Kansai, Kyushu confirm new coal-fired capacity

OREANDA-NEWS. Japanese utilities Kansai Electric Power and Kyushu Electric Power have finalised their plans to develop 2,200MW of coal-fired generation capacity through tenders seeking new thermal power capacity from 2021.

Kansai awarded its tender for 15 years starting during 2021-23 to Japanese steelmaker Kobe Steel (Kobelco). It will supply Kansai with up to 1,200MW of electricity from 2021. The steelmaker was the only participant in Kansai's tender that closed in November last year.

Kobelco is currently undergoing a government environmental assessment for its plan to build two 650MW ultra-super critical (USC) coal-fired power units at its Kobe steelworks using land that will vacant following a planned 2017 shutdown of its No.3 blast furnace. The two units will be fed with pulverised coal and are targeted to start up during 2021-22.

Kyushu won its own tender seeking 1,000MW starting in 2021 with its planned construction of a second coal-fired power generation unit at the Matsuura power station in Nagasaki prefecture. The company plans to build the 941MW No. 2 USC power unit at Matsuura for a 2021-22 start-up. Kyushu had received two offers, including one from a Japanese manufacturer for 300MW of coal-fired power supplies. Kyushu has also won a tender to supply 7.65MW of fuel oil-fired power generation to Nagasaki prefecture's Tsushima island starting in 2018.

The Japanese government in 2012 introduced guidelines encouraging utilities to seek new thermal capacity or replacement through tenders to reduce power generation costs, in preparation for the full deregulation of the country's power market over 2018-20. Chubu Electric Power and Tohoku Electric Power this month decided to develop additional coal-fired and gas-fired power capacity themselves after failing to attract any outside offers into their tenders seeking new capacity.