Building local reputation
In March 2011, Japan was hit by a 9.0 magnitude earthquake which triggered a powerful tsunami that devastated large areas of the country. The tsunami caused several nuclear accidents, which combined with some conventional power plants going offline after the earthquake, reduced the total capacity of Tokyo Electric Power Company (TEPCO), the country’s largest power provider, by nearly 50%.
Aggreko signed a letter of intent with TEPCO less than one month after the tragedy, for 100MW of gas-fired and 100MW of diesel-fired power generation. This initial 200MW contract was installed in the Tokyo Bay area and southern Pacific Ocean coastal area, to help sustain the supply of electricity to consumers and industry which had been seriously affected by the earthquake and tsunami. This contract has since off-hired as TEPCO’s generating capacity has increased.
As a result of the assistance we provided to TEPCO, they recommended us to another utility, Hokkaido Electric Power Company (HEPCO), to assist with their winter peak energy requirement. Since 2012 we have provided them with 150MW of diesel power. Having now been operating in Japan for over three years, we have also analysed the market and identified an opportunity for our Local business, leading to the opening of an office in 2014.