Measures to Address the Heavy-Load Winter Season for FY20232023/11/29
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 2023–March 2024).
Held on 31 October, the 66th meeting of the Ministry of Economy, Trade, and Industry’s Basic Policy Subcommittee on Electricity and Gas presented the electricity supply-demand outlook for this winter and decided on measure to address electricity supply-demand for the winter of FY2023.
JERA, aiming to avert both fuel constraints and an electricity supply-demand crunch this winter, is moving forward with the following measures to secure kW (secure power supply capacity, conduct targeted inspections of power generation facilities, etc.) and to secure kWh (secure fuel).
1. Measures to Secure kW
• Securing Power Capacity
To secure power capacity for the FY2023 winter season, wherever possible we are scheduling repair and inspection of thermal power stations to avoid the winter season.
Steadily moving forward with the construction of state-of-the-art thermal power facilities as part of planned replacements, we have already begun commercial operations at 6 units (4.32 million kW), securing additional supply capacity.
Also, we have secured winter season supply capability by cancelling the long-term planned shut-down at Hirono Thermal Power Station Unit 2, an aging thermal power facility.
• Targeted Inspections of Power Generation Facilities, Etc.
In addition to strengthening internal systems, JERA is working to mitigate the risk of power generation facility outages by conducting soundness checks and targeted patrols of boilers and other priority equipment.
2. Measures to Secure kWh
• Securing Fuel
It is recognized that this year's supply and demand of LNG is in the direction of easing due to the warm winter forecast in Japan and the trend of high natural gas stocks in Europe. On the other hand, the situation still remains unpredictable as JERA recognizes that the situation may change drastically, such as a drastic change in the procurement environment due to an increase in demand and poor LNG production.
Under these circumstances, JERA procures a stable supply of fuel by quickly grasping changes in electricity supply-demand and flexibly optimizing procurement and resale through our subsidiary JERA Global Markets Pte. Ltd.
On 24 November 2023, JERA also received notice from the Ministry of Economy, Trade, and Industry of its approval as an authorized supplier under the Strategic Buffer LNG* framework. Between December 2023 and February 2024, JERA will secure one cargo of SBL per month to be supplied as requested by the ministry.
Through these measures to secure both kW and kWh, the JERA group is making every effort to secure a stable supply of energy.
* Strategic Buffer LNG (SBL): Surplus LNG that exceeds the quantity an authorized supplied is expected to require for its own regular operations, and that is sold to domestic entities designated by the Ministry of Economy, Trade, and Industry when deemed necessary by the ministry.