The decision was taken amid the Fukushima atomic crisis that weakened the prospects of its nuclear power business.

Toshiba plans to allocate more than JPY3tn ($40bn) for its capital and research and development budget for 2011-13, as it plans to tap into the market for various renewable sources of energy and smart grids.

The company recently announced its plans to acquire smart-meter manufacturer Landis+Gyr for around $2.3bn, reports Reuters.

It also formed an alliance with the South Korean wind power firm Unison by buying JPY3bn ($40m) of Unison’s convertible bonds and plans to gradually increase its stake to 30% in a year’s time.

Toshiba also pans to increase the production from a lithium ion battery plant in Kashiwazaki, Niigata Prefecture, anticipating its increased usage in the smart-grid systems.