TEPCO’s Thermal Power Generation Yuichi Nagano Washington Office Tokyo Electric Power Company 2010 Energy Buyers’ Conference Miami Beach Florida @2010 The Tokyo Electric Power Company, INC. All Rights Reserved. Japan’s Electric Power Companies System Tokyo Electric Power Company Peak Load - 183 GW (2001) Total Demand - 859 TWh (2009) @2010 The Tokyo Electric Power Company, INC. All Rights Reserved. @2005 Tokyo Electric Power Company (1) 29 Million Customers 38 Thousand Employees $53 Billion Revenue $149 Billion Gross Asset (Exchange rate 85 yen/dollar) @2010 The Tokyo Electric Power Company, INC. All Rights Reserved. @2005 Tokyo Electric Power Company (2) Historical System Peak Load (2001) Electricity Generation(2009) Installed Capacity 64,487 MW 304 TWh Nuclear LNG Hydro Oil Coal Total @2010 The Tokyo Electric Power Company, INC. All Rights Reserved. @2005 18 GW 26 GW 15 GW 12 GW 5 GW 78 GW @2010 The Tokyo Electric Power Company, INC. All Rights Reserved. Tepco’s Major Oil-Fired Power Plants Name of power plant Location Type of fuel Oil-fired Total ( year of operation commencement ) [ 1 ] Hirono MW capacity ( 1980 ) Fukushima Prefecture 3,200 3,800 Crude & Fuel oil ( Coal ) 4,400 4,400 Crude & Fuel oil ( 1971 ) Ibaraki Prefecture 1,050 1,050 Crude oil ( 1971 ) Tokyo Metropolis ( 1967 ) Chiba Prefecture 1,200 3,600 Crude & Fuel oil ( LNG / LPG ) --- 9,850 --- [ 2 ] Kashima [ 3 ] Ooi [ 4 ] Anegasaki TOTAL FY2009 Oil consumption ( Unit : 1000 kl ) 1,451 1,776 505 143 4,408 ( 532 consumed at mothballed Yokosuka Power Plant inclusive ) Tepco’s Power Generation Portfolio ( FY 2009 ) Oil Natural gas Coal Nuclear Hydro Others Capacity (kW) 15 % 34 % 6% 23 % 19 % 3% Output (kWh ) 9% 45 % 11 % 28 % 5% 2% @2010 The Tokyo Electric Power Company, INC. All Rights Reserved. Annual Oil Consumption in TEPCO’s Major Power Plants ( FY1991 - 2009 ) 12,541 12,067 fuel oil crude oil 11,651 12,000 9,988 9,782 9,664 10,000 9,065 8,625 7,211 8,000 6,298 7,426 7,427 6,883 5,754 7,051 6,289 6,029 5,556 6,000 5,366 4,867 4,822 4,369 3,843 4,000 3,627 2,824 2,792 5,330 2,000 5,839 5,077 4,130 4,044 4,074 4,123 1,955 2,672 4,641 6,792 6,588 2,854 3,046 5,353 2,542 4,028 2,745 3,509 2,753 3,825 2,405 2,560 2,977 3,196 2,596 2,166 2,030 1,672 1,190 1,323 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 @2010 The Tokyo Electric Power Company, INC. All Rights Reserved. Key Sources of Oil Supply Crude oil Indonesia ( Sumatran Light : Minas, Cinta, Widuri etc. ), Australia ( Wandoo, Stag ), Vietnam, etc. Low sulfur content ( 0.1 – 0.15 % ) required to meet strict environmental regulations. Consequently, Southeast Asian and Australian crude oils as key sources. Fuel oil Mainly domestic product refined at Japanese refinery. LSFO and LSWR imported as complementary from Indonesia and Singapore etc. Key specification is low sulfur content. Domestic product : 0.1 – 0.3 %, Imported LSWR : 0.2 – 0.3% Representative Specifications Crude oil ( Sumatran Light ) Fuel oil ( S 0.1% ) Max 0.1 Max 0.1 0.83 – 0.87 Max 1.000 5 – 20 2 – 43 Calorific value ( kJ/kg ) -- Min 42,700 Flash point ( degrees Celsius ) -- Min 70 Pour point ( degrees Celsius ) Max 40 Max 50 Carbon residue ( wt. %) -- Max 10 Ash content ( wt. %) -- Max 0.1 Water content ( Vol. % ) Max 0.5 Max 0.5 Bottom sediments & water ( Vol. % ) Max 0.3 -- Sulfur content ( wt. % ) Density ( g/cm3) Viscosity ( mm2/s ) @2010 The Tokyo Electric Power Company, INC. All Rights Reserved. TEPCO’s Oil Logistics @2010 The Tokyo Electric Power Company, INC. All Rights Reserved. Modality of Tepco’s Oil Purchase Term / Spot Delivery Mode Primarily one-year term contract Term : Spot = 95 : 5 ( FY2009 ) 20% : FOB coastal tanker - Affiliated company’s dedicated coastal tankers utilized for FOB delivery. 40% : CIF coastal tanker 30% : C&F ocean tanker - Stored at Tepco’s lease-tanks at oil terminals, and - Affiliated company’s dedicated coastal tankers utilized for re-delivery. 10% : Ex-pipe Cost & Margin-based price reflecting FOB oil price, freight, refining cost, tax & duties, etc. FOB oil prices indexed to OSP or public quotation ( e.g., Platt’s ) Pricing Payment Yen-based payment for oil purchase ( cf. US$-based for LNG and coal ) Provisional payment made at the end of next month of delivery, and Price adjustments made after final price agreement. @2010 The Tokyo Electric Power Company, INC. All Rights Reserved.