Japan's Tokyo Electric Power Company (Tepco) aims to become an innovative global energy and technology company, according to its president, Tomoaki Kobayakawa. He stressed the company will continue providing strong support for the restoration of Fukushima.
Tepco is Japan's largest power company, supplying energy to the greater Kanto area, including the country's two biggest cities, Tokyo and Yokohama. As well as the damaged Fukushima Daiichi plant, Tepco also owns the Fukushima Daini and Kashiwazaki-Kariwa nuclear power plants.
Speaking at a press conference held on 16 February at the Federation of Electric Power Companies of Japan, Kobayakawa said Tepco faces challenges posed by the deregulation of Japan's energy markets, the country's declining population, and the need to continue clean-up work in Fukushima Prefecture.
Tepco will continue its transformation from a local utility into an innovative global energy and technology company, partnering with other leaders around the world, Kobayakawa said.
Tepco aims to increase its revenue by JPY500 billion (USD4.7 billion) per year, generating a total of JPY450 billion in profit over the next decade.
Kobayakawa said this would be achieved through streamlining businesses and cost reduction, reorganisation and integration of nuclear power and distribution, as well as forming alliances with partners. Tepco will create businesses in new areas, which will create a value chain from fuel upstream to thermal generation and bundling the sale of electricity and natural gas.
Kobayakawa said Tepco's parent company - Tepco Holdings - will create a management committee during the coming fiscal year to formulate a detailed plan for achieving its aim.
"Our main mission is guaranteeing the delivery of a stable supply of low-cost electricity to customers," he said. "Within that mission, nuclear power is not everything. Thermal power, the procurement of renewable energy, and hydropower all play a part."
"Renewables are an essential component of our future," Kobayakawa said. "We believe we can scale up our renewables business to create a new source of revenue comparable to JERA."
JERA is a 50/50 joint venture formed between Tepco and Chubu Electric Power Company in April 2015. The main business areas of JERA are: upstream fuel investments; fuel procurement; fuel transportation; fuel trading; replacement and construction of domestic thermal power plants; overseas power generation and energy infrastructure.
However, Kobayakawa stressed the focus on the future will not come at the expense of Tepco's obligations to its past. Noting the steady improvement of the situation both inside the damaged Fukushima Daiichi nuclear power plant and in the surrounding area, Kobayakawa affirmed the corporate mission to rebuild communities and restore the trust of the residents, including efforts to support the sale of products from Fukushima Prefecture.
In May 2012, the Japanese government approved amendments to Tepco's ten-year special business plan which effectively puts it under state control. Under the amendments, the government provided Tepco with JPY1 trillion in state funds in return for a 51% stake in the company.
In 2014, Tepco was reorganised into two main sections: a power generation business and a separate division dedicated to decommissioning the Fukushima Daiichi site.
A further reorganisation followed in April 2016, with Tepco being structured under Tepco Holdings. Its fuel and thermal generation operations were placed in a subsidiary called Tepco Fuel and Power Incorporated; its power transmission and distribution business became Tepco Power Grid Incorporated; and its electricity retail operations became Tepco Energy Partner Incorporated. Its nuclear-related operations remained within the holding company.
Researched and writtenby World Nuclear News