Mitsubishi Electric and HD Renewable Energy Join Forces for Carbon Neutrality

Mitsubishi Electric Corporation (TOKYO: 6503) 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 that will help realize carbon neutrality. As part of their collaboration, 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. Against this backdrop, there is expansion in the aggregation market, where multiple distributed energy resources (DERs) such as renewable energy generation facilities and battery storage systems are utilized to help stabilize power grids and maximize the profitability of power generation and storage businesses.

Mitsubishi Electric's establishment of an aggregation business joint venture with HD Renewable Energy, which operates businesses globally, including in Taiwan, Japan, and Australia, will help fund solar power and battery storage system development, investment, and asset management, as well as electricity retailing. Their new joint venture company will dedicate itself to achieving progress in these areas, aggregating multiple DERs, including solar power and battery storage systems owned by HD Renewable Energy in Japan. 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.

The companies target to establish the joint venture in Japan in April 2025, with further details currently under discussion between them. Mitsubishi Electric will additionally subscribe to a third-party allocation of new shares issued by HD Renewable Energy, strengthening collaboration between the two companies. Under its "Environmental Sustainability Vision 2050," Mitsubishi Electric is aiming to achieve net-zero greenhouse gas (GHG) emissions from its factories and offices by the fiscal year ending March 31, 2031, and throughout its entire value chain by the fiscal year ending March 31, 2051. Through this investment, the company will explore corporate PPA opportunities utilizing solar power systems developed by HD Renewable Energy in Japan, with the aim of enhancing the procurement of renewable energy.



This collaboration between Mitsubishi Electric and HD Renewable Energy is a significant step towards realizing carbon neutrality and promoting the adoption of renewable energy in Japan and globally. By combining their expertise and resources, the companies aim to create a more sustainable and resilient power grid, ultimately contributing to a cleaner and more efficient energy future.