J-Power takes significant stake in US power project

17 January 2017, Week 02, Issue 390

Japanese power wholesaler J-Power has acquired a 25% stake in the 926-MW Tenaska Westmoreland power project in Pennsylvania, further strengthening its presence in the US.

J-Power purchased the stake in Tenaska Pennsylvania Partners, the project operator, from affiliates of major independent US energy group Tenaska, the Tokyo-based company said, without disclosing the value of the deal.

J-Power said that Tenaska Pennsylvania Partners was now constructing the Tenaska Westmoreland gas-fired combined cycle power plant in Westmoreland County, Pennsylvania.

The new project is scheduled to start commercial operations in late 2018 and supply electricity to the PJM, the largest wholesale electricity market in the US, J-Power said.

The acquisition of the 25% stake has expanded J-Power’s net capacity in the US to more than 2,000 MW.

Including the Tenaska Westmoreland project, J-Power is currently involved in 11 power plant projects in the US.

The Japanese company is also involved in power plant projects in Thailand, China and several other foreign countries. It has set a target of ramping up its electricity generation capacity abroad to 10,000 MW on a net basis by April 2026.

In Indonesia, one of Asia’s largest coal-fired power plants is under construction after repeated delays because of strong objections from dozens of local landowners.

The project developer, Bhimasena Power Indonesia (BPI), in which J-Power holds a 34% stake, is to build and operate the 2,000-MW Central Java power plant in Batang Regency, Central Java Province.

Amid increased competition and weakening electricity demand at home, many Japanese power companies are now aggressively expanding their overseas operations.

Edited by

Richard Lockhart

Editor

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