Japan's NTT to spend $5.5 billion to build power networks: Nikkei

The logos of NTT (Nippon Telegraph and Telephone Corporation) are displayed at a building in Tokyo, Japan May 1, 2018. REUTERS/Issei Kato

TOKYO (Reuters) - Nippon Telegraph and Telephone Corp will spend about 600 billion yen ($5.5 billion) to build power distribution networks, the Nikkei newspaper reported, without citing its sources.

In a rare move for non-power generators, Japan’s former telephone monopoly aims to supply power to hospitals and factories when electricity supply is cut off, the report said.

NTT generates about 300 billion yen in revenue from its power business and plans to double that by fiscal 2025, the report said.

NTT will provide electricity by using power saved in batteries at the 7,300 buildings it owns and will purchase power from others, the report said.

It also plans to build solar, wind and biomass power generators.

NTT’s own networks could reduce the risk of blackouts, the report said.

In September Tokyo Electric Power was slow to restore service after Typhoon Faxai hit Tokyo and surrounding regions and left more than 800,000 households without power.

Reporting by Junko Fujita; editing by Jason Neely