank for discount services amid power liberalization.
  • Collaborates with domestic and international universities and research institutions on nuclear safety R&D.
  • Provides indirect economic benefits to Hokuriku's traditional industries and tourism.
  • Actively engages in exchanges with public institutions for regional disaster preparedness.

Future Outlook

Growth Drivers

  • Acceleration of renewable energy adoption amid strengthening environmental regulations
  • Expanded customer acquisition opportunities from electricity retail liberalization
  • Promoting community coexistence and smart community development
  • Business efficiency and new service development through DX
  • Enhanced energy demand-supply adjustment in decarbonization society
  • Strengthened customer base via urban gas collaborations
  • Advances in safe nuclear power operations
  • Service diversification considering aging society
  • Increased energy demand linked to regional industrial clusters
  • Market expansion from international climate policies
  • Accelerated R&D and pilots for low-carbon technologies
  • Strategic investments in new business areas

Strategic Goals

  • Raise renewable energy ratio above 30%
  • Achieve 50% CO2 reduction (vs. 2010)
  • Practicalize and promote smart grid systems
  • Provide co-created energy services with local communities
  • Realize over 100,000 bundled electricity-gas contracts
  • Revolutionize customer services via DX infrastructure
  • Achieve advanced efficiency and safety in transmission equipment
  • Restore social trust and ensure stable nuclear operations
  • Generate over 50 billion yen in new business revenue
  • Significantly improve ESG evaluations

Business Segments

Industrial Power Supply

Overview
Provides optimized power supply services to industries in the Hokuriku region, supporting energy cost reductions.
Competitiveness
Regionally tailored customization services
Customers
  • Manufacturing
  • Commercial Facilities
  • Factories
  • Local Public Facilities
  • Agricultural Corporations
  • Seafood Processing
Products
  • Large-Scale Power Contracts
  • High-Voltage Power Supply
  • Custom Energy Management
  • Peak Cut Services
  • Renewable Energy Utilization Promotion

Transmission and Distribution Systems

Overview
Provides high-quality power networks through subsidiaries handling safe and stable transmission and distribution operations.
Competitiveness
Enhanced collaboration post-legal separation for efficient operations
Customers
  • Electricity Retailers
  • Local Governments
  • Transmission and Distribution Network Managers
Products
  • Transmission Equipment Maintenance
  • Distribution Network Development
  • Smart Grid Construction
  • Equipment Monitoring Systems

Electrical Construction and Maintenance

Overview
Contributes to regional infrastructure through electrical construction and maintenance for buildings and facilities.
Competitiveness
Extensive regional experience and advanced technical capabilities
Customers
  • Construction Companies
  • Building Management Companies
  • Local Governments
  • Factory Equipment Management
Products
  • Electrical Equipment Design and Construction
  • Maintenance Services
  • Energy-Saving Retrofit Works

Gas Business

Overview
Through investment in Fukui City Gas, strengthens customer convenience with bundled gas and electricity sales.
Competitiveness
Competitive edge through energy bundle discounts
Customers
  • Residential Customers
  • Commercial Facilities
  • Factories
  • City Gas Supply Areas
Products
  • City Gas Supply
  • Gas Appliance Sales
  • Energy Bundle Discounts

Renewable Energy Development Support

Overview
Promotes renewable energy adoption and facility development with emphasis on community coexistence.
Competitiveness
Regional coordination and technological development capabilities
Customers
  • Local Governments
  • Corporations
  • Investors
Products
  • Solar Power Facility Design
  • Wind Power Equipment
  • Biomass Power Development

Energy Management Services

Overview
Optimizes customer energy use to reduce costs and environmental impact.
Competitiveness
Advanced data analysis and consulting expertise
Customers
  • Large Commercial Facilities
  • Public Facilities
  • Factories
  • Local Governments
Products
  • Energy Audits
  • Energy Efficiency Improvement Proposals
  • Smart Meter Services

Smart Grid Related Business

Overview
Develops services using ICT for next-generation power grid construction.
Competitiveness
Regional demonstration projects and operational experience
Customers
  • Local Governments
  • Electricity Retailers
  • Technology Partners
Products
  • Smart Meter Installation
  • Demand-Supply Adjustment Systems
  • ICT Utilization

Energy-Related Equipment Sales

Overview
Handles and promotes energy-saving and decarbonization equipment.
Competitiveness
Local sales and support network
Customers
  • Households
  • Businesses
  • Agents
Products
  • Solar Power Systems
  • EcoCute
  • EV Charging Equipment

Heat Supply Infrastructure Development

Overview
Advances CO2 reduction and regional energy circulation through efficient heat supply systems.
Competitiveness
System design leveraging regional environmental characteristics
Customers
  • Urban Development Operators
  • Commercial Facilities
  • Public Facilities
Products
  • District Heat Supply Equipment
  • Central Heating Systems
  • Heat Recovery Equipment Design

