Tohoku Electric Power

Basic Information

Stock Code
9506
Industry
Electric Power and Gas Industry
Category Detail
Electric Power & Gas
Prefecture
Miyagi Prefecture
Establishment Year
May 1951
Listing Year
October 1951
Official Website
https://www.tohoku-epco.co.jp/
TSE Information
TSE Information
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Other Companies
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Overview

Tohoku Electric Power is a major electric utility founded in 1951 that provides comprehensive electricity services primarily in the Tohoku region, with strengths in thermal power generation and actively pursuing the restart of nuclear power plants.

Current Situation

Tohoku Electric Power achieved consolidated sales of approximately 2.6 trillion yen and operating profit of about 280 billion yen in the fiscal year ending March 2025, boasting the fifth-largest power sales volume in Japan centered on the seven Tohoku prefectures. While it has a high ratio of thermal power generation, it is advancing nuclear power restarts to diversify its power sources. It excels in disaster recovery capabilities, earning high praise for its response after the Great East Japan Earthquake. In response to the full liberalization of electricity retail in 2016, it has expanded power sales into the Kanto region. The transmission and distribution division is handled by Tohoku Electric Power Network following legal separation to ensure neutrality. It focuses on renewable energy businesses and new technology development, strengthening contributions to local society and the environment. Recently, under guidance from the Ministry of Economy, Trade and Industry, it adjusted a major electricity rate increase application and recorded record-high profits in fiscal 2024. Moving forward, it aims for stable power supply and sustainable growth, promoting decarbonization and diverse energy investments toward 2030.

Trivia

Interesting Facts

  • Tohoku Electric Power is the largest electric utility in the Tohoku region and ranks fifth in Japan in power sales volume.
  • Established under the 1951 Electric Utility Reorganization Act, it greatly contributed to post-war industrial development.
  • During the Great East Japan Earthquake, approximately 70% of its service area lost power, but it completed rapid restoration.
  • Adopts the world's highest-temperature 1,400°C-class combined cycle at its thermal power plants.
  • Onagawa Nuclear Power Plant underwent post-disaster safety measures and has restarted operations.
  • Actively investing in diverse renewables like solar and wind.
  • Deeply involved in Tohoku's regional economy and social activities, contributing across multiple sectors.
  • Operates a wide range of power-related businesses through multiple group companies.
  • Has long maintained its unique logo, established as a corporate brand.
  • Expanded into the Kanto region during the 2016 full electricity retail liberalization.
  • Transmission and distribution division legally separated in 2020 for independent operations.
  • Since 2005, applied for electricity rate increases due to rising fuel costs from nuclear shutdowns.
  • Conducts regional revitalization activities such as its unique 'Machizukuri Genki Juku'.
  • Strives to reduce environmental impact through construction of multiple high-efficiency thermal plants.
  • Received high regional acclaim for contributions to disaster recovery in affected areas.

Hidden Connections

  • Chair of Tohoku Regional Economic Federation is a Tohoku Electric Power alumnus, strengthening regional ties.
  • Established Synergia Power jointly with Tokyo Gas to enter Kanto retail market.
  • Tohoku Electric Power Network manages the grid for third parties due to legal separation.
  • Yurtec, handling wire manufacturing and equipment construction, belongs to Tohoku Electric Power Group.
  • Long negotiations with local fishing cooperatives led to Onagawa plant construction.
  • Mobilized around 200,000 personnel for power restoration after Great East Japan Earthquake.
  • One of the few domestic utilities maintaining a traditional logo.
  • Actively pursuing open technological innovation including venture capital investments.

Future Outlook

Growth Drivers

  • New customer acquisition from full electricity retail liberalization
  • Safe restart and expansion of nuclear power operations
  • Active introduction and business expansion of renewables
  • Development and adoption promotion of high-efficiency thermal technology
  • Operational efficiency via DX and smart grids
  • Expansion of diverse regionally tailored energy services
  • Response to stricter environmental regulations and decarbonization tech adoption
  • Growth through overseas power business and venture investments
  • Strengthened revenue base from stable transmission and distribution operations
  • Sustainable business advancement through regional collaboration
  • Revenue from power supply-demand adjustment markets
  • Expansion of energy-saving and conservation support services

