Japanese electronics conglomerate Toshiba Corp. will tie up with German real estate company Gagfah SAS to sell energy directly to residents in Germany, sources told Reuters.
According to the report, Toshiba will fit solar panels on residential properties owned by Gagfah. It will start the project by the first quarter of 2014 in two towns in south Germany.
Bypassing the grid should enable Toshiba to cut costs and offer energy at a lower price to consumers. Germany's shift from nuclear power to renewable energy has caused a rise in electricity bills, Reuters said.
Sources told Reuters that the venture is the first case of a solar-panel maker selling power directly to customers and bypassing the grid.
Toshiba aims to reach a capacity of 100 megawatts with solar power. It seeks to generate revenues of JPY19 billion to JPY24 billion (USD184 million to USD233 million) from the installation of the infrastructure and sale of electricity in the next three years, the report said.
Reuters said that Gagfah announced a pilot of the project in February. It is one of the largest real estate companies in Germany with around 145,000 properties.
Toshiba hopes to expand the scheme to Italy and parts of Asia including Thailand, Malaysia and Indonesia, the report said.
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