
On September 25, 2024, Chugoku Electric Power Co. (Chugoku EPCO) concluded a 53.9 billion yen transition-linked loan agreement with a syndicate of 29 financial institutions from across Japan, the company announced on the same day.
Chugoku EPCO plans to use the raised funds for strengthening and upgrading its non-fossil generation including nuclear and renewable assets, as well as its power grid.
The 10-year loan expiring on September 25, 2034, has a sustainability performance target of halving Chugoku EPCO’s power retail-related CO2 emissions by FY2030 compared with FY2013 emissions. Future interest rate on the loan will vary depending on the utility’s ability to meet the target. Five Chugoku area-based banks including Hiroshima Bank, Chugoku Bank, Yamaguchi Bank, San-in Godo Bank, and Tottori Bank will jointly manage the loan.
Being the main utility in the Chugoku TSO area, 7,354MW of the 11,087MW of generation capacity Chugoku EPCO operated as of March 31, 2023, was thermal. That said, as the Japan Energy Hub PPA database shows, the company has signed multiple corporate PPAs totaling over 170MW to date among other efforts to decarbonize its power supply.