Hitachi Energy signs transformers agreement with RWE

Hitachi Energy has secured a frame agreement with transmission system operator RWE to supply transformers for their renewable energy projects in Europe.

The first-ever framework agreement between the two companies consists of the supply of small power transformers (SPTs) for RWE’s growing pipeline of green energy projects in Europe.

The partners established foundational base designs for various SPT transformers sourced from Hitachi Energy. These designs will align with the technical and regulatory specifications of the respective countries where the projects will be accomplished.

Transformers are a key component of electric systems, enabling voltage transformation to connect renewable energy with existing grid infrastructure.

According to Hitachi Energy, they have a wide transformer design, production and service footprint across Europe, manufacturing and servicing facilities in ten countries.

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“We thank RWE for the trust and we are excited to collaborate as a technology partner in advancing multiple renewable energy projects and supporting Europe’s journey toward carbon neutrality,” said Norbert Beatrix, hub manager Europe Region, Business Unit Transformers for Hitachi Energy.

“In the pursuit of net zero, it is imperative to embrace solid partnerships and collaboration such as this one, ensuring the scale and speed to decarbonise energy systems.”

The frame agreement is the latest to come from Hitachi Energy for transformer supply. Earlier this year, Hitachi Energy Business Unit Transformers announced a strategic partnership with TenneT for the expansion and modernisation of its power transformer manufacturing facility in Bad Honnef, Germany.

The facility’s upgrade is expected to generate up to 100 new jobs in the region and address the rising demand for transformers for Europe’s power system stemming from increasing levels of renewable energy and electrification.

Both in Europe and in the US, transformer supply adequacies are coming under scrutiny.

According to Wood Mackenzie research, OEMs continue to cite material, equipment and skilled labour constraints as driving factors for transformer supply constraints and increased lead times.

They add that, based on conversations with developers and suppliers, as much as 25% of global renewable projects are predicted to be at risk of project delays due to such high transformer lead times.

In the US specifically, finds NREL, distribution transformer supply may need to increase by 160% to 260% by 2050 compared to 2021 levels to meet residential, commercial, industrial and transportation energy demands.