Electric Power Development Co., Ltd.
9513・Prime Market・Electric Power & Gas
Business
Electric Power Development Co., Ltd. (J-POWER) is an integrated power company established in 1952 with government capital. It owns and operates diverse power sources—including hydroelectric, coal-fired thermal, wind, geothermal, and solar—both domestically and internationally, supplying wholesale electricity to former general electric utilities and retail electricity providers such as new power companies. Domestically, it also handles electricity wheeling for the nine general transmission and distribution utilities excluding Okinawa Electric Power Company. Overseas, it operates in Thailand, the US, Australia, the Philippines, and elsewhere, forming a group with 109 subsidiaries and 86 affiliated companies. Consolidated net sales for FY2026 (ending March 2026) were ¥1,182,260 million.
Business Model
In the domestic power generation business, the company primarily relies on long-term and bilateral contracts with retail electricity providers, having introduced a mechanism to pass fuel cost fluctuations through to sales prices. Capacity Market Revenue has also become established as a new revenue source. The Transmission and Transformation Business generates stable earnings through regulated tariffs (appropriate cost plus appropriate profit). The Overseas Business combines a long-term power sale contract with the Electricity Generating Authority of Thailand (base charge plus energy charge) and US capacity market revenue, with equity method investment gains also added. Gains from developer profits through asset sales are also incorporated into the earnings model.
Company Strengths
The company holds a diverse mix of power sources including hydroelectric, coal-fired thermal, wind, geothermal, solar, and pumped storage, with domestic power generation business electricity sales volume of 66.7 billion kWh in FY2026 (ending March 2026). The thermal power facility utilization rate rose from 58% in the previous period to 67%, driving an increase in electricity sales volume. Total capital expenditure reached ¥188,576 million, as the company pursues both maximum utilization of existing assets and new construction in parallel.
The Overseas Business segment posted segment profit of ¥94,856 million, accounting for approximately 60% of consolidated ordinary income of ¥158.5 billion, making it a highly profitable segment. Operations are diversified across Thailand, the US, Australia, the Philippines, and elsewhere, combining stable earnings from a long-term contract with the Electricity Generating Authority of Thailand with capacity revenue from the US PJM market. In fiscal 2025, the company also realized equity method investment gains from the transfer of its equity interest in a US thermal power generation business.
The company is responsible for the maintenance and operation of the Sakuma Frequency Converter Station (the only large-scale frequency conversion facility connecting eastern and western Japan) and holds infrastructure essential to wide-area power system operations. Transmission and Transformation Business assets total ¥313,588 million. The company is advancing reinforcement work on the Sakuma East-West Trunk Line and a plan to upgrade the Sakuma Frequency Converter Station, giving it a unique position to respond to grid reinforcement needs in an era of large-scale renewable energy adoption.
ENVALITH's Perspective
Performance Trend
Revenue for FY2026 (ending March 2026) was ¥1,182,260 million (down 10.2% year on year). The main causes were a decrease in electricity sales volume in Thailand, the suspension/decommissioning of the Matsushima Thermal Power Station, and a decline in capacity market prices. Operating profit fell sharply to ¥100,992 million (down 27.0% year on year). On the other hand, equity in earnings of affiliates of ¥63,878 million (up 341.6% year on year), resulting from the transfer of equity interest in the US thermal power generation business, pushed ordinary profit up to ¥158,532 million (up 13.2% year on year). However, impairment losses on Australian renewable energy facilities and the Takasago Thermal Power Station, together with a loss on retirement of fixed assets related to the Ohma Nuclear Power Station, totaling ¥51,817 million, were recorded as extraordinary losses, causing net profit attributable to owners of the parent to fall sharply to ¥58,537 million (down 36.7% year on year). The equity ratio improved to 37.6% (from 36.4% in the previous period). For FY2027 (ending March 2027), the company forecasts a recovery, with revenue of ¥1,380,000 million and net profit of ¥81,000 million.
Growth Strategy
Portfolio transition toward carbon-neutral assets and improvement in capital efficiency through Overseas Business expansion
Construction of a large-scale solar power plant in the United States is progressing. Commencement of operations in FY2027 (ending March 2027) is expected to directly contribute to operating income in the Overseas Business. Construction in progress has expanded to ¥774,903 million, indicating the transition from the investment phase to the earnings phase is approaching.
On April 2, 2026, the company acquired a 51% equity stake (48.96% indirect ownership by the company) in Pak Lay Power Company Limited for an acquisition price of US$144 million. This is a run-of-river hydroelectric power plant on the Mekong River, contributing to the expansion of the renewable energy revenue base in Southeast Asia and to the carbon neutrality goals of "BLUE MISSION 2050."
The company plans to acquire a 49% equity stake in each of two Thailand gas-fired combined cycle power plant companies (KLU and BPU) (total acquisition price of THB 2,765 million). These companies are expected to become equity-method affiliates from FY2027 (ending March 2027), adding stable electricity and steam sales revenue in Thailand. This initiative contributes to the medium-term management plan's goal of "establishing sustainable revenue sources and growth."
The company acquired 6,713,200 shares of treasury stock for ¥19,999 million between September 2025 and March 2026, and canceled them on May 15, 2026 (3.7% of total shares issued). The annual dividend for FY2027 (ending March 2027) is planned at ¥105 per share (up ¥5 year on year), maintaining the policy of a total payout ratio target of approximately 30%.
Upgrade work on the Sakuma East-West Trunk Line, aimed at expanding east-west interconnection capacity, is progressing. This addresses the growing demand for power network reinforcement associated with the large-scale introduction of renewable energy, and is expected to contribute to the future expansion of the electricity wheeling revenue base and to wide-area operations.
Last updated: July 19, 2026