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. The partnership includes establishing an aggregation business joint venture and Mitsubishi Electric acquiring a stake in HD Renewable Energy.

Amid rising fuel costs and global carbon neutrality efforts, Japan is actively promoting renewable energy adoption. However, fluctuations in solar and wind power generation require continuous supply and demand adjustments. To address this, the aggregation market is expanding, utilizing multiple distributed energy resources (DERs) to stabilize power grids and optimize profitability.

The new joint venture will fund solar power and battery storage development, investment, asset management, and electricity retailing. It will aggregate multiple DERs, including those owned by HD Renewable Energy in Japan, aiming to provide efficient power utilization and CO2 reductions. This initiative aligns with Mitsubishi Electric's Energy & Facility solutions strategy.

The companies plan to establish the joint venture in Japan by April 2025, with further details under discussion. Mitsubishi Electric will also participate in a third-party allocation of new shares issued by HD Renewable Energy, enhancing their collaboration. This investment supports Mitsubishi Electric’s Environmental Sustainability Vision 2050, which targets net-zero greenhouse gas emissions by March 31, 2031.