Strategic Goals

  • Achieve over 40% renewable energy ratio
  • Enhance nuclear plant safety and improve capacity factors
  • Establish advanced power supply-demand optimization and stable supply system
  • Business operations toward carbon neutrality
  • New business sales exceeding 10% of total
  • Build co-creation model through strengthened regional economic ties
  • Promote business efficiency via digital technology
  • Develop diverse energy services for customers
  • Sustain neutrality and fairness in transmission and distribution
  • Promote employee diversity and work-life balance

Business Segments

Industrial Power Supply

Overview
Supplies stable industrial electricity to large industrial users and facilities.
Competitiveness
Regionally tailored services and abundant generation capacity
Customers
  • Manufacturing
  • Factories
  • Large-scale facilities
  • Public facilities
  • Railway companies
  • Commercial buildings
  • Local governments
  • Agricultural corporations
  • Universities and research institutions
  • Hospitals
Products
  • High-voltage power supply
  • Extra-high voltage contracts
  • Power supply-demand adjustment
  • Power trading
  • Supply-demand adjustment market

Renewable Energy Development and Sales

Overview
Develops, operates, and sells renewable energy projects.
Competitiveness
Advancement leveraging abundant local resources and technological capabilities
Customers
  • Local governments
  • Power generators
  • Corporations
  • Housing developers
Products
  • Solar power generation
  • Wind power generation
  • Geothermal power generation
  • Biomass power generation
  • Battery storage services

Transmission and Distribution System Operations

Overview
Responsible for stable operation and maintenance of transmission and distribution infrastructure.
Competitiveness
Fair and stable grid operations ensured by legal separation
Customers
  • Electricity retailers
  • Local residents
  • Government agencies
Products
  • Transmission and distribution services
  • Equipment maintenance
  • Power grid operations
  • Outage response services

Equipment Construction and Maintenance

Overview
Provides technical services related to construction and maintenance management of power equipment.
Competitiveness
Extensive on-site experience and engineer expertise
Customers
  • Power plants
  • Substations
  • Transmission and distribution operators
  • Corporations
Products
  • Equipment construction work
  • Maintenance inspections
  • Repairs and maintenance
  • Environmental surveys

Power-Related Manufacturing

Overview
Handles high-quality manufacturing of distribution and metering equipment.
Competitiveness
High-performance products based on long-accumulated technology
Customers
  • Power utilities
  • Power equipment manufacturers
  • Distributors
Products
  • Wire manufacturing
  • Electricity meter manufacturing
  • Distribution equipment manufacturing
  • Related parts manufacturing

Telecommunications Systems

Overview
Provides telecommunications systems integrated with power networks.
Competitiveness
Integrated system construction leveraging power grid knowledge
Customers
  • Telecom operators
  • Corporations
  • Public institutions
Products
  • Dedicated line services
  • Information system development
  • Equipment maintenance
  • Network construction

Gas Business

Overview
Stably supplies natural gas and liquefied natural gas to the region.
Competitiveness
Synergistic composite energy business leveraging electricity
Customers
  • Households
  • Factories
  • Commercial facilities
Products
  • Natural gas supply
  • LNG sales and delivery
  • Gas equipment maintenance

Real Estate Leasing and Management

Overview
Provides leasing and management services for owned real estate.
Competitiveness
Stable real estate operations tailored to the region
Customers
  • Corporations
  • Local governments
  • Individuals
Products
  • Real estate leasing
  • Office building management
  • Leasing business

Logistics and Materials Procurement

Overview
Efficiently manages fuel logistics and materials procurement.
Competitiveness
Broad network and efficient transportation system
Customers
  • Group companies
  • External customers
Products
  • Fuel receiving and storage
  • Material transportation
  • Materials procurement and management

Security and Facility Management

Overview
Implements management to ensure safety and environment of power-related facilities.
Competitiveness
High-specialty security expertise
Customers
  • Power facilities
  • Corporate buildings
  • Public facilities
Products
  • Security services
  • Facility management
  • Traffic guidance

Asset Management and Investment

Overview
Promotes investments in new businesses and expansion of overseas power operations.
Competitiveness
Strategic investments specialized in energy sector
Customers
  • Internal projects
  • External operators
Products
  • Venture capital investments
  • Overseas power project investments

Environmental Energy Promotion Support

Overview
Provides support contributing to reducing environmental impact and regional revitalization.
Competitiveness
Region-rooted environmental conservation expertise
Customers
  • Local communities
  • Local governments
  • Corporations
Products
  • Energy-saving consulting
  • Environmental survey and analysis services

