Hitachi Energy signs 8-year transformer and reactor order with Svenska kraftnät
The agreement was signed during a signing ceremony. Lotta Medelius-Bredhe, director general, Svenska kraftnät (left) and tobias hansson, country managing director, Hitachi Energy (right). Image courtesy Hitachi Energy.
Hitachi Energy has signed an eight-year framework agreement with Swedish TSO Svenska kraftnät to provide transformers and shunt reactors to strengthen the Swedish power grid.
In a release, the Swiss tech major calls the contract one of the largest transformer and reactor orders ever for their flagship factory in Ludvika, which is responsible for the supply of the transformers, including design, production and installation.
The framework agreement includes large power transformers up to 750MVA and shunt reactors of 400kV in varying power ranges.
The technology from Hitachi Energy will be delivered to Svenska kraftnät substations for upgrades and to new stations that will be built to meet the increased need for electricity.
Delivery of the transformers and reactors is planned from 2027 until 2032.
While the order has been called a ‘historic’ multi-million dollar deal, financial details have not yet been released.
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Commenting in a release was Tobias Hansson, country managing director of Hitachi Energy in Sweden:
“We are very glad and grateful to be a long-term partner to Svenska kraftnät and look forward to delivering our pioneering technology and expertise. We are committed to supporting the energy transition and accelerating Sweden’s energy system to become more sustainable, flexible and secure.”
Citing the country’s government’s electrification goals, Hitachi Energy says that Sweden’s electricity use will double by 2045, totalling 300TWh.
This, they add, is where their tech comes in, as a product of electric grid infrastructure investments.
Last year, Hitachi Energy signed one of Sweden’s largest export contracts in history and recently the company announced a major investment and expansion of capacity at the flagship plant in Ludvika.
This is part of the expansion plan for Hitachi Energy to invest approximately $330 million in expanding its operations in Sweden across the entire product portfolio and recruiting an additional 2,000 employees by 2027 to support the energy transition.
Said Thomas Wennberg, factory manager of transformers at Hitachi Energy in Ludvika, Sweden: “I am very proud of this record order and our fantastic team at our transformer factory in Ludvika.
“We are on an incredibly exciting growth journey in Sweden and beyond, with large investments to boost our manufacturing capacity and a great need for recruitment.
“It is a result of the high transformer demand that we see today with our world-leading technology and competence to enable the clean energy transition.”
