Japan's Chubu Electric to boost overseas and renewables investment

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FILE PHOTO: A worker stands next to a spent fuel pool on the top floor of the No.5 reactor building at Chubu Electric Power Co.
FILE PHOTO: A worker stands next to a spent fuel pool on the top floor of the No.5 reactor building at Chubu Electric Power Co.'s Hamaoka Nuclear Power Station in Omaezaki, Shizuoka Prefecture May 17, 2013. REUTERS/Toru Hanai (JAPAN - Tags: BUSINESS ENERGY ENVIRONMENT)

TOKYO (Reuters) - Japan's Chubu Electric Power plans to make strategic investments of 1 trillion yen ($8.7 billion) over the 10 years through 2030, mainly in overseas and renewable energy, to achieve its 2030 recurring profit goal of 250 billion yen.

Unveiling a new management strategy on Wednesday, the company also raised its 2030 renewable energy capacity target in Japan to 3.2 gigawatts (GW) from its previous goal of 2 GW. It now owns about 0.63 GW of renewable capacity.

"In addition to our mainstay energy business, we will expand our business areas to include real estate and resource recycling in response to the global push toward decarbonisation," the company said in a statement.

The new spending plan is more than double the previous budget of 400 billion yen over the five years through the financial year to March 2024.

Of the 1 trillion yen total, 400 billion yen will be allocated to both renewable energy and overseas operations, with the remaining 200 billion yen allocated to community services and resource recycling.

Like other Japanese energy companies, Chubu has been stepping up overseas investment in search of new growth opportunities.

In September Chubu said it will buy a 20% stake in Vietnamese renewable energy company Bitexco Power Corp to gain a foothold in the growing market and expand its portfolio of green energy.

Chubu and Japanese trading house Mitsubishi Corp bought Eneco last year in a deal valuing the Dutch energy business at 4.1 billion euros ($4.6 billion).

($1 = 115.0400 yen)

($1 = 0.8918 euros)

(Reporting by Yuka Obayashi; Editing by David Goodman)

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