Japanese trading giant Mitsui & Co. has unveiled plans to invest approximately 30 billion yen ($193 million) over two years in the construction of a solar farm in Texas, USA, aiming to capitalize on burgeoning demand in a state predominantly powered by wind energy.
The solar project, located in Hill County, central Texas, will boast an installed capacity of 150 megawatts, with construction commencing on April 30. Commercial operations are slated to commence in 2026, with Mitsui aiming to supply electricity both to the state's general power grid and directly to businesses and factories.
“Texas has adopted a system in which the price of electricity sold to the grid is determined by the location of the power plant. Hill County is close enough to heavily populated cities like Dallas and Houston that electricity can be sold at relatively high prices,” Mitsui stated, highlighting the strategic location's advantageous positioning for electricity sales.
While wind power currently dominates Texas's renewable energy landscape, accounting for 30% of power generated, Mitsui sees significant potential for growth in the solar sector, driving its investment decision. The company expressed openness to further investments while monitoring market dynamics.
To manage the generated electricity effectively, Mitsui's subsidiary, Mitsui & Co. Energy Marketing and Services (USA) (MEMS), will oversee distribution. MEMS, which already handles retail and wholesale sales of 600 MW of electricity annually in Texas and across the U.S., will also launch a storage battery facility with a capacity of 300 megawatt-hours in 2025. This move aligns with the company's strategy to store electricity for peak demand periods, potentially yielding higher returns.
The investment comes amid expectations of rising demand for solar power generation in the U.S., supported by government incentives such as the Inflation Reduction Act. Mitsui joins other Japanese firms like Itochu and Idemitsu Kosan, which are also actively pursuing solar power projects in the country.
