As part of the Mitsubishi Corp. family since 2016, the company is also strengthening its presence in Japan.
Eamonn O’Donoghue, a founder of ElectroRoute and CEO of ElectroRoute Japan, spoke with Bridges.
Bridges: What opportunities do you see for ElectroRoute in Japan?
O’Donoghue: The energy landscape in Japan is undergoing rapid change as a result of two major drivers. The country’s ambitious carbon reduction targets have led to the continued development of new renewable electricity generation assets, such as solar and offshore wind.
Secondly, the liberalization of the electricity marketplace is encouraging new entrants and price competition and is highly advantageous for ElectroRoute as we have been at the forefront of similar market transitions in Europe. We are now ready to replicate our European successes by bringing our products, experience and knowhow to Japan. The fact that Japan will be the largest liberalized electricity market in the world is a significant opportunity for ElectroRoute. We believe our European experience and successes, combined with Mitsubishi Corporation’s reputation, are a perfect combination for success.
What is ElectroRoute’s role in the industry, particularly in Japan?
In line with other G7 countries (seven leading industrialized nations), Japan has set an ambitious target to deliver netzero carbon energy systems by 2050. As a company, our mission is to solve the commercial mechanics of a decarbonized energy system.
In order for global energy systems to be effectively decarbonized, legacy fossil fuel technologies (gas and oil-fired power generators) need to be replaced with clean renewable technology, such as solar and wind generators.
Existing energy markets and associated financial structures were not designed with renewable technologies in mind so the journey towards delivering carbon-zero energy systems will require significant commercial and financial innovations in addition to shifts in technology.
ElectroRoute excels in energy markets and financial innovations and has much to offer Japan. ElectroRoute’s mission includes studying, developing and optimizing the necessary financial structures to allow new renewable technologies to be financed, built and successfully compete in energy global markets.
What is your vision for the future of ElectroRoute?
Global warming and the need to rapidly decarbonize our societies to curb increasing temperature change is without doubt the defining challenge of this generation.
We are unfortunately already beginning to see the catastrophic impacts of global warming. Energy costs are increasing in line with fossil fuel prices and geopolitical instability. There is an urgent need to accelerate the transition from a reliance on fossil fuels towards carbon-free renewable technologies and ElectroRoute has a significant role to play in assisting and driving this process forward. We at ElectroRoute plan to remain at the forefront of the green transition and future-ready. Ready for a renewables-led, net-zero, secure future.
In Japan we are establishing our Tokyo office and aim to employ 50 energy market experts by early 2025. We look forward to completing our three-year plan, in partnership with our colleagues at Mitsubishi Corporation, to strengthen our energy trading and trading services in the Japanese market.