Mitsubishi Electric Signs Agreement with HD Renewable Energy, Will Establish Joint Venture and Acquire Stake

Aiming to expand Energy & Facility solutions and strengthen procurement of renewable energy

Mitsubishi Electric Corporation has signed an agreement with HD Renewable Energy Co., Ltd., a Taipei-based developer and operator of solar power and battery storage systems, to collaborate on initiatives aimed at achieving carbon neutrality. As part of this partnership, the companies will establish an aggregation business joint venture, and Mitsubishi Electric will acquire a stake in HD Renewable Energy.

Amid rising fuel costs and global efforts to realize carbon neutrality, Japan is actively promoting the adoption of renewable energy. However, owing to fluctuations in power generation from renewable sources such as solar and wind resulting from their dependance on seasons, weather, and time of day, transmission system operators are required to continuously monitor the demand for power and fine-tune adjust supply and demand. In this context, the aggregation market is expanding, leveraging multiple distributed energy resources (DERs), including renewable energy generation facilities and battery storage systems, to support grid stability and optimize the profitability of power generation and storage businesses.

Mitsubishi Electric is forming an aggregation business joint venture with HD Renewable Energy, which operates globally in regions such as Taiwan, Japan, and Australia. The venture will support the development, investment, and asset management of solar power and battery storage systems, as well as electricity retailing. Focused on advancing these areas, the new company will aggregate multiple distributed energy resources (DERs), including HD Renewable Energy’s solar power and battery storage systems in Japan. As part of Mitsubishi Electric's Energy & Facility Solutions strategy, the initiative aims to enhance power efficiency and contribute to CO2 reduction for both businesses and society.

The companies plan to establish the joint venture in Japan by April 2025, with further details still under discussion.

Mitsubishi Electric will also participate in a third-party allocation of new shares issued by HD Renewable Energy, further strengthening their collaboration. Aligned with its Environmental Sustainability Vision 2050, the company aims to achieve net-zero greenhouse gas (GHG) emissions from its factories and offices by the fiscal year ending March 31, 2031. Through this investment, Mitsubishi Electric will explore corporate PPA opportunities utilizing solar power systems developed by HD Renewable Energy in Japan to enhance its renewable energy procurement.