Tokyo Electric Power Company Holdings Inc (TEPCO) announced Aug 7, 2019, that it had decided to spin off its renewable energy-based power generation business in a meeting of the board of directors on the same day.
TEPCO will make efforts to make renewable energy a main power source, aiming to develop 6-7GW of renewable energy-based power plants in and outside Japan.
The spin-off is aimed at (1) calling attention to its efforts for the TEPCO group's renewable energy business, (2) clarifying responsibilities and authorities for making prompt decisions at the time of tying up with partners based in and outside Japan and making large-scale investments and (3) flexibly raising funds for them.
TEPCO will establish a wholly-owned subsidiary in October 2019 as a split company of TEPCO and carry out simple absorption-type split using the new company as a successor by April 1, 2020. TEPCO has not yet decided on the name of the new company, share option or bond with share option that are related to the spin-off.
As for assets to be transferred, TEPCO plans to carefully scrutinize them so that they will not affect the operation of the renewable energy business after the spin-off. In Japan, TEPCO has 9,880,000kW of hydraulic power plants, 30,000kW of solar power plants and 21,000kW of wind power plants.
TEPCO aims to develop an offshore wind farm off the coast of Choshi City, Chiba Prefecture. And it will probably be one of the main projects of the new company.
In regard to previous power producers, Kyushu Electric Power Co Inc already consolidated the renewable energy businesses of its affiliate companies and established Kyuden Mirai Energy Co Inc as a company that develops all kinds of renewable energies.