Renewable Energy Business: Permitting, Grid Interconnection and Development Delays
First written in FY2023. 2 of 6 entries say "Worsened", first in FY2024-Q1. Latest entry: FY2025-H1.
Rvh moved to the "Worse" side of this theme in 2023.
1 other company's latest entry also says "Materialised".
- FY2025-H1MaterialisedAnnual report
「On the cost side, most selling, general and administrative expenses, including personnel expenses and outsourcing expenses, decreased compared with the same period of the previous year as the scale of the agrivoltaic power generation business was substantially reduced. As a result, losses narrowed year on year.」
The substantial reduction in the scale of the agrivoltaic power generation business related to delays and plan revisions in the renewable energy business is reflected in actual business operations and the cost structure. - FY2024MaterialisedAnnual report
「In the renewable energy business of the Group, if reaching agreement with landowners and local residents in areas where projects are planned, or obtaining permits for the temporary conversion of agricultural land, takes longer than anticipated, or if the government's energy policy or direction changes, laws are amended, power connections, including grid interconnections, are delayed as a result, construction of facilities is delayed by major fluctuations in weather or climate, or wind power generation equipment deteriorates or fails, the project schedules initially planned may be delayed, potentially affecting the Group's operating results and financial condition.」
The previously disclosed risks of prolonged grid interconnection work and delays in reaching agreement materialized as the abandonment of most solar power generation projects, unsuccessful transfer negotiations, and a substantial shortfall in revenue compared with the initial plan. - FY2024-Q3RestatedAnnual report
「株式会社ＢＳ ＥＮＥＲＧＹ, which promotes this business, continued efforts to develop and monetize agrivoltaic power generation facilities, as in the previous fiscal year. However, because the construction period required for grid interconnection work for connecting to the power grid is expected to be extended, and reaching agreement with the parties concerned in the planned development areas is taking longer than anticipated, it remains difficult to achieve the initial business plan.」
The Company states that the extension of the grid interconnection construction period and delays in reaching agreement with the parties concerned in the planned development areas continue to make it difficult to achieve the initial business plan. - FY2024-Q2WorsenedAnnual report
「Because the construction period required for grid interconnection work for connecting to the power grid is expected to be extended, and reaching agreement with the parties concerned in the planned development areas is taking longer than anticipated, the Company decided not to proceed with 1 of the 3 projects for which it expected to generate revenue in the fiscal year ended March 2024. For the remaining 2 projects, which have been combined with projects scheduled for development from 2025 onward into a single project, the Company is also considering transferring the project at this stage.」
The extended grid interconnection construction period and delays in reaching agreement with the relevant parties have resulted in 1 of 3 projects being abandoned, the remaining projects being combined, and consideration being given to transferring the project. - FY2024-Q1WorsenedAnnual report
「The Company is reviewing the development schedule and development areas because the construction period required for grid interconnection work for connecting to the power grid is expected to be extended, and reaching agreement with the relevant parties in the planned development areas is taking longer than initially anticipated, among other reasons.」
In addition to the previously disclosed extension of the grid interconnection construction period, reaching agreement with the relevant parties in the planned development areas is also taking longer than initially anticipated, resulting in a review of the development schedule and areas. - FY2023First statedAnnual report
「For certain projects in the renewable energy business, an electric power company notified the Company that the required construction period for grid connection work was expected to be approximately 10 months longer than the period initially notified.」
In the renewable energy business, the Company received notice from the electric power company that the construction period for grid interconnection work is expected to be approximately 10 months longer than initially notified. It has also newly disclosed as business risks project delays arising from reaching agreement with landowners and local residents, obtaining permits for the temporary conversion of agricultural land, policy changes, weather, equipment failures and other factors.