Tokyo Electric buys stake in Paiton

Thu, 30 Jun 2005 | Source: AP

TOKYO: Tokyo Electric Power Co., Asia's biggest power producer, said it will pay US$137 million for a stake in PT Paiton Energy, an independent Indonesian generator, to benefit from rising power demand in Southeast Asia.

Tokyo Electric will acquire the 14 percent stake from TransCanada Pipelines Ltd. and a finance unit of General Electric Co., the Tokyo-based company said in a statement on Wednesday. Paiton Energy operates the 1,230-megawatt coal-fired Paiton I power plant on Java Island.

Indonesian demand for electricity is expected to grow at an annual pace of 6 percent during the next decade, providing Tokyo Electric with a new source of income at a time when the opening of Japan's energy markets to increased competition is leading the nation's power companies to cut prices. -- Bloomberg

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