APR Energy’s Tokyo contract ends ahead of schedule

The Tokyo Electric Power Company (TEPCO) is to partially terminate its contract with APR Energy four months ahead of schedule following a change in its strategy.

The partial contract termination applies only to the APR installation at the Hitachinaka power station, which comprises 83 MW of diesel generators and 50 MW of gas turbines. This will now terminate on 31 March, 2012.

APR said its contract for 70 MW of gas turbines in operation at Yokosuka will remain in operation for the full contract term, ending on July 31.

Contract conditions related to early termination provide for payment of a substantial portion of the remaining rental fees to APR, so any impact on revenues would be marginal, said the power rental company. APR said there was no change to its market guidance for the current year.