Toshiba to Launch Innovative Photovoltaic Power Business for Apartment Buildings in Germany

-- To work with leading German real-estate company --

TOKYO--()--Toshiba Corporation (TOKYO:6502) today announced that the company will enter the solar power business in Germany with a new on-site consumption model for apartment buildings. It will initiate the business in March next year after installing systems in apartment buildings in Villingen-Schwenningen and Ostfildern, in Baden-Wuerttemberg, operated by GAGFAH, Germany’s largest real-estate company.

Although Germany introduced a feed-in tariff system for renewable energy in 2000, and while the adoption of photovoltaic (PV) power has increased, consumers have recently seen higher electricity bills every year, along with a lower feed in price for surplus solar power. Germany is seeking solutions to this by deregulating its energy market, separating power generation and transmission, and independent power providers can now participate and deliver electricity. Toshiba is responding with a new on-site consumption model that will operate independently of the feed-in tariff system, and that is expected to reduce burden on the regional gird and the environment.

The system will be funded and owned by a group of pension funds. The German branch of UK-based Toshiba International Europe (TIL) will install Toshiba’s PV systems in family apartments owned by GAGFAH, and operate and manage them. TIL will purchase the generated power from the pension funds and sell it the apartment buildings’ residents at a lower rate than that charged by electric utilities. When the PV system is not operational, on cloudy days and at night, TIL will purchase electricity in the wholesale market and sell it to residents at the same rate as electricity from the solar power system.

Toshiba will initially install 3MW solar power systems serving 750 apartments and then increase it to more than 100MW in Germany by 2016. Going forward, it will also install stationary batteries and integrate a micro energy management system, μEMS, to realize an integrated solution. Toshiba’s goal is to develop a self-sufficient model for on-site consumption that delivers solar-power electricity day and night, and apply it to a service business that supports energy management on a real-time basis. In developing its smart-grid related business at the global level, Toshiba will promote the integration and use of dispersed power sources that match local needs and conditions.

Overview of GAGFAH S.A.

1. Established: 1918

2. Chairman: Thomas Zinnocker

3. Location of Office: Mulheim an der Ruhr, in Nordrhein-Westfalen, Germany

4. Main Business: Renting apartments to individuals

5. Number of Employees: 1,900

About Toshiba

Toshiba is a world-leading diversified manufacturer, solutions provider and marketer of advanced electronic and electrical products and systems. Toshiba Group brings innovation and imagination to a wide range of businesses: digital products, including LCD TVs, notebook PCs, retail solutions and MFPs; electronic devices, including semiconductors, storage products and materials; industrial and social infrastructure systems, including power generation systems, smart community solutions, medical systems and escalators & elevators; and home appliances.

Toshiba was founded in 1875, and today operates a global network of more than 590 consolidated companies, with 206,000 employees worldwide and annual sales surpassing 5.8 trillion yen (US$61 billion). Visit Toshiba's web site at www.toshiba.co.jp/index.htm

Contacts

Toshiba Corporation
Atsuko Miyashita, 81-3-3457-2105
Corporate Communications Division
Public Relations & Investor Relations Office
Fax: 81-3-5444-9202

Representation of On-site Consumption Models. *1: Feed-in tariff sale price, sold to power distribution company for 20kw system, as of October 2013. *2: Pretax price in Ostfildern, as of October 2013. (Graphic: Business Wire)

Representation of On-site Consumption Models. *1: Feed-in tariff sale price, sold to power distribution company for 20kw system, as of October 2013. *2: Pretax price in Ostfildern, as of October 2013. (Graphic: Business Wire)

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Contacts

Toshiba Corporation
Atsuko Miyashita, 81-3-3457-2105
Corporate Communications Division
Public Relations & Investor Relations Office
Fax: 81-3-5444-9202