An agreement has been reached in which Mitsubishi will be investing in US-based distributed generation company, Nexamp. Diamond Generating Corporation (DGC) MC's, who wholly own subsidiary in the US will be executing the initiative.
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 utilise energy from large centralised 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 maximise 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, MC will continue to pursue new business models in keeping with the changes taking place in the business environment.