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Mitsubishi Electric Enters Electric Power System Simulator Market Announces Sales Tie-up with TEQSIM of
Canada
Tokyo, March 13, 1997 -- Mitsubishi Electric Corporation announced
today ( March 13, Tokyo) that it has signed a sales agreement in Canada
with TEQSIM, Inc. (Charles Gagnon, president), a subsidiary of Hydro
Quebec of Canada. TEQSIM specializes in electric power system simulators.
Under the agreement, Mitsubishi Electric will obtain more than 15% of
TEQSIM's shares and sales rights of the Canadian company's electric power
system simulators. In particular, Mitsubishi Electric will have exclusive
sales rights in Japan. The deal marks Mitsubishi Electric's entry into the
domestic market for electric power system simulators for electric power
companies. Mitsubishi Electric will also market and sell the simulators
globally.
What are electric power system simulators?
Electric power system simulators provide precise simulations of
electric power system phenomena by scaling down electrical voltage and
current by a factor of several thousand. They are used in a wide range,
including system phenomena analysis, equipment design, and technical
training in system management. The simulators facilitate equipment design
and the inspection of facility plans, eventually they will contribute to
savings electric power costs.
Today's society requires highly reliable electric power, and in response to
that need, management of electric power systems has become more complex. The
increase in complexity has made it difficult to address system management
solely based on past experience. Given this situation, demand for electric
power system simulators, which can quantify system phenomena precisely, is
expected to increase steadily in the future.
TEQSIM, a recent offshoot of Hydro Quebec
TEQSIM is a recent offshoot of Hydro Quebec, the electric power
company responsible for providing power to the Province of Quebec in Canada.
Institute de recherche d'Hydro-Québec (IREQ) boasts a high level of
research skill and equipment, extending to a laboratory experimenting on
nuclear fusion, and has more than 25 years worth of experience with simulators.
IREQ houses a scaled-down simulator of Hydro Quebec's own electric power
system. Before Hydro Quebec adds new equipment to its system, it uses the
simulator to reproduce various system conditions to confirm the new
equipment functions. In the event of power failures, the simulator helps
system managers immediately pinpoint the cause by reproducing the phenomena
involved.
Hydro Quebec has been devoting special attention to the simulator business
since Mitsubishi Electric started using the power company's simulators in
1994. In 1995, the power company established TEQSIM to specialize in these
products.
Business plan
Mitsubishi Electric was the first external user of Hydro Quebec
simulators, and as such has built up considerable experience with these de
vices, as well with other world-leading electric power system analysis
techniques. The company plans to make the most of its knowledge as a user to
develop the simulators for use in such areas as system analysis, training
with simulated transmission lines, and electric power-related experiments.
The development of the simulator business will also enable Mitsubishi
Electric to identify issues and challenges related to the operation of
customers' electric power systems. As such, Mitsubishi Electric will be able
to suggests ways of optimizing systems and in the process seek to expand its
business in areas related to transforming facilities, such as conventional
transformers, gas-insulating transforming systems (GIS), and system
stabilizers.
Mitsubishi Electric expects sales of electric power system simulators to
reach approximately 5 billion yen over the next three years.
Profile of TEQSIM, Inc.
*Data provided are as of March 1997.
*Based on an exchange rate of 90 yen to the Canadian dollar.
| Company name: |
TEQSIM, Inc. |
| President: |
Charles Gagnon (CEO) |
| Established: |
December 1995; operations commenced in February 1996. |
| Location: |
Province of Quebec, Canada
(650, Clairevue Blvd West, Saint-Bruno, Quebec, J3V6B4 Canada) |
| Capital: |
C$3.2 million (290 million yen) |
| Projected sales: |
C$75 million (6.8 billion yen) worldwide over the next four years |
| Corporate grouping: |
A subsidiary of Hydro Quebec |
| Business description: |
Design, manufacture, sale, and after-sale service of electric power system
simulators |
| Number of employees: |
35 |
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