Response to tighter regulations and thermal power efficiency standards associated with decarbonization

「Amid these circumstances, and in response to changes in the business environment that exceeded expectations, the Company's group company ㈱シーテック re-evaluated the viability of its offshore wind power projects in three areas and, following discussions among the business partners, decided to discontinue development. As a result, a loss was recognized in the current consolidated fiscal year.」

「The Group also deliberates on material risks associated with climate change at the Risk Management Committee, chaired by the president, reflects them in its management plans, and implements appropriate measures after approval by the Board of Directors. Against this backdrop, in response to changes in the business environment that exceeded expectations, the Group's C-Tech Corporation decided on 27 August 2025 to discontinue development of its offshore wind power projects in 3 offshore areas: off Noshiro City, Mitane Town and Oga City in Akita Prefecture; off Yurihonjo City in Akita Prefecture; and off Choshi City in Chiba Prefecture, following a reassessment of project viability and discussions among the project partners. Accordingly, a loss was recognized in the current interim consolidated accounting period. However, additional losses may arise as the withdrawal proceeds.」

「Specifically, the Group aims to develop more than 3.2 million kW of renewable energy capacity around 2030, including capacity owned, constructed and maintained. It will also mobilize every available measure, including utilization of the Hamaoka Nuclear Power Station with safety improvements and the trust of local communities given the highest priority, establishment of hydrogen and ammonia supply chains, a 20% ammonia conversion demonstration test at Unit 4 of the Hekinan Thermal Power Station toward establishing ammonia conversion technology, the closure and retirement of inefficient coal-fired power generation, further efficiency improvements in thermal power generation, more sophisticated power grid facilities and operations to expand the amount of renewable energy that can be connected, wide-area supply-demand operations, and diversification of CO2-free rate plans including MIRAIZ Green Electricity, to achieve a reduction of at least 50% by 2030 from fiscal 2013 in CO2 emissions from electricity sold to customers.」

「具体的には，2030年頃に向けた再生可能エネルギーの拡大目標（保有・施工・保守含む）に関し，320万kW以上を目指すとともに，安全性の向上と地域の皆さまの信頼を最優先にした浜岡原子力発電所の活用，水素・アンモニアサプライチェーンの構築，非効率石炭火力発電のフェードアウト，火力発電のさらなる高効率化，需給運用の高度化・広域化，ＣＯ２フリーメニューの多様化などのあらゆる施策を総動員し，「2030年までに，お客さまへ販売する電気由来のＣＯ２排出量を2013年度比で50％以上削減」を達成する。」

「However, if the Group is unable to appropriately transform its business model in light of trends in non-fossil value and technological innovation, in addition to responding to future regulatory measures, its financial position, operating results and cash flows may be affected.」

「Specifically, the Group will mobilize every available measure, including the development of new renewable energy capacity of more than 2 million kW around 2030, utilization of the Hamaoka Nuclear Power Station with safety improvements and the trust of local communities given the highest priority, the phaseout of inefficient coal-fired power generation, further efficiency improvements in thermal power generation, co-firing of non-fossil fuels such as ammonia, more sophisticated and wide-area supply-demand operations, and diversification of CO2-free rate plans, to achieve a reduction of at least 50% by 2030 from fiscal 2013 in CO2 emissions from electricity sold to customers. In addition, through the commercialization and adoption of innovative technologies through innovation, the Group will pursue the challenge of achieving net-zero CO2 emissions across its entire business by 2050.」

「Under the Chubu Electric Power Group Basic Environmental Policy, the Group has formulated an Action Plan and is working through all available measures, including expanded use of renewable energy, to reduce CO2 emissions and pursue an optimal energy mix. It is also promoting energy conservation and aims to contribute to the realization of a low-carbon society on a global scale through thorough environmental management. However, business performance may be affected by changes in circumstances, including tighter environmental regulations in the future.」

「As a participating company in the Council for a Low-Carbon Society in the Electric Power Industry, a voluntary framework through which participating electricity companies work to reduce greenhouse gas emissions, we must work toward achieving the Council's targets and aim to improve thermal power generation efficiency and the utilization ratio of non-fossil energy sources under the Energy Conservation Act and the Act on Sophisticated Methods of Energy Supply Structures, as amended in April 2016.」

「The Group established the Chubu Electric Power Group Basic Environmental Policy and, in accordance with its Action Plan, a specific action plan, is pursuing an optimal energy mix and energy conservation and aims to contribute to the realization of a low-carbon society on a global scale through thorough environmental management. However, business performance may be affected by changes in circumstances, including tighter environmental regulations in the future.」

「In February 2016, 36 electricity companies, including our company, established the Council for a Low-Carbon Society in the Electric Power Industry, a voluntary framework for efforts to reduce greenhouse gas emissions. In April 2016, the Energy Conservation Act and the Act on Sophisticated Methods of Energy Supply Structures were amended, establishing standards for thermal power generation efficiency and the utilization ratio of non-fossil energy sources.」