Mitsubishi Electric Corp. is pushing into renewable energy management through a stake purchase in Taiwan’s HD Renewable Energy Co. and plans to establish a joint venture to capitalize on Japan’s growing clean power market.
The Tokyo-based industrial giant will subscribe to newly issued shares of the Taipei-based solar power developer, though financial terms weren’t disclosed. The companies plan to set up their joint venture in Japan by April to manage distributed energy resources, including solar installations and battery storage systems.
The partnership comes as Japan grapples with grid stability issues while racing to expand renewable energy capacity. Power transmission operators face increasing challenges in balancing supply and demand due to the intermittent nature of solar and wind generation.
Through the joint venture, Mitsubishi Electric aims to aggregate multiple power sources and storage facilities to help stabilize the grid while maximizing returns from generation assets. The company also plans to explore corporate power purchase agreements using HD Renewable’s solar systems in Japan to advance its goal of achieving net-zero emissions from its operations by fiscal 2030.
HD Renewable, established in 2016, operates renewable energy projects across Taiwan, Japan and Australia. The company provides development, asset management and retail electricity services.
