EREX
Basic Information
- Stock Code
- 9517
- Industry
- Electric Power and Gas
- Category Detail
- Electric Power & Gas
- Prefecture
- Tokyo
- Establishment Year
- December 1999
- Listing Year
- December 2014
- Official Website
- https://www.erex.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- Grimes, Kyoritsu Information Communications, Tokyo Electric Power Company Holdings, Chubu Electric Power, Kansai Electric Power, Chugoku Electric Power, Hokuriku Electric Power, Tohoku Electric Power, Shikoku Electric Power, Kyushu Electric Power, Hokkaido Electric Power, J-Power, Renova
Overview
EREX is a major new electric power company established in 1999, an advanced enterprise in the electricity and gas industry with strengths in nationwide retail electricity business and stable supply through its own power generation.
Current Situation
EREX achieved a turnaround to profitability in the fiscal year ending March 2025, with net sales of 171.2 billion yen and operating income of 7.1 billion yen. Amid market expansion due to electricity deregulation, it supplies power to approximately 1,300 facilities centered on Kyushu, Kanto, and Tohoku, with growing demand from private companies. It owns renewable energy facilities such as its own biomass power plants and promotes environmental impact reduction. Overseas expansion is planned, including the operation of commercial biomass power plants in Vietnam. It undertakes initiatives aligned with the Sustainable Development Goals (SDGs) and measures against electricity futures price fluctuation risks. Major customers span a wide range of fields including government offices, and it is strengthening its sales network through an agency system. Moving forward, it aims for stable growth through the introduction of new technologies and expansion of its customer base.
Trivia
Interesting Facts
- Pioneer among new power companies with nationwide supply record
- Operates multiple biomass power facilities domestically and internationally
- Rare sales model expanding market through agency network
- Office in Kyobashi, Chuo-ku, Tokyo is in an environmentally friendly building
- Successfully resolved reverse spread in power sales in 2025 and turned profitable
- Early filer as a specified scale electricity retailer following deregulation
- First commercial biomass power operator in Vietnam
- Abundant supply record to government offices and educational facilities
- Also issues renewable energy certificates
- Actively engages in price fluctuation risk management in electricity futures market
- Originally named Nichitan Energy in early days
- Gooi Coast Energy is a related company jointly invested with Hitachi
- Supplies power to facilities of diverse customer segments
- Capital of 11.1 billion yen, approximately 213 employees, solid management
- Deploys new power supply in major electricity districts nationwide
Hidden Connections
- Receives technical support through joint investments with Hitachi Ltd. and Chisso Petrochemical
- Established a marketing company through joint investment with Tokyo Electric Power Energy Partner
- Mitsubishi Corp listed as major shareholder, strong financial support
- Potential collaboration with major power companies like Tohoku Electric Power in biomass sector
- Strong industry network as a member of the Wide-area Operation Promotion Organization for Energy
- Influential membership in various industry associations related to renewable energy
- Deep ties with local administrations through power supply record to municipalities
- Characteristic competitive deployment in regions different from Hokuriku Electric Power and Kyushu Electric Power
Future Outlook
Growth Drivers
- Strengthened national policy for renewable energy dissemination
- Increasing corporate environmental awareness and energy-saving demand
- Further expansion of deregulated electricity market
- Expansion of power generation business in overseas emerging markets
- Maturation of electricity futures market and demand for risk management
- Promotion of environmental value certificate utilization
- Expansion of smart grid technology introduction
- Service expansion through customer diversification
- Establishment of market base through strengthened regional collaboration
- Increased new business opportunities from regulatory relaxation
- Technological innovation toward low-carbon society realization
- Business collaboration through strengthened partnerships
Strategic Goals
- Expansion of supply share in major regions nationwide
- Achievement of over 50% renewable energy ratio
- Aggressive expansion of overseas power generation business
- Promotion of market optimization in collaboration with Ministry of Economy, Trade and Industry
- Expansion and monetization of environmental value certificate sales
- Deepening of electricity price risk management services
- Nationwide expansion and efficiency of agency network
- Reinforcement of sustainable power generation facilities
- Maintenance and strengthening of medium- to long-term financial soundness
- Promotion of environment-related CSR activities
Business Segments
Power Sales to Companies and Government Offices
- Overview
- Provides power sales and related services to diverse corporate customers.
- Competitiveness
- Nationwide sales network in collaboration with agencies
- Customers
-
- Government offices
- Office buildings
- Kindergartens
- Junior high schools
- High schools
- Universities
- Hospitals
- Golf courses
- Roadside stores
- Retail businesses
- Products
-
- Retail electricity contracts
- Power supply-demand management
- Energy management services
- Renewable energy supply
- Customized plans
- Rate plan proposals
- Environmental value certificates
- Contracted power adjustment
- Renewable energy certificate sales
- Equipment maintenance
Renewable Energy Power Generation Facilities Business
- Overview
- Operation and management of power generation facilities mainly centered on biomass power generation.
