Leading Irish energy trading and services firm ElectroRoute has today confirmed its expansion into the emerging Japanese energy market.
ElectroRoute is a specialist energy trading company based in the CoLab in Letterkenny and in Dublin. The business has grown rapidly from a start-up in 2011 to now employing over 80 professionals located throughout Ireland the UK and Europe.
ElectroRoute was majority acquired by Mitsubishi Corporation in 2016 and the latest expansion will build upon the substantial commercial foundations that have already been laid in Japan since this transaction and through collaborative efforts to develop the ElectroRoute business model for the Japanese market.
Founding Director and Director of Trading, Eamonn O’Donoghue has been seconded to Tokyo to lead ElectroRoute’s Japan business, working through its major shareholder, Mitsubishi Corporation. In Japan, Mr. O’Donoghue now joins executive Aidan Cummins who was seconded to Tokyo in a business development role in 2018.
Uniquely positioned at the crossroads of international energy markets, ElectroRoute trades energy 24 hours a day across the entire spectrum, including spot trading, futures trading, commodities, and green certificates trading. It also provides managed trading services to over 1.4GW of energy assets, giving them ready access to pan-European markets.
In 2019, ElectroRoute traded energy related commodities in 10 different countries with a total turnover of €3bn. At the core of ElectroRoute’s business is a highly flexible multi-billion euro technology platform based in Dublin which will be leveraged to support ElectroRoute’s trading activities for the Japanese market.
The Japanese market is significantly larger than the Irish market with Japan’s electricity demand 34 times that of Ireland. It has seen phenomenal change over the last decade due to the challenges posed by the Fukushima nuclear disaster in 2011, continued deregulation of the power market since 2016 and the increase in renewable energy technology and infrastructure to consolidate Japan’s energy security. Japan has grown its solar capabilities hugely in recent years and is about to embark on the development of large-scale offshore wind projects.
The enhancement of ElectroRoute’s trading business for the Japanese market in collaboration with Mitsubishi Corporation is particularly timely, as last week (26 October 2020) Japan’s prime minister, Yoshihide Suga, pledged reaching zero emissions of greenhouse gases and achieving a carbon-neutral society by 2050. With such significant reforms of the market continuing at pace, ElectroRoute will introduce a suite of services including specialist
Commenting on its market expansion, Founding Director and Director of Trading, Eamonn O’Donoghue said, “It is an incredibly exciting time for us to expand into the Japanese energy market, which currently resembles the state of European energy markets as they were ten years ago and offers us a wealth of opportunities. As experienced traders in Europe, we will contribute to the further maturation of this nascent market by guiding clients through the landscape and offsetting market volatility through our risk management tools.”
Mr. O’Donoghue also noted, “Being part of Mitsubishi Corporation, this offers us a range of opportunities while we bring a unique way of doing things, based on global experience, which is needed for a fast-changing market.”
ElectroRoute CEO Ronan Doherty added, “ElectroRoute is now ideally placed to enter the Japanese market facilitated in collaboration with Mitsubishi Corporation and this expansion will also further strengthen our positioning within the international energy landscape. I have every confidence that Eamonn and the ElectroRoute Japanese business team will open up new avenues and opportunities in this market that will allow us to build upon the vision we had when we founded ElectroRoute.”Tags: