Tokyo Electric Power : Outline of the Fourth Comprehensive Special Business Plan(PDF 581KB)

Outline of the Fourth

Comprehensive Special Business

Plan

(Application for Authorization)

※This document is an outline of the Fourth Comprehensive Special Business Plan, summarized under the responsibility of Tokyo Electric Power Company Holdings, Inc.

※This document is translated under the responsibility of Tokyo Electric Power Company Holdings, Inc. solely for reference purposes. Should there be any discrepancies between the English translation and the Japanese original, the latter shall prevail.

		Basic Policy		1
			1. Basic Policy of the Fourth Plan

TEPCO's overarching mission is to fulfill its responsibilities for Fukushima. In order to raise the necessary funds amid a changing business environment, TEPCO has been conducting "Drastic Management Reforms" as a consolidated group.

Maintain the scheme of the Revised Comprehensive Special Business Plan (the Third Plan)

Necessary Funds		Compensation for the
500 billion yen/year can be secured
	Decommissioning	affected
	8 trillion yen	7.9 trillion yen
	(3.9 trillion yen to be

borne by TEPCO)

（includes 260 billion yen per year on average in

decommissioning and other reserves）

Decontamination	Interim
storage
4 trillion yen
1.6 trillion yen
450 billion yen/year		National
of profit can be gained		Budget

Necessary Funds 21.5 trillion yen

Incl. 15.9 trillion yen to be borne by TEPCO

*the Necessary Funds are calculated based on "Recommendations on the reform of Tokyo Electric Power Company Group"

*approx. 10 trillion yen out of the 13.5 trillion yen necessary for compensation for the affected, decontamination and interim storage has already been funded (the compensation amount we can estimate at this stage is approx. 12.3 trillion yen)

Business in Changes Environment

Rebuilding company credibility seriously damaged by a series of inappropriate incidents at nuclear power plants is required with the highest priority

A proactive approach by TEPCO is called for in the government's Basic Policy on Handling of the ALPS Treated Water

• Given that the government has announced its "2050 Carbon Neutral Declaration" and the greenhouse gas reduction target for 2030, realization of a carbon neutral society is becoming a common challengefor Japanese society, including TEPCO

Massive social change, such as increasing resilienceto cope with continued natural disasters, greater digitalization, and a paradigm shiftin socio-economic activities caused by the COVID-19 pandemic

The Fourth Plan particularly strengthens efforts to fulfill responsibilities for Fukushima and establish autonomous

management

Fulfill responsibilities		Rebuild societal trust		Strive for Carbon Neutrality		Supply stable power/Disaster
for Fukushima				prevention

		Overview		2
			2. Rebuilding societal trust (Nuclear Business)

Loss of trust in TEPCO

Right

direction

toward drastic reform

TEPCO caused a great deal of concern to the local people and society due to a series of inappropriate incidents at the Kashiwazaki-KariwaNuclear Power Station, and trust in TEPCO was greatly damaged.

We will implement drastic company reform not only at power plant sites but also addressing the very nature of TEPCO's organization.

We will devote resources without hesitationto strengthen our capabilities at power plant sites that relate to nuclear security etc.

We will proceed with a concrete examination of reform plans (below) rooted in a cause analysis for the series of inappropriate incidents, and efforts such as the establishment of a governance model that supports this work.

1. Integrated operation of the head office and sites, 2. Introduction of systems and structures to complete the project, 3. Expansion of resources for drastic strengthening of nuclear material protection and improvement of quality, 4. Review of personnel allocation and rotation, and utilization of external experts, 5. Improvement of on-site operations and working environment.

We will proactively accept outside recommendations and viewpointsthrough specialized directions, such as on matters related to the improvement of safety culture and nuclear security from the "Independent Review Committee on Nuclear Material Protection" and matters related to management reform from the "Nuclear Reform Monitoring Committee".

Rebuilding

societal

trust

Under the new system, if a situation that further damages trust occurs, we will carry out drastic reforms with a sense of urgency that our work will directly affect our nuclear power business and TEPCO's survival as a company. TEPCO will demonstrate how it is an organization remade by its actions and achievements.

We place efforts to rebuild trust as the highest priority in the Fourth Plan, and aim to restart nuclear power generation on the premise of improving safety and operational quality, and by gaining understanding from the local community and society.

We will undertake our business ever mindful of the fact that TEPCO Group's every activity directly results in our gaining/losing societal trust.

Overview	3
3. ALPS Treated Water/Balance between Revitalization

and Decommissioning

ALPS Treated Water

In response to the basic policy regarding the disposal of ALPS treated water decided by the government, TEPCO complies with the basic national policy as the implementing body, and voluntarily works to ensure safety and thoroughly implement measures to avoid adverse impacts on reputation.

Measures regarding the disposal of ALPS treated water:

1. Ensuring the safety of the public, the surrounding environment, and agriculture, forestry and fishery products
2. Expansion and strengthening of monitoring
3. Prevention of leakage from tanks
4. Through mutual communication, dispel domestic and international concerns, provide polite and easy-to-understand information to gain local understanding and ensure peace of mind, and minimize the impact of rumors
5. In addition, if reputational damage occurs, compensation will be promptly and appropriately provided

We will reflect the guidance and advice of expertssuch as the IAEA, and listen to the opinionsof parties concerned. In parallel with this, we will strengthen our organizational structure and proceed with preparations so that we can start releasing into the sea in about two years.

Balance between Revitalization

and Decommissioning

In order to gain understanding and provide peace of mind with regard to decommissioning work, we listen to local concerns and doubts and carry out two-waycommunicationto deliver accurate information in an easy-to-understand manner.

In order to carry out decommissioning for a long period of time, it is vital to have the trust of the region and the continuous cooperation of companies, centered on those in local communities.

We established an organization under the directcontrol of the president to help expand the participation of local companies in the decommissioning work. Per the decommissioning industry agglomeration scenario announced this May, aiming for medium- to long-termdecommissioning industry agglomeration in Fukushima, both safe and steady decommissioning and expanded participation of local companies in the decommissioning work are compatible aims.

		Overview		4
			4-1. Carbon Neutrality Targets and Business Initiatives <1>

Target

Invest-

ment

Business	Renew-
	ables
Initiatives
Fuel
	and
	Ther-
	mal
	Power

CO2 emissions from electricity sales - 50% reduction in FY 2030 from FY 2013

CO2 emissions from energy supply - Carbon neutral in 2050

Development of zero-emission power sources and Electrification

Carbon neutrality-related investments - up to 3 trillion JPY by FY 2030

Renewable plant development up to FY 2030,mainly composed of offshore wind, with a total of around 6-7GWdomestically and internationally, aiming to position renewable energy as the "main power supply" with an annual 100 billion JPY net profit from renewable business.

Financial and technological business foundations, underpinned by collaborations with other parties, in order to invest aggressively in renewable businesses after FY 2023.

By 2030, all coal power plants of low thermal efficiency rate will be shut down by JERA

Pilot project will be launched for co-combustion of ammonia and coal at a high efficiency coal power plant. Co-combustion plant will start business operations by 2030 and, in the 2040s, we will strive to replace current power plants with ammonia-only-basedpower plants.

We will strive to introduce hydrogen and fossil fuel co-combustionplants, with business operations to start in the 2030s.Looking to 2050, we aim to realize zero-emissionthermal power plants with a gradual increase in combustion rate.