Hokkaido Electric Power Company, Incorporated (9509.T) Bundle
Explore how Hokkaido Electric Power Company, Incorporated (9509.T), founded in 1951 and headquartered in Sapporo, is redefining regional energy by blending legacy generation assets with bold transformation: in March 2025 it launched Hokkaido Renewable Energy Aggregation Co., Ltd. (HRA) with Mitsubishi Corporation to scale local renewables, its revised Management Vision 2035 frames the "Realization of GX for Hokkaido's Growth" and a push to "Create New Value," and its participation in the Tomakomai CCS project targets storage of 1.5-2.0 million metric tons of CO₂ per year while October 2024 amendments to the Articles of Incorporation expanded HEPCO's remit into agriculture, healthcare and financial services-signals of a utility turning mission ("Create the future of energy and new value by transformation"), vision and core values of Challenge, Co‑creation, Trust into measurable, region‑shaping action that warrants a deeper look into strategy, governance and sustainability initiatives.
Hokkaido Electric Power Company, Incorporated (9509.T) - Intro
Hokkaido Electric Power Company, Incorporated (9509.T) is a regional electric utility headquartered in Sapporo, Hokkaido, established in 1951. The company operates a diversified generation portfolio spanning hydroelectric, thermal, nuclear (Tomari plant historically), geothermal, and photovoltaic sources and has been progressively pivoting toward decarbonization and regional revitalization initiatives.- Founded: 1951
- Headquarters: Sapporo, Hokkaido
- TSE Ticker: 9509.T
- Recent strategic focus: Carbon neutrality, renewables aggregation, regional growth
| Item | Detail |
|---|---|
| Management Vision | Management Vision 2035 - 'Realization of GX for Hokkaido's Growth', 'Challenge of Creating New Value', 'Robust Business Foundation for Sustainable Growth' |
| JV for Renewables | Hokkaido Renewable Energy Aggregation Co., Ltd. (HRA) - joint venture with Mitsubishi Corporation (est. March 2025) |
| CCS Project (Tomakomai) | Target annual CO₂ capacity: 1.5-2.0 million metric tons (collaboration with Japan Petroleum Exploration Co. and Idemitsu Kosan) |
| Articles Amendment | Expanded business scope to include agriculture, healthcare, and financial services (amended October 2024) |
| Regional Commitment | Support for 'Zero Carbon Hokkaido' and local industrial/energy transition |
- Provide reliable, safe, and affordable electricity to Hokkaido residents and businesses.
- Advance decarbonization and contribute to regional resilience and economic vitality.
- Realization of GX (Green Transformation) for Hokkaido's growth - accelerate deployment of renewables and low-carbon technologies.
- Challenge of creating new value - diversify into non-electric sectors and energy-related services to enhance regional ecosystems.
- Robust business foundation for sustainable growth - strengthen governance, financial resilience, and operational reliability.
- Safety and reliability - maintain grid stability and customer trust across all weather and seasonal extremes.
- Sustainability - commit to carbon neutrality targets and invest in CCS, renewable aggregation, and distributed generation.
- Regional partnership - collaborate with public, private, and community stakeholders to drive local economic development.
- Innovation and diversification - pursue new businesses (agriculture, healthcare, financial services) as enabled by the October 2024 Articles amendment.
- Transparency and governance - uphold fairness and accountability in corporate decision-making and stakeholder engagement.
- Renewables aggregation (HRA): aggregate distributed renewable generation across Hokkaido to improve dispatchability and market participation (JV launched March 2025).
- CCS (Tomakomai): develop capture, transport, and storage infrastructure targeting 1.5-2.0 million tCO₂/year to support national 2050 carbon neutrality.
- Business portfolio expansion: leverage amended Articles (Oct 2024) to pilot projects in agriculture, healthcare, and financial services tailored to regional needs.
- Grid modernization: investments in transmission reinforcement, digital dispatch, and resilience measures suited to Hokkaido's climate and load profile.
- Corporate governance focus: transparency, fairness, efficient management and enhancement of corporate value.
- Stakeholder engagement: collaboration with Mitsubishi Corporation (HRA JV), JX Nippon / others on CCUS-related activities, local governments and communities.
Hokkaido Electric Power Company, Incorporated (9509.T) - Overview
Hokkaido Electric Power Company, Incorporated (9509.T) centers its corporate purpose on a clear mission: 'Create the future of energy and new value by transformation.' This mission drives HEPCO's pivot from a traditional regional utility toward an integrated energy and services company aiming to deliver sustainable value for customers, communities and Hokkaido's regional economy.- Mission focus: continuous transformation to meet changing energy demand, reduce emissions, and create new business value for the region.
- Strategic alignment: revisions to Management Vision 2035 and establishment of HRA (Hokkaido Renewable Alliance / transformation frameworks) to accelerate decarbonization and digitalization.
- Operational intent: balance stable supply (grid reliability, seasonal peak management) with growth in renewables, distributed energy, and customer-facing energy services.
- Innovation and adaptability - embedding digital operations, advanced grid management and new business models (EV charging, energy-as-a-service) into legacy utility functions.
- Environmental commitment - accelerating renewables rollout, improving thermal efficiency and aiming to reduce CO2 intensity across generation.
- Regional leadership - investing in Hokkaido's electricity infrastructure, local employment, and resilience against severe winter loads and weather-related risks.
- HRA and Management Vision 2035 - structural measures to coordinate investment, renewables procurement, and new ventures.
- Grid modernization - smart meters, advanced distribution management, and demand response pilots targeted at peak-shaving in winter months.
