Business Strategy

Securing the Value Chain by Overwhelming Competitiveness
Marketing Our Strengths as Services

Future challenges such as decreasing energy demand in Japan (due to factors such as a decreasing population and the expansion of energy conservation measures) and the widespread introduction of renewable energy sources are predicted to gradually shrink the market size of the Japanese thermal power industry and subject TEPCO to intense competition. Nonetheless, as the Japanese thermal power industry will remain a core business of TEPCO in the future, it is essential to consider measures to increase corporate value in such an intense business environment.
Firstly, we will acquire overwhelming competitiveness in the Japanese thermal power industry and ensure the value chain ((1) Thermal Power Asset Business, (2) O&M Reform). These measures enable us to pursue business expansion and development using the know-how and assets of a strengthened TEPCO, and improve corporate value ((3) O&M Services, (4) New Business Projects). Next, creating a virtuous cycle of the areas (1) to (4) indicated above by linking the know-how obtained through business expansion and development to our competitiveness in the Japanese thermal power industry and similar effort will provide us with both cost competitiveness and the creation of new added value.

Strengthening of Thermal Power Asset Business by Increasing Efficiency of Our Facilities

TEPCO continues to increase the efficiency of thermal power generation facilities by measures such as improvement works for gas turbines in order to decrease fuel costs. Instead of replacing all the power generation facilities, we are planning to use the existing facilities and improve them. Our goal is to increase our power generation efficiency while reducing costs and times required.
In the future, we want to secure new revenue sources by using existing assets and to increase our corporate value. Our short-term plan involves expanding the optimal economic operations, wholesale of electricity, and wholesale of gas. On the other hand, our long-term plan focuses on the electricity markets of the future and the creation of an optimal power supply portfolio.

Systematization, Normalization, and Standardization of Power Station Operation Know-How

Our aim is to become a world-class operator of thermal power stations and develop new business projects for the global market. In order to achieve that, we are conducting a Value-up Project (O&M reform) at all our thermal power stations. We have been striving to decrease fuel, repair, and other costs while doubling productivity by reducing the processes required for periodic inspections and by reforming our procurement system.
Our goal is to strategically digitalize and systematize the operation data, inspection data, and other know-how we have accumulated thus far. This will allow us to meet global standards and create new business models.

Providing Systematized Power Station Operation Know-How

Our thermal power asset business and O&M reform efforts are not meant to stay restricted to our company. We will turn those reforms into services we can market and expand abroad through regulation and standardization. Our aim is to expand those business operations mainly to Southeast Asia and also to other regions around the world including the Middle East and the United States. We will expand those services to become part of our core businesses.
By marketing the technologies and know-how we have accumulated over the years through the operation of our power stations, TEPCO will increase our sources of revenue and also expand the operational approaches for Fuel & Power stations in order to contribute to the advancement of operation and maintenance methods for thermal power stations abroad with a focus on emerging economies. Our contributions include thermal efficiency improvement, minimization of operation stop time after malfunctions or incidents, and improvement of environmental protection measures.

Strengthening of Thermal Power Asset Business by Increasing Efficiency of Our Facilities

Since our goal is to continue increasing our corporate value, we are developing new business projects to expand our businesses beyond the electric power industry. We are looking for business opportunities that will allow us to fully utilize our existing assets including electricity, heat, CO2, and land with the aim of creating business projects that will ensure sustainable growth.

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