A number of notable changes have taken place in the US energy market in recent years. On the one hand, stricter environmental regulations have led to the closure of coal-fired power plants while the construction of new gas-fired plants has gained greater momentum thanks to the availability of cheaper sources such as shale gas.
TOKYO, Aug 10, 2016 - (ACN Newswire) - Mitsubishi Corporation (MC) has reached an agreement to invest in US-based distributed generation company, Nexamp. The initiative is being executed through Diamond Generating Corporation (DGC), MC's wholly owned subsidiary in the US.
A number of notable changes have taken place in the US energy market in recent years. On the one hand, stricter environmental regulations have led to the closure of coal-fired power plants while the construction of new gas-fired plants has gained greater momentum thanks to the availability of cheaper sources such as shale gas. Moreover, there is greater motivation to install power plants that utilize energy from large centralized renewable sources such as wind and solar. The low price of solar panels, coupled with incentives implemented by the federal and state governments, has also given rise to the proliferation of small-sized distributed solar power systems installed on the rooftops of homes and commercial buildings or on idle land. All these new initiatives contribute to the reduction of retail energy costs for end-users, including general households, one of the biggest trends in the energy business today.
Nexamp is engaged in development, construction, operation and maintenance, as well as asset management for distributed solar power generation projects, with a record of developing some 50MW of energy across the US northeast. The company is seeking to expand its presence in this growing business area. For its part, by engaging in the distributed solar power generation business as the Nexamp's main shareholder, MC sees this new challenge as part of its overall aim to maximize corporate value through business expansion and the transformation of its business models.
As it develops and operates its power generation businesses globally as an independent power producer (IPP), MC will continue to pursue new business models in keeping with the changes taking place in the business environment.
About Mitsubishi Corporation
Mitsubishi Corporation (MC; TSE: 8058) is a global integrated business enterprise that develops and operates businesses across virtually every industry including industrial finance, energy, metals, machinery, chemicals, foods, and environmental business. MC's current activities are expanding far beyond its traditional trading operations as its diverse business ranges from natural resources development to investment in retail business, infrastructure, financial products and manufacturing of industrial goods. With over 200 bases of operations in approximately 80 countries worldwide and a network of over 500 group companies, MC employs a multinational workforce of nearly 60,000 people. For more information, please visit www.mitsubishicorp.com.