GE announces intention to enter Japanese power gen business

• 12 years ago (2012-09-07)
• Junior Isles

Asia 897

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GE has announced plans to expand and enter the power supply business in Japan.

It will begin by investing in independent power producers (IPPs) and power producers and suppliers (PPSs), both of which are expanding in number as Japan charts its new post-Fukushima energy policy. The company also intends to take part in the day to day operation any power plants it invests in.

GE’s move is primarily motivated by hope of increasing opportunities to secure orders for its core businesses of equipment supply and maintenance of power plants.

Hideyuki Ohnishi, representative from GE Energy, Japan, has stressed that power generation equipment supply and maintenance services will remain as the company's core businesses.

Ohnishi also said that despite this the company is "ready to make a move" if a request is made by an electric utility for funding for a specific purpose company (SPC) with a view to including power plant renewal as well as plant operation after the renewal.

Anticipating a continued increase in IPPs and power producers and suppliers (PPSs) in Japan, the GE group "looks to cooperate not only in equipment supply, but also in funding of SPCs in the area of power generation as well as the operation and management of power plants, in order to respond to various customer needs in Japan," Ohnishi said.