In its new management vision for fiscal year 2035, Kyushu Electric Power has announced a strategy to make renewable energy a main power source and to accelerate growth businesses such as ICT and urban development. Behind this are the increased electricity demand driven by the booming semiconductor industry in Kyushu, the response to social demands for decarbonization, and a strong commitment to diversifying revenue structures.

An ambitious roadmap aiming for consolidated ordinary profit of 200 billion yen

The “Kyushu Electric Power Group Management Vision 2035,” formulated by the Kyushu Electric Power Group in May 2025, clearly outlines the company’s future vision and its path toward sustainable growth. This vision sets an extremely ambitious financial goal of achieving consolidated ordinary profit of over 200 billion yen by fiscal year 2035, assuming a significant increase in revenue from the current situation. Additionally, as a non-financial target, it was clearly stated to reduce greenhouse gas (GHG) emissions by 60% compared to fiscal year 2013. Currently, in the Kyushu region, energy-intensive industries such as semiconductor manufacturing plants and data centers are entering one after another, and ensuring the capture of new electricity demand from these is a major pillar of growth. The company aims to transform, going beyond the traditional framework of a power supply operator, evolving itself alongside Kyushu’s economic development, and transforming into a corporate group that “opens the future from energy” by pursuing global business opportunities.

Integration of renewable energy businesses aiming to be among the top in Japan

To make renewable energy the core business of the group, Kyushu Electric Power has implemented a fundamental organizational reinforcement. In April 2024, Kyushu Electric Power will integrate its geothermal business into its subsidiary, Kyuden Mirai Energy Co., Ltd., and once preparations are complete, the hydropower business will also be integrated. With this business integration, Kyuden Mirai Energy will become the only domestic operator to own all five major renewable energy sources—solar, wind, biomass, hydro, and geothermal power—in-house. After integration, renewable energy capacity will become one of the largest in Japan, accelerating business growth through faster decision-making and consolidation of management resources. The company has set a goal to expand its renewable energy development capacity to 5 million kW by fiscal year 2030, and plans to actively invest not only in geothermal and hydropower, which generate stable revenue, but also in the development of offshore wind power with high potential. The following diagram illustrates the strengthening of the system through the integration of renewable energy businesses.

Transition to a Pure Holding Company Structure and Organizational Transformation in April 2027

To enhance the agility of group management and promote autonomous operation of each business, Kyushu Electric Power has decided to transition to a pure holding company structure in April 2027. The newly established holding company will specialize in group-wide strategy formulation, resource allocation, and management supervision, building a system that enables subsidiaries to make swift decisions in their respective areas. This serves as an organizational guarantee to balance the pursuit of growth in the integrated energy services business with the further development of growth businesses such as renewable energy and ICT. In particular, by managing each business division with an awareness of ROIC (Return on Invested Capital), we aim to improve the overall capital efficiency of the group and contribute to long-term corporate value growth. Additionally, “human capital management,” which aims to evolve from traditional hierarchical corporate culture to an organization capable of more agile and proactive value creation, will be strongly promoted alongside this organizational transition.

Diversifying revenue streams and value creation through technological innovation

Strengthening non-power sectors through ICT services and urban development

Kyushu Electric Power is focusing on ICT services and urban development as growth areas beyond its power business. In the ICT field, centered around its subsidiary QTnet Co., Ltd., we offer the optical internet service “BBIQ,” which boasts high customer satisfaction in the Kyushu area, as well as mobile services. Furthermore, anticipating increased demand due to the digitalization of society, we are strengthening the provision of highly reliable data center services and information security solutions. In the field of urban development, we are broadly engaged in the development and leasing of office buildings and commercial facilities, and are promoting projects such as the ‘Fukuoka Maizuru Square’ in Fukuoka City. Additionally, we participate in social infrastructure projects such as the operation of Fukuoka, Kumamoto, and Hiroshima airports, pursuing synergy effects with the electric power industry by generating electricity demand through regional development. Through these growth businesses, we aim to contribute to achieving an ordinary profit of 75 billion yen by fiscal year 2030.

Maximizing the Utilization of Nuclear Power and Challenging Next-Generation Technologies

To achieve carbon neutrality and stable power supply, the company has made the maximum utilization of nuclear power generation a core strategic pillar, prioritizing safety as a top priority. The vision includes not only maintaining the safe and high-efficiency operation of the existing Genkai and Sendai nuclear power plants (aiming for a 90% utilization rate), but also considering the development and installation of next-generation innovative reactors aimed at further improving safety. This includes innovative light water reactors and small modular reactors (SMRs), aiming to secure long-term decarbonized power sources while relying on national policy support and technological establishment. At the same time, we are expanding power generation operations in Asia, the Middle East, and the Americas by leveraging the technology and know-how accumulated in overseas operations. Through participation in some of the world’s largest projects, such as Indonesia’s Salula Geothermal IPP project, we plan to increase overseas power generation equity output to 5 million kW by 2030, aiming to expand profitability through technological innovation both domestically and internationally.

Strengthening the Financial Base and Future Outlook

Financial discipline and risk management accompanying a massive investment of 2.5 trillion yen

To realize the “Management Vision 2035,” Kyushu Electric Power plans large-scale strategic investments totaling approximately 2.5 trillion yen over 11 years from fiscal 2025 to 2035. The breakdown of investments includes approximately 1.5 trillion yen in carbon-neutral sectors such as nuclear power and renewable energy, and about 1.0 trillion yen in growth investments such as overseas business, ICT, and urban development. However, as of the mid-fiscal year ending March 2023, the company also carries substantial debt, with interest-bearing debt exceeding 4 trillion yen. As a result, investors and analysts are scrutinizing the returns of large-scale investments and the risk of increased interest payments due to rising interest rates. The company is showing a recovery trend, securing an ordinary profit of 207 billion yen in fiscal 2025 fiscal results. However, significant fluctuations from external factors such as delayed fuel cost adjustments remain, and maintaining financial soundness—such as a stable equity ratio of over 20%—while executing strategic investments, will be key to future management.

Maximizing the value of human capital and developing talent to lead transformation

To respond to an uncertain future business environment and steadily execute the strategies formulated, the company positions “human capital management” as one of its top priorities. We aim to evolve organizational management that connects each employee’s “Will” to value creation, and since October 2023, we have been rolling out the “QX (Qden Transformation)” project company-wide. In particular, to make DX (digital transformation) the engine of corporate transformation, we have set an ambitious goal to increase our DX workforce to 240 by fiscal 2025, six times the previous number. This is an essential investment to transform from the traditional organizational culture of power companies to one that masters cutting-edge technologies such as AI and can be competitive in new business areas. By emphasizing dialogue between management and employees and improving engagement ratings, we aim to boost productivity and prevent talent loss. By fully leveraging the power of these “people,” Kyushu Electric Power aims to evolve from Kyushu into a corporate group leading Japan’s decarbonization and economic growth.

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