Japan's Kepco scraps Wakayama gas power plant project

Japanese utility Kansai Electric Power (Kepco) has decided to cancel its plan to construct a gas-fuelled power plant in Wakayama City, Japan, it said on December 19.

The decision is attributed to a decrease in power demand. Initially envisioned as a 3.7mn kW project with an anticipated operational date on or before 2023, the utility now deems the venture unfeasible in the current electricity business environment.

In an official statement, Kepco said it plans to explore alternative uses for the designated project site. The company revealed intentions to repurpose a portion of the originally intended site, aiming to develop it into an enterprise zone by the year 2026.

The cancellation of the Wakayama power plant project comes with financial repercussions for Kepco. The company anticipates incurring a loss of approximately 123bn yen ($860mn), a development expected to be reflected in the financial records during the third quarter of the fiscal year ending in March 2024.