III-nitrides (III-Ns) semiconductors and their alloys have shown in the last few years high potential for interesting applications in photonics and electronics. III-Ns based heterostructures (HS) have been under wide investigation for different applications such as high frequency transistors, ultraviolet photodetector, light emitters etc. In the present contribution a III-Ns based heterostructure, in particular the nearly lattice matched Al1-xInxN/AlN/GaN HS will be discussed. The formation of the two dimensional electron gas (2DEG), its origin, its electrical and optical properties, the confined subband states in the well and its effect on the conduction mechanisms have been studied. Moreover, extended defects and their effect on the degradation phenomena of the 2DEG have been analyzed.