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Commencement of Power Grid Stabilization Project to Expand the Use of Renewable Energies in Mongolia

June 24, 2022

Tokyo Electric Power Services Co., Ltd.
Tokyo Electric Power Company Holdings, Inc.
TEPCO Power Grid, Inc.

The joint venture formed by Tokyo Electric Power Services Co., Ltd. (Headquarters: Koto-ku, Tokyo; President: Yasuhiro Kubo (hereinafter referred to as, "TEPSCO")), Tokyo Electric Power Company Holdings, Inc. (Headquarters: Chiyoda-ku, Tokyo; President: Tomoaki Kobayakawa (hereinafter referred to as, "TEPCO HD")), and TEPCO Power Grid, Inc. (Headquarters: Chiyoda-ku, Tokyo; President/CEO: Yoshinori Kaneko (hereinafter referred to as, "TEPCO PG")) (hereinafter referred to as, "JV") was contracted on June 1 of this year by the Japan International Cooperation Agency (JICA) to engage in a "Power Grid Stabilization Project to Expand the Use of Renewable Energies in Mongolia" (hereinafter referred to as, "the project"), and full-scale launch of the project in Mongolia took place on June 23.
The project is the result of a request made of the Japanese government by the Mongolian government which seeks to improve the ability of its power agencies to design and operate power grids.

In order to expand the use of renewable energies (hereinafter referred to as, "renewables") in Mongolia, further smartification of power grids and the augmentation of transmission lines, which includes measures for the efficient operation and stabilization of power grids, are necessary. For approximately three years, the JV will propose measures for overcoming issues pertaining to the planning and operation of power feed command and transmission/distribution systems, and aid with improving Mongolia's ability to expand the use of renewables for power distribution, etc.

In 2015, the Mongolian government adopted a national energy policy that stipulates mid/long-term goals for the energy sector through the year 2030 and aims to increase the capacity of its power generation facilities to generate power from renewables from approximately 20% in 2021 to 30% by 2030.
However, Mongolia's grid code, which includes technical requirements and rules for connecting renewables to power grids and making power generation forecasts, which becomes more difficult as the use of renewables is expanded, is currently insufficient for expanding the use of renewables. Furthermore, due to the vastness of Mongolia, transmission lines that cover long distances are required to distribute the power from renewables that is generated mostly in the southern part of the country to demand areas, thereby resulting in various challenges, such as difficulties with voltage adjustment.
Therefore, the JV, which has know-how cultivated over many years of providing electricity in Japan and engaging in overseas consulting, such as technical expertise pertaining to the planning and designing of facilities, and the operation of power grids, etc., has been selected by JICA as the main consultant for this project.

TEPSCO, TEPCO HD and TEPCO PG will contribute to ensuring the flexibility and reliability of power grids in Mongolia that will contribute to the large expansion of renewables, and engage in efforts aimed at achieving global carbon neutrality.

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