OSAKA (Kyodo) Kansai Electric Power Co. said Thursday it has abandoned plans to build a thermal power plant in Gobo, Wakayama Prefecture.

The decision reflects sluggish demand for electric power in the Kansai region, as well as fierce competition prompted by the deregulation of the electric power industry, analysts said.

The power plant was due to start operating in fiscal 2014, generating 4,400 mw. It would have been one of the utility’s largest power plants.

Kepco also decided to postpone construction plans for a thermal power plant in the city of Wakayama for a year.

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