Hitachi Energy has revealed its intention to invest a further $4.5 billion by 2027, doubling the investments made over the last three years. These funds will enable us to increase our worldwide R&D, engineering and production capacities for transformers and HVDC products. They will also support the deployment of solutions based on power electronics, network automation and software solutions. Electrification is essential to achieving carbon neutrality targets, requiring a significant increase in the production of critical technologies for an expanded power grid. The increasing integration of renewable energies such as solar and wind power, as well as meeting the electrification needs of transport, buildings, industry and other sectors, requires a flexible and secure grid infrastructure.
Strategic Expansions in Sweden
The company will invest around $330 million to modernize its flagship plant in Ludvika and create a new campus in Västerås, Sweden. The Ludvika plant, with over 120 years of innovation behind it, will be expanded by over 30,000 square meters to increase production of large transformers, meeting the requirements of key HVDC projects. The Västerås campus will be home to 1,800 employees, including an R&D center and a state-of-the-art production facility for network automation. The workforce in Sweden will increase by 2,000 employees to support this accelerated energy transition.
Meeting growing market demand
Electrification is creating unprecedented demand for power grid systems and digital solutions. As market leader, Hitachi Energy is responding with an unprecedented level of investment, innovation and personnel to meet this demand. According to the International Energy Agency’s (IEA) October 2023 report, recent advances in clean energy are unprecedented and give cause for optimism, but require greater cooperation between governments and business to ensure that the world’s power grids are ready for the new energy economy.
HVDC Projects and Strategic Partnerships
Hitachi Energy recently announced a number of HVDC projects that are essential to meeting growing market demand. Framework agreements have been signed with RTE in France, RWE in Germany, Marinus Link in Australia, and a service contract with Pattern Energy in the United States. The Sa.Co.I.3 interconnection between Italy and France is also underway, illustrating a state-of-the-art multi-terminal solution. Governments, industries and consumers are speeding up the switch from fossil fuels to electricity to power transport, heating and cooling buildings, and industrial processes. Real-time network data is essential for informed decisions and collaboration. Digitized transformers, switchgear, substations, converter stations, and digital twin platforms like IdentiQ are essential for a more sustainable, flexible and secure energy system. Hitachi Energy uses the synergies between its energy and digital divisions to offer unique capabilities in IT, OT, products and services, supporting customers throughout their project lifecycle.
Hitachi Energy’s massive investments in production capacity, R&D and partnerships illustrate the company’s commitment to playing a leading role in the global energy transition. By strengthening its infrastructure and constantly innovating, Hitachi Energy is positioning itself as a key player in meeting the challenges of electrification and supporting a secure, sustainable energy future.
