• Aims to raise 200 billion yen in next 3 years by selling assets
• Will seek alliance partners to advance reforms
• Plans to enhance capabilities to meet rising data centre demand

TOKYO, Jan 26 (Reuters) - Japanese utility Tokyo Electric Power (Tepco) (9501.T) , opens new tab on Monday said it would cut about 3.1 trillion yen ($20 billion) in costs over 10 years through restructuring measures, adding that it expected to swing to a loss for the fiscal year that ends in March.

The government has approved the Japanese utility's revised business plan, which calls for raising about 200 billion yen over the next three years by selling assets. The firm also intends to pursue alliances to advance its intended reforms, saying it will seek partners capable of growing with it.

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Tepco, the operator of the Fukushima Daiichi nuclear power plant which in 2011 suffered one of the world's worst nuclear disasters, faces mounting costs to decommission the plant, clean up surrounding areas and pay compensation. It is borrowing government funds to cover costs related to the disaster.

Potential asset sales include equity stakes and real estate holdings. The Nikkei newspaper has reported that it could sell shares in Kandenko (1942.T) , opens new tab, an electrical and plant equipment company that is 46% owned by Tepco.

Tepco declined to comment on specific assets.

To meet growing demand to build data centres in Tokyo, Tepco said it wanted to get stronger in developing data centres by collaborating with firms focused on securing suitable sites as well as manufacturers and construction companies.

On Monday, Tepco said it expected a loss of 641 billion yen for the fiscal year that ends in March, compared with a year-earlier profit of 161.2 billion yen. The company attributed its expected shortfall to a one-time loss related to the Fukushima Daiichi disaster.

Tepco shares closed down 3.8% in Tokyo; the overall Nikkei index (.N225) , opens new tab ended the day 1.8% lower.

The utility is targeting recurring profit of 342 billion yen in fiscal 2034, up from 135 billion yen in fiscal 2024. That assumes the No. 6 reactor at the Kashiwazaki-Kariwa nuclear power station will restart in fiscal 2025 and the No. 7 unit will restart in fiscal 2029.

It stopped the No. 6 reactor on Thursday to investigate a malfunction after restarting it briefly earlier in the week. That was Tepco's first restart of a nuclear power plant since the Fukushima disaster.

Tepco revises its business plan every few years, a process that requires government approval. The latest plan is the first revision in more than four years.

Tepco reduced its costs by 8 trillion yen and raised 1.1 trillion yen with asset sales from fiscal 2012 to 2024.

($1 = 154.9800 yen)

https://www.reuters.com/business/energy/tepco-targets-20-billion-cost-cuts-between-fiscal-2025-2034-2026-01-26/