Japan’s Hitachi Ltd and Switzerland’s ABB have set up a joint venture to sell high voltage systems in Japan.
This comes after Japan’s September announcement to open its tightly controlled electricity industry to more competition starting next April. This will begin with operations for a national grid company, followed by full competition in retail sales in the following year.
This will provide both companies opportunities to benefit from the reform. Particularly for ABB the reforms offer an opportunity to sell high voltage direct current systems for transferring electricity across Japan’s fractured regional networks as well as linking up renewable energy supplies.
Japan’s government has pledged to boost renewable energy and in April said it aims to surpass previous targets to double power generation from such sources to around 20 percent in 2030 from around 10 percent in 2012.