Kansai Electric Power Co. will build a large coal-fired power plant in Chiba Prefecture jointly with major oil firm TonenGeneral Sekiyu K.K. The project will be possible by market liberalization in April next year.
The 1,000 megawatt plant will be built adjacent to a TonenGeneral refinery in Ichihara, the sources said. The plant is expected to come online in the mid-2020s.
Through its subsidiary Kanden Energy Solution Co., the Osaka-based utility will set up a company with TonenGeneral to oversee the project.
A portion of the electricity output is expected to be sold to Tokyo Electric Power Co., and the rest to corporate and household customers.
The nation’s retail electricity market has traditionally been monopolized by the 10 regional power companies, but is set to open up to competition in April next year.
Kansai Electric also plans to build a 1,300 megawatt coal-fired power plant in Akita Prefecture in partnership with Marubeni Corp., and a smaller coal-burning plant in Sendai. The company expects to grow in the northeast area currently served by Tepco.
Chugoku Electric Power Co., based in Hiroshima, plans to build a coal-fired power plant in Chiba in alliance with JFE Steel Corp. and Tokyo Gas, while Kyushu Electric Power Co. will do the same with Idemitsu Kosan Co. and Tokyo Gas.
And Chubu Electric Power Co., which currently serves Nagoya and other areas in central Japan, plans to build a 650MW coal-fired power plant in Tokai, Ibaraki Prefecture, jointly withTepco.