Infrastructure
Business Unit Overview
Our business unit is engaged in the overseas power infrastructure field, where we manage and operate IPP/IWPP*1 businesses worldwide; the renewable energy field, where we develop wind, geothermal and biomass power generation infrastructure; and the telecommunications field, where we conduct various telecommunications-related operations. In addition to these business fields, we conduct business in various other fields such as power plant EPC*2, water infrastructure, and industrial machinery. In the overseas IPP/IWPP field, we manage and operate plants in 10 countries around the world (net generation capacity of 5,363 MW as of March 31, 2012), including the Tanjung Jati B coalfired thermal power plant in Indonesia. In the renewable energy field, we are ramping up our geothermal power business, in addition to our wind power generation businesses in Japan, the U.S., China and other countries.
In the telecommunications field, we have focused on overseas mobile phone and broadband businesses in the telecommunications service sector.
*1 I(W)PP: Independent (Water) Power Producer
*2 EPC: Engineering, Procurement and Construction
Business Field Overview: Actions for Target Achievement
OVERSEAS POWER INFRASTRUCTURE FIELD
Business Environment
Continued growth in global demand for power infrastructure is anticipated in step with the economic development of emerging economies such as Southeast Asia, China, and the Middle East.
Strengths and Strategies
We aim to build an optimal portfolio on a global basis, focusing on the key markets of Asia and Oceania, the Middle East and North America, where we have extensive experience.
Furthermore, we will promote greenfield start-up projects*3 in key markets and enhance our business functions by participating in facility management and operation. Our efforts will be directed at establishing a highquality earnings base.
Actions for Target Achievement
Together with Korea Electric Power Corporation, we have taken part in the Shuweihat S3 project in the UAE—a project to develop a 1,600 MW gas-fired combined cycle power plant. In Thailand, we are working to enlarge the SPP*4 business where we supply power and steam to industrial users within large industrial parks and to the Electricity Generating Authority of Thailand (EGAT).
*3 Greenfield projects: projects that extend from plant construction to long-term facility operation.
*4 SPP: Small Power Producer
Amata B.Grimm Power Plant (Thailand)
RENEWABLE ENERGY FIELD
Business Environment
Expectations toward renewable energy generation are rising with increasing international concern for global warming, rising fossil fuel prices, changes in nuclear energy policy, and other developments.
Strengths and Strategies
We have focused on developing business by utilizing our expertise and experience developed in the power infrastructure business and our insight of the regulatory and market conditions in various countries. In the wind power business, we will be a pioneer in emerging markets such as South Africa and offshore wind-generated electricity, as we continue to cultivate projects for wind-generated electricity in the U.S. and China.
Through these measures, we are targeting to retain a generation capacity of 1,000 MW in the wind power business. In the geothermal power business, we have a particularly strong competitive edge in Indonesia, where we have supplied approximately 50% of the installed capacity of the country's geothermal power station infrastructure in operation. In Japan, we are working to enhance functions and expand the scale of the wind power and biomass power business Summit Energy Corporation is developing.
Actions for Target Achievement
In the U.S., together with GE and other partners, we have invested in the 845 MW Shepherds Flat wind project, the world's largest wind farm. We are also developing two wind farms with a total generation capacity of approximately 300 MW with the Duke Energy Group, one of the largest U.S. power utilities. In Indonesia, together with International Power - GDF SUEZ and PT. Supreme-Energy of Indonesia, we are developing two 220 MW geothermal power plants, which will be among the world's largest. Following completion of the plants, we will supply power from these plants to PT. PLN, the Indonesian state-owned electric utility, for 30 years.
Wind turbine at the Caithness Shepherds Flat Wind Farm (the U.S.)
TELECOMMUNICATIONS FIELD
Business Environment
The rapid proliferation of smartphones and tablet PCs has broadened the range of services provided through personally owned devices around the world. In response, telecommunications operators are under demands to provide comprehensive services as an integrated package.
Strengths and Strategies
Our strengths in the telecommunications field lie in our activities in Mongolia. MobiCom Corporation, in which Sumitomo Corporation holds a substantial stake, has consistently maintained its position as Mongolia's No. 1 mobile phone carrier since the company was founded. In 2011, MobiCom celebrated its 15th anniversary. In recognition of their contribution to the development of communications services in Mongolia over many years, Sumitomo Corporation and its partner KDDI Corporation were awarded the Friendship Medal from the President of Mongolia.
Actions for Target Achievement
Starting from the mobile phone business, MobiCom has diversified into a broad range of fields, including the Internet, video, mobile applications, electronic remittances, e-commerce and more. Using this experience and knowledge gained from MobiCom, we are working to develop fully integrated telecommunications operators elsewhere in the Asia, CIS and Pacific regions.
MobiCom Corporation's 15th Anniversary Ceremony (Mongolia)