Chubu Electric Power Co. plans to establish a joint special purpose company with Tokyo Electric Power Co. to build and operate a coal-fired power plant, industry sources said Wednesday.
Chubu is expected to shoulder most of the construction cost for the 600,000-kw plant, which may be constructed at Tepco’s Hitachinaka thermal power station in Ibaraki Prefecture by 2019, and sell some of electricity output in the Tepco service area.
The deal, which would see Chubu selling electricity in the Tepco service area, would help break the regional monopoly system of power utilities, the sources said.
In a bid to save costs while dealing with the Fukushima No. 1 nuclear plant crisis, Tepco has invited bids to provide it with 2.6 million kw.