Mitsubishi Electric will enter a JV with HD Renewable Energy to explore the Japanese market
Its focus will be the development and electricity retailing of solar and battery storage systems
Mitsubishi will also acquire a 3.07% stake in the Taiwanese company as it seeks to capitalize on the Japanese corporate PPA market
Japanese multinational electronics and electrical equipment manufacturer Mitsubishi Electric Corporation has announced a joint venture (JV) for solar power and battery storage systems with Taiwan-based HD Renewable Energy.
This aggregation business JV will fund the development, investment and asset management, and electricity retailing of solar power and battery storage systems.
It will aggregate multiple distributed energy resources (DER), including solar and storage systems owned by HD Renewable Energy in Japan. The JV will leverage Mitsubishi’s experience in electrical equipment and HD Renewable Energy’s expertise in energy storage and renewable energy development, smart power trading and green electricity supply.
These systems will be utilized to help stabilize power grids and maximize the profitability of the business. The JV is planned to be established in Japan in April 2025.
“Part of Mitsubishi Electric's Energy & Facility solutions strategy, it will aim to provide services that help achieve efficient power utilization and CO2 reductions for both individual businesses and society at large,” stated Mitsubishi about this JV.
Additionally, Mitsubishi will acquire a 3.07% stake in HD Renewable Energy by subscribing to a 3rd party allocation of new shares issued by the latter for TWD 680 million ($20.7 million). It will use the funds raised to explore corporate power purchase agreement (PPA) opportunities utilizing Japan-based solar power systems of HD Renewable Energy.
The Japanese group has also signed a corporate PPA for an HD Renewable Energy project to increase the scale of its renewable energy procurement.
For Mitsubishi, this investment is aligned with its target to achieve net-zero GHG emissions from its factories and offices by the fiscal year ending March 31, 2031.
HD Renewable Energy has separately announced that it plans to cooperate with alternative investment management company Brawn Capital to invest close to TWD 1.239 billion ($37.8 million) to establish a 50 MW storage project in Japan’s Hokkaido. It will be grid-connected by the end of 2025, and then possibly acquired by its JV with Mitsubishi.
Earlier this year, in January 2025, HD Renewable Energy entered a JV agreement with Australia’s ZEN Energy for 1.4 GW of solar PV and battery storage projects to be developed across Australia, Taiwan, Japan, and other nations (see Asia Pacific Solar PV News Snippets: X-Elio Seeking Approval For 720 MW Australian Solar & Storage Farm & More).
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