Chubu Electric Power

Chubu is investing in activities such as CCS, hydrogen, biojet fuel and Vehicle to Grid electrification. Details of profitability, growth potential and deployment schedule are lacking which calls into question the company’s ability to develop at a large scale these activities. Chubu is also expanding its renewable business in Europe through the joint acquisition of Eneco with Mitsubishi Corporation, an integrated energy company in the Netherlands, in March 2020. Chubu plans to expand its renewable capacity by 2 GW by 2030, in 2020 the company had 3.130 GW of renewable capacity.

Scope 3 emissions now represent more than 99% of Chubu’s total emissions. It plans to reduce its absolute emissions from electricity sold to its customers (covering scope 1 and 3 emissions) by 50% by 2030 compared to 2013 and to reduce the scope 3 emissions intensity from purchased goods and services by 35% by 2030 compared with 2013. Previously, Chubu had a scope 1 emissions intensity target that it no longer considers relevant given it transferred its thermal assets to Jera, a partly owned subsidiary. However, Chubu plans to reduce the emissions intensity of thermal power plants by 20% as set by the Japanese government’s Long-Term Energy Supply and Demand Outlook by 2030.

Some of Chubu’s research and development (R&D) projects focus on the electrification of vehicles, storage batteries, rapid heating device and energy saving for die casting factories and renewable energy-compatible energy storage system for solar PV. Chubu is also conducting demonstration tests of mixed combustion with ammonia at high-efficiency coal power plants. However, Chubu does not disclose financial information on its investments in R&D to mitigate climate change which is essential to assess whether it will be able to drive emissions reductions especially since it is not planning to phase out from coal.

Chubu has two emissions reduction targets from electricity sold to its customers (covering scope 1 and 3 emissions). It plans to reduce its absolute emissions by 50% by 2030 compared to 2013 and to reduce its emissions intensity by 35% by 2030 compared with 2013. It is also committed to reach net-zero by 2050. 

Chubu plans to increase its renewable capacity by 2 GW by 2030 against 3.130 GW in 2020. In the short and medium term, Chubu will focus on hydro, biomass and onshore wind power while the focus will be on offshore wind and geothermal power in the long term.

Chubu has allocated JPY 100 billion (USD 1 billion) for renewable projects in its 2019-2023 investment plan which represents 25% of the total investment plan. The rest is allocated to overseas business and new growth, including power transmission and distribution investments among other projects.

Between 2015 and 2020, Chubu’s scope 1 and 2 emissions intensity decreased by approximately 22%, which is almost aligned with what is required by its 1.5°C pathway. The decrease is due to the gradual retirement of low-efficient coal thermal power generation.

Chubu focuses on the development of CCS technologies for coal plants as well as co-firing processes with hydrogen and ammonia. R&D and capital expenditure figures would be essential to reinforce the company’s credibility that these technologies will effectively drive emissions reductions.