(E36432) Stock Price

Tokyo Electric Power Renewable Power is a company specializing in renewable energy generation. It operates approximately 10 million kilowatts of total capacity, centered on hydroelectric power, along with wind and solar power generation. The company was established in 2020 when Tokyo Electric Power Holdings separated its renewable energy business, and it is one of Japan's largest renewable energy operators, providing comprehensive services from power plant planning and construction to operation and maintenance.

The company's primary revenue comes from selling electricity generated by its power plants. Customers include power retailers and general transmission and distribution operators, with group companies such as Tokyo Electric Power Energy Partner serving as important sales channels. The company also generates revenue from power plant maintenance services and new power source development and investment projects both domestically and internationally.

The company currently focuses on domestic hydroelectric power as its core business while expanding offshore wind power and overseas hydroelectric operations. By fiscal year 2030, it plans to develop 6 to 7 million kilowatts of new capacity centered on offshore wind power, with a target of annual net profit of approximately 100 billion yen. For international expansion, the company is advancing operations through subsidiaries and affiliated companies in Asian countries including Singapore, Vietnam, and Indonesia.

Tokyo Electric Power Renewable Power is a renewable energy specialist company that serves as the core of the Tokyo Electric Power Holdings Group's decarbonization strategy. The company has set an ambitious growth target, with a clear numerical goal to achieve annual net profit attributable to parent company shareholders of approximately 10 billion yen by fiscal year 2030. Leveraging its position as one of Japan's largest hydroelectric power operators, the company is pursuing significant business expansion. To achieve this goal, beyond strengthening its existing domestic hydroelectric power business, the company is actively investing in overseas hydroelectric power and offshore wind power, which it positions as future core businesses.

The company's differentiation strategy centers on maximizing the technical expertise and know-how accumulated through decades of domestic hydroelectric power operations. Utilizing its strength of owning approximately 10 million kilowatts of installed capacity domestically, the company continuously implements repowering of aging hydroelectric facilities to increase power generation and improve equipment reliability. For pumped-storage hydroelectric power in particular, the company is maximizing value as an adjustable power source that becomes increasingly important with expanded renewable energy deployment. It has successfully created new revenue streams through transactions in the demand-supply adjustment market and a new "power custody service" for new power retailers. The company is also diversifying its business base by supplying power to corporate customers through physical corporate PPAs utilizing existing hydroelectric facilities.

Offshore wind power development is the highest priority strategy for market expansion. Domestically, the company is steadily advancing fixed-bottom offshore wind power projects off Ejima in Sasebo, Nagasaki Prefecture, while also focusing on acquiring floating offshore wind technology for anticipated future growth. Through a floating offshore wind technology research consortium and joint demonstration projects in Norway, the company is pursuing technology development that simultaneously reduces costs and risks. In overseas expansion, the company is creating added value in hydroelectric power projects in Vietnam, Georgia, and Indonesia by applying domestically accumulated expertise. It has also achieved tangible results, including winning renewable energy support scheme auctions for floating offshore wind projects in the United Kingdom.

Regarding technology innovation, the company prioritizes operational efficiency and competitive strengthening through digital transformation. The company has realized productivity improvements by combining traditional operations and maintenance expertise with digital technology, including implementing predictive monitoring systems for equipment troubles using IoT sensors and AI, and operationalizing remote inspections using autonomous drones with satellite communications. The company is also maximizing revenue from existing facilities through coordinated operation of multiple dam groups to optimize watershed-wide operations and developing power increase systems using AI. On the funding side, the company is steadily strengthening its capital procurement foundation for growth investments, including issuing 40 billion yen in green bonds in December 2024.