Chubu Electric Power Company,incorporated TSE:9502

Technology for Supporting Growth, etc.[PDF:529KB]

Published

Source: MarketScreener

New Value Creation



Value Co-Creation Story

Promotion of Digital Transformation (DX) Playing a part in the electricity infrastructure, the Group will promote regional revitalization and

contribute to the sustainable growth of society through its DX.



Nabeta Kazuhiro

Director & Executive Vice President

General Manager of Corporate Planning & Strategy Division and Chief Information Officer (CIO)

From the digital creation phase to the digital normal phase, we accelerate DX promotion across our Group.

Our Group designated the period through FY2025 as the Digital Creation Phase. During this period, we have been working to enhance our digital environment, transform our organizational culture, and improve employees' digital skills.

We are also implementing initiatives to enhance and improve the efficiency of the electric power business, provide new life services through the use of data, and promote local revitalization by offering digital support to communities and companies.

In the next stage, we will move toward the Digital Normal Phase, in which digital technologies are used routinely throughout the Company.

Specifically, we will further utilize rapidly advancing AI technologies by integrating them into operations company-wide and progressively expanding the scope of human-AI collaboration and co-creation.

This will allows us to provide better value to our stakeholders and enhance our corporate value.



Transformation of customer services

DX initiatives of the Chubu Electric Power Group (Japanese version only)

To continue growing together with local communities, we will help realize safe, secure, and convenient lives that go beyond the provision of energy services.

We aim to contribute to the sustainable growth of society by providing services tailored to each individual's living situation, promoting healthy, safe, and comfortable communities, and enhancing the well-being of citizens.

We also aim to build an information platform that, in collaboration with municipalities, uses AI to analyze diverse resident data, estimate living conditions, and propose and provide optimal services.

Specifically, in Kuwana City, Mie Prefecture, we will conduct data demonstrations using daily life data such as electricity and water usage, and residents' service usage history, to detect changes in individual health conditions and eventually offer proposals for improvement.

Operational reforms

Security & watch services

Tourism &

community revitalization

Environment & energy

Chubu Electric Power Group's DX to promote sustainable growth of local communities and society



[Other examples]

Healthcare area services (Japanese

version only)



Infrastructure maintenance & management

Maximizing Provided Value and Returns

New Value Creation

Smart meter: utilization of water supply data (Japanese version only)

We are promoting greater sophistication and efficiency of our operations by proactively utilizing AI technology.

Our Group provides generative AI to all employees. By leveraging internal data such as the operational know-how accumulated over many years, we have enabled effective information retrieval with generative AI and AI-assisted tasks such as technical studies and document preparation. These applications have also contributed to improved operational quality, such as by supporting the review of customer-facing documents based on accumulated knowledge.

Sources of Value Creation

In the future, we aim for AI agents to act as "another self," collaborating with humans while also communicating with other AI agents to autonomously optimize operations.

Supporting the growth and active roles of each and every one of our human resources

Nurturing human resources to engage in DX (Japanese version only)

Human resources Digital to engage in DX engineers

All human resources

Providing basic digital education to enable all human resources to utilize digital technologies

Further reinforcement Further reinforcement of skills of skills

Providing an IT literacy Planning initiatives to raise

improvement program for more overall competency levels, than 4,000 experienced employees such as skill visualization

FY2025

FY2024

As of the end of Late

FY2024 2020s

750 persons 1,300 persons



To enable all employees of the Chubu Electric Power Group to autonomously practice and promote DX, we implemented company-wide training aimed at enhancing DX and IT literacy and have achieved a certain level of skill improvement. Going forward, we will implement development programs to further enhance skills.

In FY2025, we will conduct training focused on advanced usage of generative AI.

Data

Until 2023

2024-2025

2026-2029

Digital deployment phase

Digital creation phase Business model reform and new business development through digital technologies

Digital normal phase

A phase where digital utilization becomes the norm across the Company and for all employees

For securing human resources to more strongly promote DX, we are also nurturing human resources to engage in DX and digital engineers. The former will make plans toward transformations and promote associated projects. The latter will design and implement operations using their expertise in the fields of advanced data analysis and the creation of AI.

We aim to develop 1,300 such personnel by the second half of the 2020s and efficiently assign them to drive transformation in each businesses.

Chubu Electric Power Group Report 2025 72



New Value Creation

Value Co-Creation Story

Promotion of Kaizen Activities
  • Permeate understanding of Kaizen (First let's all try together.)

  • Leader-driven

Introduction/Deployment phase

Participation of all employees

Itsushi Ishihara

Executive Officer

General Manager of the Kaizen Promotion Department Supervisor of Chief Kaizen Officer (CKO)

Kaizen activities are a key pillar of management, an indispensable part of achieving Management Vision 2.0.

"Kaizen activities based on the concept of the Toyota Production System" are now in their seventh year of implementation at Chubu Electric Power Group.

Following the Introduction/Deployment phase, which aimed to promote participation and understanding across the company, we positioned FY2023 and onward as the Expansion/Transformation phase, in which we launched new initiatives to promote autonomous and self-driven Kaizen activities.

