Japanese IT services company NEC Corporation is forming a joint venture with Puxing Energy, a subsidiary of manufacturing conglomerate Wanxiang Group, to develop grid energy storage products for the Chinese market.
The joint venture, which is set to begin business activities later this year, follows NEC’s purchase of US-based A123 Energy Solutions, a grid-scale energy storage company with applications including grid stabilisation and grid integration of renewable power sources such as wind or solar.
Weiding Lu, chairman of China Wanxiang Holding and chairman of Puxing Energy, said: “With more and more renewable energies deployed in China, in which Puxing has been actively participating, the energy storage business has been driven to the front.
“We see tremendous business opportunities in the accelerated transformation of China’s development model and its closely related energy structure, a key driver for the changing market landscape throughout the value chain of China’s power sector.
He added: “By this partnership with NEC as our technology and operating platform, we are well positioned to participate in these opportunities, further leveraging Wanxiang’s financial and business resources in the marketplace.”
Deal watch: NEC and Wanxiang to tap into Chinese energy storage market
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