Tokyo Electric Power Company Holdings, Inc. (TEPCO), the largest utility in Japan, has established Tepco Ventures, Inc. as a wholly owned subsidiary charged with turning new businesses into venture companies.
Tepco Ventures, which will begin operating on July 2, will develop both wholly owned subsidiaries within the Tepco Group and joint-venture companies formed with partners in various industries either in Japan or overseas.
New companies are expected to be developed in a variety of fields for next-generation “Utility 3.0” business combining energy and other industrial platforms, such as distributed energy, solutions based on storage batteries, infrastructure utilizing drones, IoT technologies for location services especially for children and seniors, and power infrastructure beyond the scope of electricity.
Electricity utilities and the broader utility industry have been subjected to changes as a result of the “5Ds” – deregulation, decentralization, decarbonization, digitalization and decreasing population. To adapt to these changes for long-term business sustainability, the company’s New Business Task Force so far has been investing in domestic and overseas ventures offering advanced business models and commercializing promising ideas from both inside and outside of Tepco. Going forward, the company will replace its task force with Tepco Ventures, a subsidiary dedicated to business creation through quick decision-making and strategic allocation of corporate resources.
Located in Tokyo, the new subsidiary – 100% owned by Tokyo Electric Power Company Holdings, Inc. – will be led by President & CEO Shinji Akatsuka and will have a business development budget of 10 billion yen.