Hongde Energy, an international smart energy brand, has resolved to establish a joint venture in Japan with partners, such as Mitsubishi Electric, to promote local energy resource aggregation businesses.
The joint venture is expected to be officially established in April 2025 and will integrate the advantages of all parties, including Hongde Energy’s experience in energy storage and renewable energy site development, smart power trading, and green electricity matching, as well as Mitsubishi Electric’s independently developed energy management system package software and its resources in the Japanese market, to jointly promote business in renewable energy aggregation and grid energy storage.
Mitsubishi Electric will also participate in Hongde Energy’s first private placement, investing approximately NT$680 million to acquire a 3.07% stake in Hongde Energy and becoming one of the top ten shareholders. The two sides will deepen their long-term partnership of mutual assistance and benefit through equity cooperation between Taiwan and Japan alongside the layout of the Japanese green energy market.
This investment also prompted Mitsubishi Electric to consider signing a corporate power purchase agreement with the Nihon Kohden project owned by Hongde Energy to increase the scale of its renewable energy procurement. Yuanta Securities served as the financial advisor to Hongde Energy for this private placement.
Hongde Energy’s Japanese subsidiary was established in September 2023. Its current total photovoltaic and energy storage development target in Japan exceeds 3 GW. It also combines electricity retail and aggregation technologies to continue to deepen its presence in the electricity market. In addition, HongDe Japan plans to cooperate with alternative investment management company Brawn Capital and plans to invest approximately NT$1.239 billion to set up a 50 MW (total battery capacity of 104 MWh) energy storage project, with a total battery capacity of 104 MWh, ‘Project Hikari’ in Sapporo, Hokkaido. This project was developed by Brawn Capital and the construction and site maintenance will be undertaken by Hokkaido Electric. It is expected to be connected to the grid by the end of 2025. In the future, it is also expected to be handed over to the joint venture between Hongde Energy and Mitsubishi Electric for transaction, which is predicted to contribute stable overseas revenue and profits to Hongde Group.
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