Okinawa Electric Power

Basic Information

Stock Code: 9511
Industry: Electric Power and Gas Industry
Category Detail: Electric Power & Gas
Prefecture: Okinawa Prefecture
Establishment Year: May 1972
Listing Year: September 1989
Official Website: https://www.okiden.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Okinawa FG, Tokyo Electric Power Holdings, Chubu Electric Power, Kansai Electric Power, Chugoku Electric Power, Hokuriku Electric, Tohoku Electric Power, Shikoku Electric, Kyushu Electric Power, Hokkaido Electric Power, J-Power

Overview

Okinawa Electric Power is a regional monopoly power company established in 1972, primarily engaged in thermal power generation centered in Okinawa Prefecture.

Current Situation

Okinawa Electric Power recorded consolidated sales of approximately 190.5 billion yen and operating profit of approximately 12.6 billion yen for the fiscal year ended March 2021, playing an indispensable role in regional power supply. Its supply area is limited to Okinawa Prefecture only, making it one of Japan's smallest power companies. The majority of its power generation relies on thermal power, creating a structure vulnerable to fluctuations in oil and natural gas prices. For environmental considerations, it is promoting biomass co-firing and the introduction of wind power facilities, while benefiting from fuel tax exemptions under special measures. It places emphasis on collaboration with the local community, with the employee stock ownership association and local governments listed as major shareholders. The transmission and distribution business is not connected to other regions, maintaining the only integrated transmission, distribution, and generation operations. Moving forward, it will focus on feasibility studies for small-scale nuclear power introduction and expansion of renewable energy, aiming for stable supply deeply rooted in the region.

Trivia

Interesting Facts

Japan's only power company without a nuclear power plant
Okinawa Prefecture is its sole supply area
Special case exempt from legal separation of transmission and distribution business
Operates many tiltable wind power facilities
Employee stock ownership association holds significant shares as a major shareholder
Transitioned from a special public corporation under the Okinawa Development Special Measures Law to a corporation
Local governments participate as shareholders in regionally rooted management
Only operator not connected to the wide-area power operation promotion organization
Pioneering environmental measures with biomass co-firing power generation
Internal venture established a rum distillery on Minamidaito Island
Tarama Island wind power contributes to regional power stability
Benefits from tax exemptions on part of coal power at Ishiken Thermal Power Station
Operates power stations with consideration for local natural environment
ISO 9001 and ISO 14001 certifications obtained at multiple power stations
Listed on the Tokyo Stock Exchange in 1992, late among power companies

Hidden Connections

Okinawa Prefecture governor is a major shareholder, with strong ties to regional administration.
Supplies electricity to U.S. military bases in Japan, connecting to defense-related business.
Capital and business alliances with regional companies like Okinawa Cellular Telephone.
Only company affiliated with both the transmission grid council and the Federation of Electric Power Companies.
Internal venture involved in rum production as a tourism resource.
Okinawa Electric Power Group pursues diversified management linked with information and communications business.
Focuses on new renewable energy business through Okinawa New Energy Development.
Television relay station installed on the chimney of Makikou Thermal Power Station.

Future Outlook

Growth Drivers

Business diversification through renewable energy promotion
Deepening regionally rooted services and strengthening customer base
Increasing demand for technological innovation to address decarbonization society
Progress in small modular reactor introduction feasibility study
Efficiency improvements in integrated transmission and distribution operations and new technology introduction
Demand for emission reduction technologies due to strengthened environmental regulations
Stable expansion of electricity demand accompanying regional economic growth
Promoting smart grid普及 through ICT utilization
Risk diversification through fuel diversification
Deployment of regional revitalization measures in collaboration with local governments
Technical sharing and collaboration through transmission and distribution grid council
Customized services tailored to customer needs

Strategic Goals

Achieve renewable energy ratio of over 25%
Start demonstration for practical small modular reactor implementation
Digitize transmission and distribution equipment and promote smart grids
Reduce CO2 emissions by 40% compared to 2020
Build strong partnerships with local communities
Optimize and diversify fuel procurement costs
Diversify customer services and improve convenience
Achieve 10 billion yen in sales from new business areas
Strict compliance with environmental, social, and governance (ESG) standards
Employee development and creating fulfilling workplaces

Business Segments

Corporate Electricity Supply

Overview

Provides highly stable electricity and energy-saving plans to companies and public institutions.

Competitiveness

Deep understanding of regional-specific needs and rapid response capabilities

Customers

Large Industrial Customers
Government Agencies
U.S. Military Bases in Japan
Commercial Facilities
Hospitals and Schools
Public Facilities
Factories and Manufacturers

Products

High-Voltage Electricity Services
Demand-Supply Adjustment Services
Energy Management

Transmission and Distribution Business

Overview

Operates transmission and distribution throughout Okinawa Prefecture to ensure high reliability.

Competitiveness

Nation's only integrated operation system and stability from special measures

Customers

Local Residents
Business Operators
Power Developers
Electricity Operators

Products

Transmission Network Maintenance and Management
Distribution Equipment Maintenance
Demand-Supply Balance Management

Equipment Construction and Maintenance

Overview

Specialized services for construction and maintenance management of power equipment.