Communications Network Business

Overview
Supports regional infrastructure communications networks through subsidiaries.
Competitiveness
Stable services integrated with power infrastructure
Customers
  • Government Agencies
  • Corporations
  • General Customers
Products
  • Fiber Optic Communications
  • Internet Services
  • Network Construction Support

Environmental Services

Overview
Provides diverse services to reduce environmental impact and support sustainable regional development.
Competitiveness
Proven track record and trust through regional networks
Customers
  • Local Governments
  • Corporations
  • Community Organizations
Products
  • Waste Management
  • Environmental Consulting
  • Energy-Saving Services

Risk Management and Safety Audit Support

Overview
Provides support for compliance with power-related safety standards and risk management services.
Competitiveness
Expertise in nuclear power and rigorous management systems
Customers
  • Power Companies
  • Manufacturing
  • Public Institutions
Products
  • Safety Audits
  • Risk Assessments
  • Accident Prevention Measures

Competitive Advantage

Strengths

  • Strategic generation portfolio with strength in hydroelectric power
  • Regionally integrated customer services and sales base
  • High safety management standards and regulatory compliance capabilities
  • Diversified energy business operations
  • Strong capital base and financial stability
  • Efficient operations through independent transmission and distribution subsidiary
  • Active investments in renewable energy
  • Experienced technical staff and R&D capabilities
  • Trusted relationships with local communities
  • Flexible rate plans meeting customer needs
  • Strong industry collaborations and partnerships
  • Swift responses to regulations and policy changes
  • Focus on disaster preparedness and risk management
  • Pursuit of sustainable management
  • Broad regional coverage and supply stability

Competitive Advantages

  • Balanced high-efficiency operations combining hydro, thermal, and nuclear
  • Deep regional roots ensuring high customer satisfaction
  • Enhanced nuclear plant safety earning regulatory trust
  • Utilization of Hokuriku's unique geographical advantages for water resources
  • Transparent governance and disclosures securing investor confidence
  • Diverse electricity plans accommodating wide user segments
  • Proactive renewable integration ahead of environmental regulations
  • Operational efficiency and service quality improvements via transmission subsidiary collaboration
  • Accelerated new technology adoption through R&D focus
  • Brand strengthening via regional events and CSR activities
  • Maintained competitiveness amid retail liberalization
  • Customer retention through gas bundling strategies
  • Secured long-term equipment renewal and financial health
  • Regional corporate collaborations and innovation promotion
  • Stable capital relations with local investor participation

Threats

  • Intensifying domestic power market competition and price pressures
  • Stricter environmental regulations and CO2 reduction mandates
  • Social concerns and regulatory shifts regarding nuclear power
  • Facility outages and supply instability from disasters
  • Cost increases from international fuel price fluctuations
  • Rising new entrants due to power liberalization
  • Potential profitability decline from expanding renewables share
  • Declining regional power demand from population decrease
  • Impacts from regional economic stagnation and industrial shifts
  • Competitive disadvantage from delayed technological innovation
  • Growing burden of aging equipment renewals
  • Reduced subsidies and support from policy changes

Innovations

2024: Renewable Energy Expansion Project

Overview
Expanding wind and solar facilities to reduce environmental impact.
Impact
Contributes to 20% CO2 emissions reduction

2023: Smart Meter Deployment Enhancement

Overview
Rolling out smart meters region-wide to visualize electricity usage.
Impact
Encourages customer energy-saving behaviors and aids demand management

2022: Hydroelectric Efficiency Improvement Technology Introduction

Overview
Installing high-efficiency turbines in existing hydro plants to boost generation efficiency.
Impact
5% increase in annual generation

2021: Regional Heat Supply Network Expansion

Overview
Developing urban heat supply equipment for more efficient energy use.
Impact
15% improvement in heat supply volume

2020: IoT-Enhanced Transmission and Distribution Monitoring

Overview
Advanced anomaly detection systems for transmission equipment using IoT.
Impact
Successful reduction in accident rates

Sustainability

  • Maximizing hydroelectric utilization to advance low-carbon society
  • Enhancing transmission and distribution efficiency and energy-saving support services
  • Proactive renewable energy adoption and promotion
  • Promoting environmental protection activities in collaboration with local communities
  • Providing energy usage visualization services to customers
  • Energy efficiency through bundled gas sales
  • Waste reduction and recycling promotion activities
  • Promoting women's empowerment and diverse talent development
  • Sustained regional contributions through CSR activities
  • Continuous improvement of environmental management systems
  • Promoting introduction of energy-saving equipment and systems
  • Establishing safe and reliable energy supply framework