The President has taken the lead in promoting these initiatives, and our management team is evolving toward a more autonomous promotion structure. By sharing successful case studies horizontally and deeply analyzing the effects of Kaizen (improvement) activities, we are steadily accumulating positive results.

Up to the end of FY2024, the entire Chubu Electric Power Group has worked on approximately 7,000 business improvement items

and these efforts have yielded cumulative cost reductions of around 52 billion yen. To date, we have shifted about 920 people to areas targeting new growth and to bolster existing operations and improve their sophistication. This has allowed us to maximize use of our valuable human resources and time and create new value and profits.

Going forward, strong leadership from top management- including the President-and the further expansion and evolution of workplace-level Kaizen activities will help us benefit fully from the self-driven and autonomous advancement of Kaizen activities.

Ultimately, we aim to make Kaizen a core part of our corporate culture and achieve sustainable growth.



From FY2018

From FY2023

Vision

Expansion/Transformation phase

Pursue and utilize results

Strong leadership by management

  • Further demonstrate leadership by management

    Maximizing Provided Value and Returns

  • Pursue and utilize results (people, goods, money)

    Improve profitability

    Cumulative total

    Pursue further achievements &

    Approx. 52 billion yen Utilize creation results

    Creating new value and profits by shifting personnel to new areas

  • Cultivate talent who will lead Kaizen activities



    Cultivate human resources capable of thinking and Build a flexible and strong management foundation acting on their own capable of responding to environmental changes

    Firmly position Kaizen as the corporate culture of the Group



    New Value Creation

    Sources of Value Creation

    Kaizen activity President's report meeting

    The President himself leads by example, visiting Kaizen activities sites in person to observe conditions firsthand, and providing direct instruction and advice.

    During these visits, he also offers words of appreciation and encouragement to employees, and conveys his thoughts as President, helping to further instill a Kaizen mindset and raise motivation.

    Matters we noticed

    Materials and equipment were scattered

    Kaizen focus points

    Variation in work operations by each person

    Practices continued from the past

    2 persons1-person work streamlining

    Repetitive movements

    Eliminate unnecessary movements

Organize/standardize meter replacement work

Kaizen activity example (Chubu Electric Power Grid)

Data

By observing work processes down to time-increments of seconds and improving and streamlining the replacement work for installation of large-capacity smart meters, we were able to both attain cost reductions (cost savings of 70 million yen/year) and ensure that work was completed on schedule.

Chubu Electric Power Group Report 2025 73



New Value Creation

Technology Research and Development and Intellectual Property

Value Co-Creation Story

Technology research and development (Japanese version only)

Noda Hidetomo

Senior Managing Executive Officer,

General Manager of Research & Development Division, Chief

Technology Officer (CTO) and Chief Standardization Officer (CSO)

Promoting technology research and development in a manner to help achieve Vision 2.0 and seeking the social implementation of innovative technologies

In addition to resolving technical issues faced by business companies and business divisions, which will contribute to a stable supply of electricity, we are promoting technology

research and development in seven priority areas for realizing the decarbonization of social systems as stipulated in our Management Vision 2.0 (Vision 2.0) and are working to create intellectual properties for enhancing our corporate value.

Overcoming the technical challenges that stand in the path of decarbonization and other goals is difficult for our Company alone. To conduct effective research, collaboration with universities, research institutions, and other companies possessing various strengths and core technologies is essential. We will continue to expand our network of

co-creation partners. By integrating perspectives from engineering and industry with academic insight and societal needs, we aim to implement innovative technologies in society.

As Chief Standardization Officer (CSO), I will work to invigorate standardization activities for the formulation of standards related to equipment and technologies in the energy business, as well as for the creation of markets for new services.



Structure to promote technology research and development

We have established the Technology Research and Development Committee under the Senior Executive Committee. In this structure, matters that have been deliberated on at the Technology Research and Development Committee are either reported to the Senior Executive Committee or submitted for discussion at the committee.

Senior Executive Committee

Investment in and contribution through technology research and development

Maximizing Provided Value and Returns

The entire Group invested approximately 9.3 billion yen in research and development in FY2024 with the intention to contribute to the realization of Vision 2.0.

More specifically, as an initiative toward the realization of decarbonization, we are promoting technology research and development in areas such as renewable energy and energy storage, including a small-scale offshore verification test of a next-generation (floating axis) wind turbine.

New Value Creation

Furthermore, in promoting DX, we are actively engaging in technology R&D related to generative AI, XR, EMS, and other areas, aiming to create the new value that transforms not only our operations but also customers' business processes and lifestyles.

Standardization initiatives

As part of efforts to create innovation toward achieving carbon neutrality, we are participating in the Floating Offshore Wind Technology Research Association (FLOWRA), working toward the international standardization of technologies related to floating offshore wind power.

Basic policy

Important individual strategies Efficient promotion

Basic plan

Companies, offices/departments, business companies

Number of employees

engaging in research activities: 257

Technology Research and Development Committee Chaired by: General Manager of Research & Development Division

Coordinate and deliberate on the following matters related

to technology development and report them to the Senior Executive Committee or submit them for discussion at the committee

Reports on individual research projects

Basic policy on technology development



Sources of Value Creation

Technology research and development: seven priority areas and major initiatives

In addition to resolving on-site issues, we are promoting technology research and development in seven priority areas to realize Vision 2.0 in collaboration with industry, academia, government, and Group companies, and are seeking the social implementation of innovative technologies.

