Post-Fukushima, Loy Yang plant may be sold in fire sale
There is speculation inside the corridors of Victoria’s largest power generator that it could be forced to a sale as a result of the nuclear disaster in Japan.
It is a little known fact that Victoria’s largest power generator, Loy Yang A power station, is part-owned by the Tokyo Electric Power Company, the same company at the heart of the nuclear catastrophe in Japan. TEPCO has owned 32.5% of the Loy Yang A station and the massive open-cut coal mine adjacent to it in Gippsland’s Latrobe Valley since 2004.
However, TEPCO owes billions of dollars in compensation following the earthquake, tsunami and subsequent meltdown at its Fukushima plant in March. It’s prompted concerns inside Loy Yang that TEPCO may need to sell down some of its international assets to recoup the funds it needs to pay compensation at home.