Hitachi Energy & E.ON: Bolstering German Energy Resilience
Hitachi Energy and E.ON are joining forces in a procurement initiative valued up to US$700m.
The partnership is aimed at modernising Germany's energy grid, thereby bolstering energy security and affordability while increasing resilience.
Hitachi Energy plans to utilise its extensive network, investments and alliances to secure capacity and address the worldwide shortage of transformers, which are essential components within power grid infrastructure.
Addressing energy supply chain challenges
Discourse surrounding energy in Germany is largely dominated by issues of pricing and reliability, with seven in 10 Germans expressing heightened concern over inflation and the related issue of energy prices.
Transformers serve a pivotal role in the effective transmission and distribution of electricity, yet a global shortage remains problematic.
To counter this, Hitachi Energy has initiated a plan to invest US$9 billion in amplifying manufacturing capabilities worldwide.
As a leader in transformer production, Hitachi Energy has successfully deployed more than two million distribution transformers and numerous high-voltage units globally. In Germany, it employs more than 2,000 people in eight locations, including an expanding transformer factory in Bad Honnef.
Germany's Bundesnetzagentur (Federal Network Agency), alongside other utility and grid operators, is in desperate need of transformers to evade potential delays in grid connections, blockages in new routing and risks to expansive plans supporting clean energy and electrification.
However, through a substantial framework agreement with E.ON, Hitachi Energy is committed to delivering a significant portion of essential transformers. This involves earmarking manufacturing capacities to aid the accelerated advancement and modernisation of Germany's power grid infrastructure.
Strategic partnerships in the realm of energy sustainability are not new to E.ON, as demonstrated by its ongoing collaboration with Prysmian.
Supplying essential equipment
Andreas Schierenbeck, CEO of Hitachi Energy, highlights the necessity of investments in power grids, emphasising that they require "breakthrough innovations to shape the energy systems of the future".
He continues: "Our expansion goes beyond business – it reflects our responsibility as a global leader to accelerate capacity and deliver the critical equipment our customers urgently need.
"Strategic partnerships like this one empower TSOs, utilities, and industry to build a more sustainable, secure, resilient, and affordable energy system for Germany."
Hitachi Energy's status as a pioneer in high-voltage direct current (HVDC) technology solidifies its global leadership, with more than 150 GW of deployed capacity worldwide—enough to energise two-thirds of Europe's residential sector.
The corporation leads in offshore wind grid integration, linking more than 54 GW via specialised facilities in Germany and Sweden. In addition, Hitachi Energy provides grid automation technologies to half of the world's largest 250 utilities, reinforcing its indispensable role in the context of the global energy transition.