- Competitiveness
- High-efficiency biomass technology and multi-regional deployment
- Customers
-
- Green power purchasing companies
- Electricity wholesale market
- Local governments
- Environmental consultants
- Power generation equipment manufacturers
- Various funds
- Overseas investors
- Energy brokers
- Factories and manufacturers
- Energy policy organizations
- Products
-
- Biomass power plant operations
- Joint power generation projects
- Overseas power projects
- Environmental value creation
- Facility maintenance management
- New facility planning
- Efficiency improvement technology introduction
- Partner alliances
- Renewable energy investment consulting
- Effective resource utilization
Electricity Price Risk Management
- Overview
- Financial products and services to mitigate customers' price fluctuation risks.
- Competitiveness
- Specialized expertise and market linkages
- Customers
-
- Retail electricity providers
- Electricity wholesale market participants
- Supply-demand adjustment providers
- Large-scale consumers
- Hedge funds
- Products
-
- Electricity futures trading
- Price fluctuation insurance contracts
- Risk assessment services
- Price simulation tools
Competitive Advantage
Strengths
- Nationwide retail electricity network
- Ownership of own biomass power generation facilities
- Ability to serve diverse customer segments
- Sales channels utilizing agencies
- Risk management capabilities in electricity futures trading
- Proven supply record rooted in regions
- Renewable energy utilization with environmental consideration
- Flexible rate plan settings
- Market experience from early entry into new power sector
- Trusted relationships with government offices
- Track record of power generation projects in multiple regions
- Start of commercial power operations overseas
- Stable financial base
- Expansion of asset scale
- Corporate stance aligned with SDGs
Competitive Advantages
- Broad coverage of supply areas across regions
- Stable supply system combining own generation and retail
- Expertise in environmentally friendly generation centered on biomass
- Rapid market expansion through agency network
- Numerous long-term contracts with government offices and educational institutions
- Reliability from abundant facility supply experience
- Coordination and application capabilities with the Ministry of Economy, Trade and Industry
- Advanced electricity price risk management
- Diversified revenue through overseas expansion
- Strong capital structure and financial system
- Flexibility to meet needs with diverse power plans
- Regionally rooted service provision
- Sustainable improvement activities on the technology front
- Quick response to changes in market environment
- Securing a customer base with high environmental awareness
Threats
- Intensifying competition in the deregulated electricity market
- Price competition with major electric power companies
- Risk of sharp fuel price fluctuations
- Impacts from legal and regulatory changes
- Risk of technological obsolescence in generation facilities
- Risk of supply disruptions due to natural disasters
- Decrease in renewable energy subsidies
- Price instability in electricity futures market
- Political and economic risks in overseas operations
- Seasonal demand fluctuations and supply adjustment difficulties
- Increase in entry by notable new entrants
- Potential fluidity in customer base
Innovations
2023: Biomass Power Plant Operations Start in Vietnam
- Overview
- Started operation of the country's first commercial biomass power plant, expanding overseas business.
- Impact
- Revenue enhancement and technology accumulation through overseas market entry
2025: Enhanced Management of Electricity Futures Price Fluctuation Risks
- Overview
- Introduced new financial products to hedge against electricity price fluctuation risks.
- Impact
- Improved financial stability and strengthened revenue base
2024: Introduction of Biomass Generation Efficiency Improvement Technology
- Overview
- Achieved CO2 emission reductions through improved fuel efficiency at power plants.
- Impact
- Contributes to environmental impact reduction and cost savings
2022: Expansion of Agency Sales Channels
- Overview
- Accelerated acquisition of corporate customers by expanding nationwide agency network.
- Impact
- Market share expansion and revenue growth
2021: New Development of Green Power Plan
- Overview
- Launched new power plan utilizing renewable energy.
- Impact
- Successfully acquired environmentally conscious customer segments
2020: Launch of Energy Management Support for Customers
- Overview
- Began providing tools to optimize customer power consumption.
- Impact
- Improved customer satisfaction and enhanced competitiveness
Sustainability
- Promotion of renewable energy utilization expansion
- Development of efficient biomass fuel utilization technology
- Setting and progress management of CO2 emission reduction targets
- Environmental conservation activities in collaboration with local communities
- Promotion of environmental value certificate utilization
- Thorough compliance with environmental laws and regulations
- Active sales of green power plans
- Contribution to building a sustainable society
- Pursuit of resource-recycling business model
- Strengthened environmental education for employees
- Introduction of energy-saving equipment
- Measures to ensure stability of power supply