Tokyogasgroup csr report

Enhancement of Energy Security

Development of the Electric Power Business

With more now expected of natural gas following the 2011 Great East Japan Earthquake and full liberalization of the gas and electricity retail markets having unleashed major changes in Japan's energy industry, Tokyo Gas Group recognizes that stable access to low-priced energy stands high on the list of the public's concerns and it is committed to developing its electric power business to meet these expectations.

Expansion of Competitive Generating Capacity

Expansion of Generating Capacity
Amid the major changes afoot in the energy environment, including reforms to the electric power and gas systems, Tokyo Gas believes in the importance of delivering total solutions combining gas and electricity to supply energy in a manner that matches customer needs better than ever before. This depends on securing stable access to power sources, and to this end we are exploring the development of a "power source portfolio" that combines natural gas power plants with sources of electricity generated using other fuels.

Developing the foundations of our electric power business
Tokyo Gas has the largest total generating capacity of any of the new entrants to the electricity market. In 2020, we will expand the generating capacity in which we have a stake from 1,600 MW at present to about 3,000 MW as we put in place the infrastructure to ensure supply stability. We are promoting the construction of power plants that use natural gas in order to further develop the foundations of our electric power business, and in doing so we are paying particular attention to the following considerations in order to ensure stability of supply: (1) proximity to areas of demand, (2) mitigation of environmental load through use of leading-edge high-efficiency combined cycle power generation facilities, and (3) attainment of efficient and stable operation leveraging synergies achieved by locating plants in the vicinity of our LNG terminals.
With the entry into service of Unit 3 of the Ohgishima Power Station in February 2016, Tokyo Gas Group now has stakes in power plants operated by Tokyo Gas Baypower (100 MW, wholly owned by Tokyo Gas), Tokyo Gas Yokosuka Power (240 MW, 75% stake), Kawasaki Natural Gas Power Generation (420 MW x 2 units, 49% stake), and Ohgishima Power (400 MW x 3 units, 75% stake). It has also decided to receive the entire output (approximately 1,200 MW) of the Moka Power Station, which Kobelco Power Moka Inc. (a wholly owned subsidiary of Kobe Steel, Ltd.) is preparing to build in Moka, Tochigi Prefecture. (The plant's first unit will be completed in late 2019, and its second in early 2020.) In May 2015, we established a new company called Chiba-Sodegaura Energy Co., Ltd. to explore development of coal power plants with Idemitsu Kosan Co., Ltd. and Kyushu Electric Power Company Inc.
Alongside using natural gas to generate electricity, we are helping to promote wider use of renewables. We have our own wind power facility at the Sodegaura LNG Terminal, and we have joined other wind power generation projects by investing in Shonai Wind-Power Generation Co., Ltd. (giving us a 30.2% stake) and purchasing electricity generated by Kuroshio Furyoku Hatsuden K.K. In February 2017, we entered a capital and business tie-up with Shizen Energy Inc., a developer of solar power and other renewable resources, and together we will be conducting development work with the aim of creating 60 MW of solar power generating capacity as soon as possible.

The Tokyo Gas Group's Electricity Supply Infrastructure (as of June 2017)

The Tokyo Gas Group's Electricity Supply Infrastructure (as of June 2017)
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Stable generation of electricity
The Group's thermal power plants use natural gas produced at our LNG terminals. These plants are operated, monitored, and undergo daily checks and periodic inspections to ensure continued supply stability. Looking ahead, we will continue to leverage our expertise in the gas business to meet society's demands and expectations as a total energy company by delivering more affordable electricity while doing our best to maintain safety, ensure supply stability, and protect the environment.

▶ Contribution to the Environment / Efforts in the Electric Power Business

The Tokyo Gas Group's Electricity Supply Infrastructure (as of June 2017)
DFF Inc., Corporate Social Responsibility Sect, General Administration Dept., Corporate Planning Dept., Resources & Global Business Division, Energy Solution Div, Power Buisiness Dept., Pipeline Network Division, IT Division, Residential Sales Div., Fundamental Technology Dept., Energy Solution Div, Environmental Affairs Dept., Purchasing Dept. , Health Insurance & Employees' Welfare Sect., Personnel Dept., Internal Audit Dept., Audit & Supervisory Board Member's Office, Compliance Dept., Regional Development Div., Finance Dept, TGES, TOKYO GAS COMMUNICATIONS, INC.