Marubeni to Participate in Smart Grid Business at New Clark City

Posted on April 04, 2019

(News Release of Marubeni Corporation)

Marubeni Corporation (hereinafter, “Marubeni”), The Kansai Electric Power Co., Inc. (hereinafter, “Kansai”), Chubu Electric Power Co., Inc. (hereinafter, “Chubu Electric”), and The Manila Electric Company (hereinafter, “MERALCO”), the biggest power distributor in the Philippines, have decided to jointly participate in the smart grid business (*1) at New Clark City (hereinafter, “NCC”) in the Philippines. 

In the Philippines, Bases Conversion Development Authority (hereinafter, “BCDA”) is currently developing an environmentally-friendly smart city on the vacant land formerly used as Clark US Air Force Base located roughly 120km northwest of Metro Manila (*2). This project will include the design, construction, operation and maintenance of smart grid facilities in the Philippines and will be the first project of its kind to be conducted in the country.

The joint venture company (hereinafter, “JVC”; Equity participation: Marubeni 18%; Kansai 9%; Chubu Electric 9%; MERALCO 54% and BCDA 10%) will begin distributing power to NCC. JVC will extend the smart grid facilities pursuant to the expansion of the NCC and will contribute to its sustainable development.

Marubeni maintains 12GW of net IPP generation assets across 22 countries. Entering into power-related business in the Philippines in the 1960s, Marubeni began participating in the IPP business beginning in the early 1990s. Marubeni maintains 6 power generation facilities and 1,466MW of net power generation capacity in the Philippines, thus accumulating vast knowledge  and experience in the IPP business. Marubeni strives to expand the community-based electric
power service business in the Philippines by utilizing its own knowledge of the overseas power business, Kansai and Chubu’s knowledge of efficient and stable power supply, which they have cultivated in Japan and MERALCO’s abundant experience in the Philippines’ power distribution business.

(*1) The Smart Grid Business comprises electricity distribution and the provision of an efficient power supply system through the real-time utilization of accumulated power consumption data collected by smart meters installed in homes, offices, factories etc. in addition to the power distribution business.

(*2) NCC is a large-scale new city which BCDA is planning to develop on the vacant land of former Clark US Air Force Base (9,450ha). NCC is nominated as one of the national projects whose goal is to  seek solutions for issues facing Manila, the capital city of the Philippines, such as traffic jams and high population density. NCC endeavors to offer such solutions by aiming to increase the number of residents of the new city to 1.2 million and create 800,000 employment
opportunities by 2065 through the relocation of government facilities, the construction of highways, etc.