Japan-based Tokyo Electric Power (Tepco) has shortlisted four companies in a bidding process for the supply of 1,450MW of thermal power.
The selected firms include Electric Power Development (J-Power), Nippon Steel & Sumitomo Metal, Tonen General, and Hitachinaka Generation, which is a unit of Chubu Electric Power.
The company initially announced its plan to purchase up to 6,000MW of thermal energy in August 2014, but received only ten bids for just 4,530MW of energy by the end of March.
Reuters cited an anonymous Tepco procurement official as saying that Tepco, however, selected only five of the ten bids as the other bids could not meet the required price range.
The purchase is a part of the firm’s plan to expand the supply sources and lower its procurement costs.
The company is also seeking potential bidders to secure more LNG power, the Tepco official said without disclosing further information.
The firm, which owns the Fukushima Daiichi nuclear plant that suffered meltdown following the Tsunami in March 2011, was saved from bankruptcy by the Japanese Government in 2012.
Tepco has already paid billions of dollars in compensation claims and clean-up costs related to the melted nuclear plant.
The 2011 Fukushima Daiichi nuclear disaster led to the closure of nuclear power generation in the country, forcing the utilities to seek alternate power sources such as coal and LNG.