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TOKYO— Toshiba Corporation (TOKYO: 6502) and Meidensha Corporation (TOKYO: 6508) today announced that they have signed a memorandum of understanding (MOU) on a business and technology alliance that will support them in enhancing their respective businesses in small and intermediate hydroelectric power plant systems.

Under the terms of the MOU, with a view to reinforcing the hydroelectric power business of each company, Toshiba will supply hydroelectric turbines and service support to Meidensha while Meidensha will supply hydroelectric generators and service support to Toshiba.

At a time of increasing interest in renewable power sources, hydroelectric power generation is attracting attention for its ability to provide stable power supply at a  high level of efficiency. In Japan the recent legislation of a “Bill on Special Measures Concerning Procurement of Renewable Energy Sourced Electricity by Electric Utilities” is acting to spur demand for small hydroelectric power plant systems with a generating capacity of less than 30,000kW.

Toshiba is expanding its hydroelectric power business in the global market, including pumped storage systems, where the company is a technology leader. Meidensha’s main emphasis to date had been on the domestic market, where it promotes small and intermediate hydroelectric power systems. The partnership will allow Toshiba to strengthen its small hydroelectric power systems business, while Meidensha will be able to secure a stable supply of hydroelectric generators.

Through their collaboration, the companies will aim to expand their respective market shares in the Japanese small and intermediate hydroelectric power plant market, which is expected to see strong demand growth in coming years, by supplying high-efficiency hydroelectric power systems and high-level maintenance services. Going forward, the collaboration is also expected to expand into overseas markets for small and intermediate hydroelectric power plants.