Japanese trading multinational Mitsui & Co. has unveiled a plan to invest around $193 million (30 billion Japanese yen) over the next two years to build a solar farm in Texas. The move will capitalize on the increasing demand for renewable energy in a state where wind power dominates other forms of renewable energy.
The solar farm, with a capacity of 150 megawatts, is currently under construction in Hill County in central Texas and is slated to start commercial operations in 2026.
Mitsui plans to supply the generated electricity directly to companies and enterprises, as well as integrate it into the state’s general power system.
Texas’s pricing system for electricity, which varies according to the location of the power plant, convinced Mitsui to invest in the solar farm. Hill County’s proximity to major urban centers in the state, such as Dallas and Houston, allows for potentially higher electricity prices due to high demand in these densely populated areas.
Renewable sources account for 30 percent of Texas’s power generation with wind power being the primary contributor. Mitsui’s investment decision was also driven by the significant growth potential of solar energy in the region. The company plans to monitor market trends and consider further investments accordingly.
Mitsui & Co. Energy Marketing and Services (MEMS USA), which will be responsible for managing the retail and wholesale sales of 600 megawatts of electricity annually across Texas and other states, will distribute the generated power. Also, MEMS USA plans to install a 300-megawatt-hour storage battery by 2025, allowing the company to store electricity and supply it when demand is lower, thereby optimizing consumption and costs.
The U.S. government’s support for solar power generation through the Inflation Reduction Act is expected to boost demand for renewable energy projects. Mitsui’s investment aligns with this trend, and other Japanese firms such as Idemitsu Kosan and Itochu are also expanding their solar power initiatives in the United States.
