Toshiba Corp. is going into the potentially lucrative wind power generation business, becoming the first Japanese general electric manufacturer to do so. Its subsidiary is planning to acquire Sigma Power Janex Co., by November of this year in what is expected to be a multi-billion yen deal. In April of this year, Toshiba also made its official foray into the solar power business.
The company announced on Tuesday that it was planning this new venture because under the feed-in tariff program of the government, renewable energy will become more profitable in the long run because buying power generated from “green” sources will be at a fixed price. Sigma Power Janex, which is a spinoff of Fukuoka-based Japan New Energy Explorer Co (JANEX), will be operating the two JANEX wind farms in the Kyushu region, one in Kagoshima Prefecture and the other in Nagasaki. They will also be running a wind farm that will be built in Kagoshima Prefecture by 2014 and in the pipeline, there are four more to be built in Miyagi, Yamaguchi and Ehime Prefectures.
Other Japanese companies are also getting into the renewable energy business. Softbank’s affiliate SB Energy Corp and trading house Mitsui & Co will be partnering up to run an 111-megawatt solar plant complex in Hokkaido to be built on a 166-hectare site in Abira. Operations are expected to start by the winter of 2015. This will be the biggest solar plant by the Softbank group and will generate 108 million kwh which can power up to 300,000 households. The electricity will be sold to Hokkaido Electric Power Co.
[via Jiji Press]
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