Electric equipment supplier Hitachi Energy plans to invest an additional $4.5bn by 2027 to accelerate the clean energy transition.
The investment will double the amount spent since 2021 and includes the $1.5bn announced in April 2024 to increase global transformer production.
The investment aims to meet customer commitments and market demand, enhancing global research and development (R&D), engineering and manufacturing capabilities for transformers, high-voltage direct current (HVDC) and high-voltage products.
It will also facilitate the deployment of power electronics-based solutions, grid automation, software solutions and services, aligning with the Hitachi Energy 2030 Plan.
Funds will also be allocated to partnerships, supply chain enhancements, digitalisation and automation to support capacity expansion and accelerate market delivery.
Electrification is crucial for achieving net zero targets, and the energy transition demands innovative software solutions, services and an increase in critical technology production for an expanded electricity grid.
To integrate renewable energy sources and meet the electrification needs of various sectors, a secure and flexible grid infrastructure is essential.
The International Energy Agency (IEA) has indicated that the growing use of general AI and digital data could see global electricity demand from data centres and AI double by 2026.
Hitachi Energy is investing $330m to expand and modernise its flagship factory in Ludvika, Sweden and establish a new campus in Vasteras, Sweden to enhance product portfolios.
The Ludvika site will grow by more than 30,000m², increasing the manufacturing capacity for large transformers and HVDC projects.
The Vasteras campus will house 1,800 employees, including an R&D centre and a grid automation production facility.
The Swedish workforce will increase by 2,000 to support the energy transition.
The company's Global Technology and Innovation Center in India will expand to more than 4,000 employees to serve more than 40 countries.
Hitachi Energy CEO Claudio Facchin stated: “Electricity will be the backbone of the entire energy system and the change is happening faster than many thought possible. New business models, harmonisation of designs, along with partnerships. are key drivers for the increase in the pace of change.
“The world is in a race to transform energy systems. Technology is not the bottleneck and electrification is creating unprecedented demand for power grid systems combined with digital solutions and services. As the market leader, we are responding with an unprecedented level of investment, people and innovation to meet that demand.”