Competitive Advantage

Strengths

  • Stable customer base from regional closeness
  • Diverse power sources centered on thermal generation
  • Nuclear power operation technology
  • Long-term disaster recovery capabilities
  • Advanced equipment maintenance technology
  • Diversified energy service offerings
  • Reliability of transmission and distribution grid via legal separation
  • Coordination and adjustment with Ministry of Economy, Trade and Industry
  • Active promotion of renewable energy business
  • Wide-area transmission and distribution network operations
  • Group synergies with key subsidiaries
  • Abundant assets and stable financial base
  • Advanced power supply-demand adjustment capabilities
  • Strong ties with regional economic federations
  • Brand strength and social trust

Competitive Advantages

  • Overwhelming market share in the seven Tohoku prefectures
  • Power generation diversity from varied facilities
  • Highly evaluated recovery efforts post-Great East Japan Earthquake
  • Neutral and fair operations in transmission and distribution via legal separation
  • Advanced investments in renewable energy business
  • Advancing new market development through Kanto expansion
  • Strategic resource allocation emphasizing sustainability
  • Advanced nuclear safety management and restart promotion
  • Comprehensive customer support and diverse plans
  • Comprehensive energy business coverage through consolidated subsidiaries
  • High regulatory compliance via coordination with Ministry of Economy, Trade and Industry
  • Enhanced regional contributions through regional economic federations
  • Long-term infrastructure investment plans
  • Revenue diversification via trading business
  • Proven track record in advanced technology adoption and digitalization

Threats

  • Rising fuel prices leading to cost increases
  • Equipment damage risks from natural disasters
  • Uncertainty in nuclear policy and stricter regulations
  • Intensified competition from electricity liberalization
  • Supply-demand imbalances from expanded renewable energy adoption
  • Impacts from energy policy changes and regulations
  • Business cost increases from strengthened environmental regulations
  • Decline in competitiveness from delayed technological innovation
  • Information security risks such as unauthorized access
  • Risk of deteriorating relations with local public entities
  • Demand contraction trends from population decline
  • Market share erosion by new entrants

Innovations

2024: Restart of Onagawa Nuclear Power Plant Unit 2

Overview
Achieved restart of Onagawa Unit 2 after enhanced safety measures, contributing to stable regional power supply.
Impact
Power source diversification through increased nuclear generation ratio

2023: Commercial operation start of Joetsu Thermal Power Station Unit 1

Overview
Put into operation an LNG thermal plant with the latest combined cycle technology, improving generation efficiency.
Impact
Improved thermal efficiency and CO2 emission reductions

2022: Solar power facilities and battery storage linkage project

Overview
Conducted power interchange experiments between regional government buildings to promote effective use of storage and solar.
Impact
Digital advancement in renewable energy utilization

2021: Noshiro Offshore Wind Farm commences operations

Overview
Installed large-scale offshore wind farm in Noshiromachi, Akita Prefecture, expanding wind power business.
Impact
Increased renewable energy generation capacity

2020: Legal separation of transmission and distribution division

Overview
Separated transmission and distribution for fairness and neutrality, establishing Tohoku Electric Power Network.
Impact
Improved reliability of transmission and distribution business

2025: New investments in venture capital funds

Overview
Strengthened investments in VC funds to foster new businesses and services, promoting open innovation.
Impact
Expansion of new businesses and technological innovation

2023: Introduction of advanced equipment monitoring system

Overview
Built real-time monitoring system for generation equipment using AI and IoT, improving maintenance efficiency.
Impact
Improved uptime and failure prevention

2024: Advancement of fuel diversification plan

Overview
Promoted diversification and stabilization of fuel procurement through LNG, coal co-firing, and biomass fuel introduction.
Impact
Reduced fuel risks and environmental impact

Sustainability

  • Gradual increase in renewable energy ratio
  • High-efficiency thermal power and CO2 emission reductions
  • Strengthened collaboration with local communities
  • Promotion of smart grid technology adoption
  • Advancement of waste recycling and resource circulation
  • Expansion of energy-saving support services
  • Environmental education and local awareness activities
  • Reinforcement of transmission equipment against earthquakes and flooding
  • Promotion of green procurement
  • Advanced power interchange systems
  • Promotion of women's empowerment and diverse talent development
  • Further strengthening of nuclear safety