TEPCO and Chubu complete thermal power JV agreement
TEPCO Fuel & Power, Inc., a wholly owned subsidiary of Tokyo Electric Power Company Holdings, Inc., and Chubu Electric Power Co., have announced the conclusion of a joint-venture (JV) agreement with the aim of integrating existing fuel receiving, storage and gas transportation businesses and existing thermal power generation businesses in Japan into JERA Co., Inc (JERA).
On March 28, the two Japanese energy majors concluded a basic agreement on integrating existing thermal power generation businesses and have been engaged in detailed study and discussion in the lead-up to the integration.
According to a statement, after the integration, JERA will engage in measures to “enhance the competitiveness of domestic power generation businesses,” and “increase profits in new business areas and/or create synergy with existing JERA businesses” as it aims to generate an integration effect in excess of JPY 100 billion (≈ US$950 million) per annum within five years of implementation.
By leveraging this effect, along with engaging in the domestic electricity transaction market, JERA will be enabled to “grow into a global energy company that can compete on equal footing” with competitors in the international energy market. The aim is to complete the integration during the 1st half of FY2019.