NTT will join the Renewable Energy sector in Japan with an investment amounting to $9 billion

The telecommunication group for japan Nippon Telegraph and Telephone will use the country renewable energy market by investing more than 9.3 billion dollars, which is equivalent to one trillion Japanese yen before the end of 2030. According to Nikkei, the development aims to boost energy capacity, and the company develops its network for transmission.

The main aim of NTT is to generate 7.5 million kilowatts, which is equal to 12 percent of the current national renewable-energy capacity by the year 2019. NTT, the former state-owned telecom, will be the first company to operate the national scale of Japan power distribution market since it comes to law in the year 2016. The use of renewable energy is speeding up in the whole world. The entry of the wealthy company NTT changes the competitive dynamics.

An investment that is close to one billion dollars yearly until the end of the year 2025, the current power capacity will increase by 25 folds. After completing the project, the company will have the ability of energy production higher than the regional providers of energy Shikoku Electric Power which supplies electricity in the whole of Japan’s mainland, including the smallest island.  

NTT will supply electricity directly to the consumers. The majority of the telephone exchanges in the whole of japan will function as the small generators and have renewable energy storage batteries. From the storage facilities, the electricity will move to the office of the factory, which is nearby through the existing NTT lines and the grid.

Some of the companies that will team up with NTT are Mitsubishi Corp, which will provide power to more than 14,000 convenience stores managed by Lawson, a subsidiary of the trading house. NTT will also have an offshore wind power plant and solar plants. The group electricity unit NTT Anode Energy will manage and develop the operations. Japanese Regional Utilities have priorities to use the current transmission lines by creating an obstacle to the entry. NTT will move around by creating its transmission network.

NTT sees the current opportunity to combine existing data from communication with the combination of electricity use data. The use of renewable energy offers a new pillar of business when its mainstay communication operation faces slow growth challenges. The company targets 7.5 kilowatts of electricity, which will exceed 2-3 million kilowatts held by Tokyo Electric Power Co. Holdings.