Delays and deteriorating profitability in renewable energy projects
First written in FY2016. 7 of 18 entries say "Worsened", first in FY2019-Q2. Latest entry: 2026-06-04.
Astmax moved to the "Worse" side of this theme in 2018.
0 other companies' latest entry also says "Restated".
- 2026-06-04RestatedGeneral Meetings of Shareholders
「Because the assumptions included in the business plan involve a high degree of uncertainty, if the business plan requires substantial revision and the profitability of the relevant asset group declines, an impairment loss may be recognized from the following consolidated fiscal year onward.」
The geothermal power generation development business continues to involve uncertainty regarding grid connection, permits and approvals, construction costs, the start of operations, generation volume, electricity prices and operating costs. - FY2026-H1WorsenedAnnual report
「In addition to higher construction costs, there is also the possibility of future increases in power plant operating costs. We had therefore been considering the establishment of an optimal implementation structure for the project, including financing.」
For the geothermal power business, the possibility of future increases in operating costs, in addition to construction costs, has been indicated, making it necessary to reconsider the optimal implementation structure and financing. - FY2024WorsenedAnnual report
「Regarding the additional grid connection capacity required as a result of the expansion, we are still proceeding with the relevant procedures to secure grid capacity. At the same time, in light of uncertainty over the timing of grid connection and higher construction costs due to inflation and other factors, we are also considering a review of the plan, including expansion of transmission capacity.」
For the expansion of the geothermal power project, in addition to uncertainty over the timing of grid connection, higher construction costs due to inflation and the need to review the plan have been indicated. - FY2024-Q2WorsenedAnnual report
「However, because the project was newly designated as being in an area subject to the collective review process for distribution grids, we will continue working to secure grid capacity in accordance with the schedule for this process.」
For the expanded geothermal power project, the area was newly designated as subject to the collective review process after the application was submitted, adding uncertainty regarding the procedures and schedule for securing grid capacity. - FY2024-Q1MitigatedAnnual report
「Meanwhile, although no spare capacity remained available for the interconnection capacity following the expansion of the project, we are working to secure grid access on the assumption that we will use non-firm connections to the local grid, for which applications opened on 1 April 2023.」
The lack of available capacity for the grid connection capacity required after the expansion has continued, but an alternative means of securing grid capacity through non-firm connections has taken concrete shape. The process of securing grid connection capacity itself has not been completed. - FY2023-Q3SoftenedAnnual report
「Meanwhile, no available capacity has continued to be available under the current system for the grid connection capacity required after the expansion. However, various discussions, including possible changes to the system for grid use, are under way, such as the planned start of applications for non-firm connections on local grids from 1 April 2023. We will continue working to secure grid capacity while monitoring developments.」
The lack of available capacity for the grid connection capacity required after the expansion has continued, but alternative systems and measures for securing grid capacity, including the planned start of applications for non-firm connections, have been identified. Grid connection capacity has not been secured. - FY2022-Q3WorsenedAnnual report
「Regarding grid connection capacity after the expansion of the planned capacity, the bundled review process for power-source connection projects concluded in December 2021 without being established.」
The procedure to secure grid connection capacity for the expanded geothermal power project was unsuccessful, bringing the project's grid capacity risk to the forefront. - FY2020-Q3MitigatedAnnual report
「The project in Kirishima, Kagoshima Prefecture, which had been under construction, was completed in November 2019.」
The Kirishima project, which had been delayed due to a change in the construction schedule, was completed in November 2019, reducing the delay affecting the project. - FY2020-Q2WorsenedAnnual report
「Operations were expected to start in March 2018, but following a change to the construction schedule, the start is now expected in November 2019 or later.」
The scheduled start of operations for the approximately 2.2 MW project in Kirishima, Kagoshima Prefecture, was pushed back further, from October 2019 or later in the previous update to November 2019 or later. - FY2019WorsenedAnnual report
「Operations were initially expected to begin in March 2018, but the schedule changed and are now expected to begin in October 2019 or later. After operations begin, ASTRA社 will provide management and operational services.」
The scheduled start of operations for the approximately 2.2 MW project in Kirishima, Kagoshima Prefecture, was pushed back further, from March 2018 to October 2019 or later, increasing the risk of delay. - FY2019-Q3MitigatedAnnual report
「Although the schedule for this project, in which we made a silent partnership investment in an SPC on 27 October 2017, changed because of weather and the time required for site preparation work, construction was completed and the property was handed over in December 2018.」
The previously delayed Nakatsu project reached completion and handover in December 2018, reducing delay risk for that project. However, the Kirishima project was still expected to begin operations in 2019 or later, so delays across the business had not been resolved. - FY2019-Q2WorsenedAnnual report
「Nakatsu, Oita Prefecture; output capacity: approximately 2.3 megawatts. We made a silent partnership investment in an SPC on 27 October 2017. Operations for this project were initially expected to begin in April 2018, but the schedule changed because of weather and the time required for site preparation work, and operations are scheduled to begin in November 2018.」
The planned start of operations for the Nakatsu project was postponed from April 2018 to November 2018. The Kirishima project was also expected to begin operations in 2019 or later, and delays continued. - FY2019-Q1MaterialisedAnnual report
「Operations for this project, in which we made a silent partnership investment in a limited liability company on 27 October 2017, were initially expected to begin in April 2018. However, the schedule changed because of weather and the time required for site preparation work, and operations are now scheduled to begin in August or September 2018.」
The approximately 2.3-megawatt project in Nakatsu, Oita Prefecture experienced delays in starting operations due to weather and site preparation work. For the Kirishima project, the start of operations also remained expected in 2019 or later. - FY2018-Q2MaterialisedAnnual report
「Operations were initially expected to begin in March 2018, but the schedule changed because site preparation work took longer than expected, and operations are now expected to begin in 2019 or later.」
For the Kirishima project, the delay in land development procedures was resolved, but the planned start of operations was postponed because site preparation work took longer than expected, and project delay risk actually materialized. - FY2017MitigatedAnnual report
「As previously disclosed, procedures related to land development had been delayed, but were completed in October 2016, allowing construction to begin.」
For the approximately 2.2-megawatt project in Kirishima, Kagoshima Prefecture, the previous delay in land development procedures was resolved and construction began. - FY2017-Q3MitigatedAnnual report
「Kirishima, Kagoshima Prefecture; output capacity: approximately 2.2 megawatts. As reported in the annual securities report for the fiscal year ended March 2016, procedures related to land development had been delayed, but were completed in October 2016, allowing construction to begin.」
For the Kirishima project, the previous delay in land development procedures was resolved and construction began. However, this does not state that risks across the renewable energy business, including other projects, have been eliminated. - FY2017-Q1RestatedAnnual report
「We are preparing to begin construction as soon as the procedures related to land development are completed. However, because the timing of completion remains uncertain due to delays in the procedures and construction start, we continue to explore both sale and in-house ownership options.」
Delays in land development procedures and construction commencement, as well as uncertainty regarding the completion date, have continued. - FY2016MaterialisedAnnual report
「Although we hold rights under the Renewable Energy Feed-in Tariff Scheme for certain solar power generation facilities and other assets planned for sale, the sale of projects delayed by procedures related to land development did not proceed as planned.」
Delays in grid connection, upfront costs and depreciation expenses combined to result in operating revenue of ¥461 million and a segment loss of ¥302 million in the renewable energy business.