Japanese power utilities TEPCO and Chubu Electric are considering merging their thermal power plants under a new joint venture that would be set up from April 2015, as announced in October 2014. The companies will create a 50-50 joint venture that will be in charge of the construction of new thermal power plants and of thermal plant replacement, overseas power generation and energy infrastructure operations. This joint venture may also include the operation of their thermal power plants, representing nearly 68 GW of installed capacity. TEPCO and Chubu Electric are the largest and third largest power utilities in Japan and their joint venture would create one of the largest power generation companies worldwide.
Both companies are facing financial difficulties since the Fukushima disaster and the shutdown of their nuclear power plants; TEPCO is facing massive compensations for damages and relies on government's financing, while Chubu Electric has posted financial losses since 2011 due to expensive LNG purchases. The joint venture is primarily aimed at joining force in fuel procurement (LNG, oil and coal), upstream development and gas investments.
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