TOKYO (Nikkei)–Within the next three or four years, the Tokyo Metropolitan Government plans to build approximately 10 thermal power plants in the Tokyo Bay area, powered by natural gas and offering 100,000kw of capacity each, as part of efforts to stabilize electricity supplies in the Japanese capital, The Nikkei has learned.
Later this afternoon, the municipal authorities will likely unveil a detailed plan to prevent blackouts in areas served by Tokyo Electric Power Co. (9501). Other municipalities throughout the country are expected to follow Tokyo’s lead.
The Tokyo government will work with private-sector entities to set up two investment funds that will provide approximately 40 billion yen in funding for the project. One of the funds will be managed by an investment firm under one of Japan’s megabanks, while the other fund will be run by an independent company.
The metropolitan government will provide 1.5 billion yen for each fund, in addition to offering loans through private-sector entities. The two funds will also invest in the small-lot electricity business by building power plants, while directly investing in special-purpose companies that will also construct similar facilities.
The Tokyo authorities expect the power-generation business to grow to approximately 200 billion yen in value within the next three to four years. The city government will not require environmental assessments for proposed power plant sites as long as a facility’s total output is 100,000kw or less, which will shorten the time between the start of construction until launch to less than two years.
The municipal authorities will encourage large companies based along the Tokyo Bay coastline to buy and set up thermal power generators for in-house use.
The city pursued plans to build a 1 million kilowatt power plant near the bay last year. However, it later shelved these plans due to difficulties in selecting a construction site.
Filed under: 5.Climate Change & Carbon