Competitiveness

Construction capabilities through regional closeness and group collaboration

Customers

Okinawa Electric Power Group Companies
Local Governments
Commercial Facilities

Products

Power Plant Construction
Transmission and Distribution Equipment Installation
Maintenance Services

Information and Communications Business

Overview

Supports ICT infrastructure through collaboration with telecommunications business.

Competitiveness

Comprehensive strength in combined communications and power infrastructure

Customers

Okinawa Telephone Network (OTnet)
Local Telecommunications Operators
Corporations

Products

Network Construction
Communications Infrastructure Operations
System Development

New Energy and Environmental Business

Overview

Focuses on environmentally considerate energy development.

Competitiveness

Renewable energy deployment tailored to regional characteristics

Customers

Local Governments
Industry
Renewable Energy Developers

Products

Biomass Co-Firing Power Generation
Renewable Energy Sales
Environmental Consulting

Real Estate Business

Overview

Manages land and facilities to support stable revenue.

Competitiveness

Effective utilization of regional assets

Customers

Okinawa Electric Power Group
Local Companies
Local Governments

Products

Land Development
Facility Leasing
Management Services

Internal Ventures and New Business Support

Overview

Promotes nurturing of regionally rooted new businesses.

Competitiveness

New business creation linked to regional resources

Customers

Grace Rum
Internal Development Teams

Products

Rum Production Support
Business Creation Support

Competitive Advantage

Strengths

Stable electricity supply through regional monopoly
Power generation mix combining thermal and wind power
Efficiency from integrated transmission and distribution operations
Strong ties with local governments
Fuel tax exemption from special measures
Network of business sites across Okinawa Prefecture
Synergies from diverse group companies
Practical implementation of environmentally considerate power generation technology
Promotion of renewables through wind power
New business creation via internal ventures
Loyal local customer base
Employee participation in management through stock ownership association
Strengthened collaboration with information and communications business
Retention of the only integrated transmission and distribution system
Stable financial foundation

Competitive Advantages

Exclusive supply system covering all of Okinawa Prefecture
Customized responses to regional needs
High-reliability power securing centered on thermal power
Flexibility in fuel procurement through diverse fuel compatibility
Operational efficiency from integrated management without separating transmission and distribution
Reduced operating costs from special measures
Stable management base from investments by government and local authorities
Advanced introduction of renewable energy facilities
Strong commitment to regional collaboration and economic contributions
Capital and business alliances with local companies and financial institutions
Comprehensive infrastructure services integrated with information and communications networks
Revenue diversification through diverse business segments
Sustainable operations compliant with environmental regulations
Competitive edge from utilizing region-specific legal measures
Innovation creation through internal venture promotion

Threats

Rising fuel prices leading to cost increases
Risk of power infrastructure damage from natural disasters
Uncertainty of climate change impacts on wind power
Competitive pressure from new entrants due to electricity liberalization
Growth limitations from narrow regional market
Increasing burden of maintenance and renewal costs for aging equipment
Risks from changes in government regulations or environmental policies
Persistent high supply costs in remote islands
Fluctuations in legal risks for exemption from transmission and distribution separation
Rapid changes in alternative energy technologies
Insufficient development of wide-area power interconnections

Innovations

2023: Practical Implementation of Laser-Based Rust and Salt Removal Technology

Overview: Laser technology developed by Okiden Kogyo efficiently removes salt damage from bridges and towers.
Impact: Extends equipment lifespan and reduces maintenance costs.

2021: Commercial Operation Start of Tarama Tiltable Wind Power Facility

Overview: Introduces tiltable wind turbines tailored to regional characteristics to expand renewable energy.
Impact: Contributes to increasing the region's renewable energy ratio.

2020: Introduction of LNG Combined Cycle Power Facility

Overview: Introduces high-efficiency LNG thermal power at Yoshinoura Thermal Power Station to reduce environmental impact.
Impact: Improves power generation efficiency and reduces CO2 emissions.

2022: Implementation of Biomass Co-Firing Demonstration Experiment

Overview: Co-fires woody biomass fuel in coal-fired power to advance environmental measures.
Impact: Confirms CO2 emission reduction effects.

2024: Start of Feasibility Study for Small Modular Reactor Introduction

Overview: Participates in research and development of small reactors to address the challenge of lacking nuclear power.
Impact: Expected to build foundation for future stable energy supply.

Sustainability

Promoting biomass co-firing to reduce environmental impact
Expanding renewable energy through multiple wind farms
Strengthening environmental management with ISO 14001 certification
Reducing fuel costs by utilizing special fuel tax measures
Promoting efficient maintenance of transmission and distribution equipment
Business operations emphasizing coexistence with local communities
Promoting technical collaboration through participation in transmission and distribution grid council
Diversification through new business creation by internal ventures
Enhancing transparency via publication of environmental action reports
Advancing renewable energy development utilizing local resources
Implementing energy-saving support programs for the region
Providing energy-saving support plans for large users