DecarbonizationEnvironment

Safety and security Society

Self-distributed and circular Economy

Expand the use of renewable energy Expand contact points with customers and provide value Promote resource recycling

  • Develop technology for low-cost floating offshore wind power generation

  • Small-scale offshore verification test into next-generation (floating-axis) wind turbine

    Build hydrogen and ammonia supply chains

  • Build a supply chain

  • Conduct basic research on ammonia co-firing

    Maximize the use of nuclear power

  • Conduct research for further improving safety

  • Promote electrification, introduce alternative technologies for heating combustion

    Provide value through an energy platform

    • Build a grid test site, perform verification

    • Construct and verify EMS (DER optimal control, etc.)

    Provide value through a data platform



  • Expand the area of community-based services

  • Collect data using IoT sensors, big data analysis

  • Local resource circulation using sorghum

  • Develop recycling technology for rare materials

    Data

    Resolution of technical issues in business companies and business divisions

    Chubu Electric Power Group Report 2025 74



    New Value Creation

    Value Co-Creation Story

    Technology Research and Development and Intellectual Property

    Policy on intellectual property

    Creating intellectual properties that help enhance corporate value

    To strengthen our business foundation and expand our business domains, we are engaged in

    Patents acquired in FY2024

    In FY2024, Chubu Electric Power, Chubu Electric Power Grid and Chubu Electric Power Miraiz acquired 35 patents, and 46 patent applications on a date of publication basis.

    intellectual property creation that utilizes IP information from the research planning stage. We also make efforts to increase employees' motivation for invention and creation through internal education.

    Appropriately protecting and effectively utilizing intellectual properties

    We work to appropriately protect the intellectual properties thus created by acquiring patents and other rights and managing them as know-how. We also work to release the intellectual properties we own for external use.

    Respecting intellectual properties of third parties

    We conduct a survey on intellectual property rights held by third parties as an effort to prevent infringement of these rights. We are also active in utilizing intellectual properties of

    Abnormal Operation Estimation System and Program (Patent No. 7554027)

    Outside temperature Solar panel Solar irradiance

    Detection of the possibility of abnormality



    Smart meter Power generation

    amount, etc.

    Detection of solar panel abnormalities from smart meter readings, etc.

    Entry Management Device (Patent No. 7617187)





    Conventional device (a partition is installed to prevent people in the background from appearing)

    Maximizing Provided Value and Returns

    Entry Monitoring Device

    New Value Creation

    (even if there are people in the background, only the person at the front is identified)

    third parties, which are useful to our businesses, through licensing and other means.

    This is a technology that statistically estimates abnormalities in solar panels by calculating power generation, etc., from smart meter readings and data

    This is a technology that appropriately selects the worker at the front of the line and determines whether their equipment is appropriate.

    Promoting intellectual property activities

    Intellectual property activities (including the number of patent applications data)

    (Japanese version only)

    such as outside air temperature and solar irradiance.

    Make sure to acquire rights by identifying inventions

    Contribute to an expansion of the new growth area

    Enhance corporate

    value through social implementation

    • Strengthen efforts to identify and support the creation of inventions useful to business activities

    • Provide education for all employees on intellectual property creation and infringement prevention

    • Conduct activities to propose new businesses utilizing intellectual properties information

    • Develop an intellectual property strategy for applicable technologies in the seven priority areas of technology research and development

    • Increase opportunities to communicate our patents externally (e.g., through our website and external public organization websites)

    • Participate in patent matching events hosted by public and other institutions

    Holding Techno Fair 2024

    Techno Fairs (Japanese version only)

    Intellectual property activities that contribute to improving corporate value



    In working toward the social implementation of Chubu Electric Power's patents, we are striving to raise our corporate value through social contribution activities such as introducing the role of intellectual property in the energy business by giving on-site IP lectures to the next generation while disseminating information about our patents at patent matching events and external public organizations.

    Techno Fair 2024 was held under the theme "Toward a Sustainable Future," seeking connections with partners for the social implementation of technology.



    Sources of Value Creation

    We introduced a total of 68 technology R&D projects, and approximately 2,350 visitors attended the event.

    In FY2025, we will hold Techno Fair 2025 under the theme "Seeds of Innovation," with more than 80 appealing technology R&D exhibits planned.

    Data

    Award name

    Subject of award

    MONODZUKURI Nippon Conference:

    'CHO' MONODZUKURI Innovative Parts and Components Awards Environment, Resources and Energy Related Component Award

    Demonstration research on washing machines equipped with hot water heat pumps

    The Energy Conservation Center, Japan: Energy Conservation Grand Prize

    The Energy Conservation Center, Japan: Chairman's Award

    Japan Nuclear Safety Institute 2024 Special Award

    Research on improvements to the AI gate for protective gear checks

    • Example awards given to our technology research and development efforts

Chubu Electric Power Group Report 2025 75