Power Supply

Japan’s electricity wholesale supply system was established in 1995. This allowed independent power producers (IPPs) to participate in power supply, which until then had been the exclusive domain of electricity utility companies. Under the new system, Nippon Steel has entered the electricity wholesale supply business.
Following the revision of the Electricity Utilities Industry Law in March 2000, retail supply of electricity to major users was deregulated. In this regard, Nippon Steel notified the government agency concerned in January 2001 that it had become a "Power Producer and Supplier (PPS)" and started operations in the electricity retail supply business.

Business Development in the Wholesale Supply

• Utilization of power-generation technologies fostered in steelworks in-plant power generation
  • Nearly 86% of total electricity consumption by in-plant power generation equipment
    (refer to page for the power supply)
• Utilization of steelworks infrastructure such as land, ports/harbors and raw materials yards
• Low-cost, stable supply of electricity

IPP^*1 Power Supply Contracts

• Successful bidding for four supply projects (about 500,000 kW in total) in fiscal 1996, the first year of the electricity business, and three projects (300,000 kW and 475,000 kW, 300,000kW) in fiscal 1997 and fiscal 1999, fiscal 2020.

*1 Independent Power Producer
*2 In Apr. 2014, consumed within the works and other
*3 In Jul. 2015, wholesaled or consumed within the works
*4 In Apr. 2014, renewed contract
*5 In Oct. 2016, wholesaled or consumed within the works
*6 In Apr. 2017, wholesaled
*7 Owned by Kashima Power Co., Ltd., a joint venture with J-POWER

Retail Supply Business (NIPPON STEEL ENGINEERING CO., LTD.)

• Retail supply of electricity to commercial and industrial consumers in all TSO areas in Japan excluding Hokuriku and Shikoku areas
• Sources of electricity from power plants operated by Nippon Steel, waste to energy, and surplus of on-site co-generation operated by Nippon Steel Engineering.

Wind Power Generation (NIPPON STEEL ENGINEERING CO., LTD.)

• Start of wind power generation in Hibikinada, Kitakyushu in March 2003