The deal is part of a new procurement initiative by E.ON for core grid expansion components. Hitchai Energy will utilise its footprint, investments and partnerships to reserve capacity and lead industry efforts to address the global shortage in transformers, a critical component of power grid infrastructure.
The project follows the recent German government elections, in which energy prices and reliability were a key concern among voters. More than 70 percent of Germans cited rising living costs as their main concern, with energy prices at the forefront of this worry. Electricity demand in Germany is forecast to grow rapidly from 96 TWh in 2024 to 236 TWh by 2035, driven by AI, data centres and the electrification of key industries including vehicles, heat pumps and hydrogen.
Transformers are crucial to enable the efficient transmission and distribution of electricity. There is currently a major global shortage and Hitachi Energy is executing the largest investment plan in the global industry with $9 billion to scale up manufacturing capacity across the world. Germany is integral to the programme, having recently announced the expansion of its transformer factory in Bad Honnef. The company holds deep roots in Germany, employing over 2,000 people across eight locations, including three key manufacturing sites in Bad Honnef, Brilon and Roigheim.
The Bundesnetzagentur, and other German utilities and grid operators, urgently need transformers to prevent a delay in grid connections, blocks to new routing, and threats to ambitious expansion plans designed to support clean power and electrification. As part of the framework agreement with E.ON Hitachi Energy will deliver a considerable part of the transformers by reserving manufacturing capacity to support the accelerated expansion and modernisation of the German power grid.
“The growing importance of power grids demands bold investments and breakthrough innovations to shape the energy systems of the future” said Andreas Schierenbeck, CEO of Hitachi Energy. “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 is the world leader in transformers, with over two million distribution transformers and tens of thousands of other transformers deployed worldwide. In high-voltage technology, one in every four high-voltage switchgear units in operation is from Hitachi Energy.
As the inventor and market leader in high-voltage direct current (HVDC) technology, Hitachi Energy has integrated more than 150 GW of capacity - enough to power two-thirds of Europe’s households. The company is also the top supplier for offshore wind grid systems, connecting over 54 GW to the grid through our centers of excellence in Germany and Sweden. Its grid automation solutions support 50 percent of the world’s top 250 utilities.
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