Measures to Address the Heavy-Load Winter Season for FY20222022/11/29

JERA Co., Inc. (“JERA”) has, based on this winter’s electricity supply-demand outlook, drawn up measures to address the heavy-load winter season (December 2022 to March 2023).

In light of expectations for an extremely tight electricity supply-demand balance, the government, at an 1 November meeting to review electricity supply-demand, decided on comprehensive measures to address electricity supply-demand for the winter of FY 2022.

In order to avoid fuel constraints and an electricity supply-demand crunch this winter, JERA, taking into account the measures indicated by the government, is moving forward with the following measures to secure kW (to secure power supply capacity, conduct targeted inspections of power generation facilities, etc.) and kWh (to secure electricity volume and fuel).

1. Measures to secure kW

1-1. Securing power capacity

To secure power supply capacity for this winter, JERA plans to avoid, wherever possible, scheduling thermal power plant repairs and inspections during the winter.

In addition, having been selected as a successful bidder in the public auction for additional power supply capacity conducted by general electricity transmission and distribution companies as a means of addressing supply-demand this winter, JERA secured additional winter supply capacity for Anegasaki Thermal Power Station Unit 5 (Ichihara City, Chiba Prefecture), Chita Thermal Power Station Unit 5 and Chita Daini Thermal Power Station Unit 1 (Chita City, Aichi Prefecture), and Yokkaichi Thermal Power Station Group 4 Unit 4 and 5 (Yokkaichi City, Mie Prefecture), all of which were under long-term planned shutdown. JERA has also secured Anegasaki Thermal Power Station Unit 6 (Ichihara City, Chiba Prefecture), which is under long-term planned shutdown, as an additional supply of power by concluding a power supply agreement with a general electricity transmission and distribution company based on discussions at the Ministry of Economy, Trade, and Industry’s Electricity and Gas Basic Policy Subcommittee.

JERA will also work to secure supply capacity this winter by steadily moving forward with the construction of thermal power plants now being built, and plans to start supplying electricity generated through trial operations at Anegasaki Thermal Power Station New Unit 1 in February 2023.

1-2. Targeted inspections of power generation facilities

In addition to strengthening internal systems, JERA is working to mitigate the risk of power generation facility outages through soundness checks and targeted patrols of boilers and other priority equipment.

2. Measures to secure kWh

2-1. Securing electricity volume

Having successfully bid to supply 1.2 TWh in the public auction of additional electricity supply volume conducted by general electricity transmission and distribution companies (excluding Okinawa) as a measure to address winter supply-demand, JERA is moving forward with preparations to supply electricity through the electricity market.

2-2. Securing fuel

Russia's invasion of Ukraine has created a challenging energy environment that remains highly unpredictable, as various countries’ efforts to divest from Russian supply lead to increased energy procurement competition and rising prices for LNG and other fuels.

Under these circumstances, JERA has quickly grasped the change in electricity supply-demand and been flexible in procuring a stable supply of fuel through its subsidiary JERA Global Markets Pte. Ltd. In addition, the Public-Private Liaison Meeting on Electricity and Gas Supply and Demand and Fuel (LNG) Procurement held on 21 November 2022 indicated that, in order to strengthen the fuel supply system, a regional and national fuel supply and demand framework should be coordinated to facilitate the supply of LNG among electric power and city gas utilities. Taking government measures into consideration, JERA will make its utmost effort to secure a stable fuel supply.

Through these measures to secure both kW and kWh, the JERA group is making every effort to secure a stable supply of energy.