- Customer solutions - expanded retail offerings, distributed generation partnerships, and EV charging network development across Hokkaido.
| Indicator | Value | Notes / Fiscal year |
|---|---|---|
| Consolidated operating revenue | ~¥800-1,000 billion | FY2022-FY2023 range (market and fuel price volatility) |
| Consolidated net income (loss) | ~¥-10 to +¥40 billion | FY variability due to fuel costs, thermal margins, and carbon-related provisions |
| Total assets | ~¥2.5-3.0 trillion | Includes generation, networks and long-term investments |
| Installed generation capacity | ~5-6 GW | Mix of thermal, hydro and nuclear (Tomari) plus growing renewables |
| Renewables target / growth | Double-digit % increase target by 2030 | Part of Management Vision 2035 and decarbonization roadmap |
| CO2 reduction goal | Progressing toward mid-/long-term reductions aligned with national targets | Portfolio shift and thermal efficiency measures ongoing |
- Capital allocation prioritizes grid resilience, renewable capacity additions, and digital systems to reduce operating costs and carbon intensity.
- Operational metrics tracked: peak winter demand management, hours of unplanned outage, renewable penetration rate, and retail customer growth.
- Financial metrics aligned to mission: returns on new energy investments, cost-to-serve improvements, and risk-adjusted profitability across legacy and growth businesses.
- Customer value - new tariffs, demand-side programs, and bundled energy services focused on affordability and sustainability.
- Community resilience - investments in microgrids, disaster-prepared infrastructure and cold-weather readiness for Hokkaido's unique climate.
- Employment & regional development - job creation linked to renewable projects, grid upgrades and local supply chains.
Hokkaido Electric Power Company, Incorporated (9509.T) - Mission Statement
Hokkaido Electric Power Company, Incorporated (9509.T) centers its mission on enabling a resilient, decarbonized Hokkaido through reliable power supply, regional revitalization, and technology-driven value creation. Grounded in its Management Vision 2035, the mission integrates operational stability with an ambitious Green Transformation (GX) agenda and sustained stakeholder value.- Ensure stable, safe electricity supply for Hokkaido's ~5.2 million residents across 83,424 km².
- Drive regional GX to support industry, agriculture, tourism, and community resilience.
- Invest in innovation and new energy services to meet evolving customer and societal needs.
- Maintain a robust business foundation that balances financial soundness with long-term sustainability.
- Realization of GX for Hokkaido's Growth - accelerate decarbonization and electrification in alignment with Japan's national goal of carbon neutrality by 2050.
- Challenge of Creating New Value - expand business domains (distributed energy, renewables, hydrogen, energy management) and commercialize new services to capture growth opportunities.
- Robust Business Foundation for Sustainable Growth - strengthen financial resilience, operational efficiency, and disaster preparedness to underwrite long-term investments.
| Item | Figure / Target |
|---|---|
| Management Vision target horizon | 2035 |
| Japan national carbon-neutral target | 2050 |
| Hokkaido population (approx.) | 5.2 million |
| Region area | 83,424 km² |
| Company ticker | 9509.T |
- Decarbonization: scale-up renewable generation, grid flexibility, and electrification to progressively reduce CO2 intensity in line with regional GX milestones through 2035.
- Innovation: commercialize distributed energy, storage, and hydrogen pilot projects-targeting partnerships and new-revenue streams to diversify beyond commodity power sales.
- Financial resilience: strengthen cash flow and capital allocation to support capital expenditure for renewables, grid upgrades, and resilience projects.
- Community integration: expand demand-side programs, electrification incentives, and disaster-response capabilities for island and rural communities within Hokkaido.
| Area | Relevant Metric / Objective |
|---|---|
| Renewable capacity addition | Accelerate MW-scale solar and wind buildouts through 2035 |
| Grid modernization | Invest in transmission, distribution automation, and storage to improve reliability and integrate variable renewables |
| New business commercialization | Increase non-generation revenue share via energy services, EV charging, and hydrogen projects |
| Resilience & safety | Enhance disaster response capability and asset hardening for extreme weather events |
Hokkaido Electric Power Company, Incorporated (9509.T) - Vision Statement
Hokkaido Electric Power Company, Incorporated (9509.T) frames its medium- and long-term ambitions around resilient regional energy supply, decarbonization, and value co-creation with stakeholders. The vision emphasizes a secure, low‑carbon energy system for Hokkaido that supports local industry, communities, and quality of life while enhancing corporate value.- Challenge - Pursue continuous growth by taking on new technologies (renewables, storage, digitalization) and business models to exceed expectations and adapt to changing energy markets.
- Co-creation - Collaborate with communities, local governments, businesses, and academic partners to jointly design and deploy solutions that balance regional needs and sustainability goals.
- Trust - Maintain integrity, fairness, and respect for diverse values to underpin long-term relationships with customers, shareholders, employees, and communities.
| Indicator | Value (most recent reported) |
|---|---|
| Population served (Hokkaido) | ≈ 5.2 million |
| Installed generation capacity | ≈ 6.9 GW |
| Electricity sales (annual) | ≈ 35.2 TWh |
| Consolidated revenue | ¥540.0 billion |
| Consolidated net income (loss) | ¥‑38.0 billion |
| Total assets | ¥1,150.0 billion |
| Number of customers | ≈ 3.3 million |
| Employees (consolidated) | ≈ 9,000 |
- Integration into strategy - The company prioritizes investments in renewables, grid resilience (including distributed energy and storage), and digital systems to realize its vision while adhering to Challenge, Co‑creation, and Trust.
- Stakeholder metrics - Progress is monitored via operational KPIs (renewable capacity additions, reliability indices, emissions intensity) and corporate metrics (ROE, profitability, safety records, community impact programs).
- Community focus - Emphasis on regional employment, disaster preparedness, and collaborative projects that leverage local resources and expertise to create shared value.
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