Execution of Agreement on the "Project for Power Quality Improvement through Upgrading Grid Code and Strengthening its Enforcement System"

February 15,2021

Tokyo Electric Power Company Holdings, Inc.

Tokyo Electric Power Company Power Grid, Inc.

Tokyo Electric Power Services Co., Ltd.

Nippon Koei Co., Ltd.

Tokyo Electric Power Company Holdings, Inc., TEPCO Power Grid, Inc., Tokyo Electric Power Services Co., Ltd. and Nippon Koei Co., Ltd. have formed a consortium and concluded an agreement today with the Japan International Cooperation Agency (hereinafter referred to as, "JICA") on the "Project for Power Quality Improvement through Upgrading Grid Code (hereinafter referred to as, "GC") and Strengthening its Enforcement System".

Hydroelectricity is the main source of power production in Lao People's Democratic Republic (hereinafter referred to as, "Laos"), and the country exports power to adjacent nations (Thailand, Vietnam, Cambodia), but export volume is limited due to the substandard planning and operation of power grids thereby making it difficult to further increase power exports in conjunction with supply and demand conditions both in Laos and neighboring countries. This project was started in response to a request made to the Japanese government by the government of Laos to establish a wide-area linkage system that can link the power grids of Laos to those of adjacent countries, and also train engineers upon establishing technological standards that will allow optimal operation of domestic power grids in Laos.

The four members of the consortium will leverage technologies for grid planning and operation that they have cultivated in Japan's electricity industry and also their overseas consulting experience to establish a GC that will enable players in Laos's power industry, such as the Ministry of Energy and Mining, and Electricite du Laos (EDL), to suitably plan and operate power grids, while also contributing to the realization of an autonomous and stable wide-area linkage system in Laos.

Through the JICA "The Study on Power Network System Master Plan in Lao People's Democratic Republic" (2017~2020), the consortium has already made domestic power demand predictions for Laos and created a power development plan in addition to creating rules and a roadmap for the operation of power grids through creating new power grid development plans and examining existing GC in light of the power development plans of neighboring countries.

*: Grid Code: Comprehensive conditions that cover broad rules that must be complied with when connecting assets to a power system or market, and that support the cost-effective and highly reliable operation of power systems. (From the International Energy Agency)