Hitachi Energy, a global leader in power technologies, has signed a landmark long-term agreement with E.ON for the supply of power and distribution transformers worth up to $700 million USD. The deal comes at a crucial time as Germany accelerates the expansion of its electricity grid to meet the surging demand from AI, electric vehicles, heat pumps, hydrogen, and data centers.
Key Highlights:
- Agreement Between: Hitachi Energy and E.ON
- Deal Value: Up to $700 million USD
- Scope of Work: Long-term supply of power and distribution transformers
- Geographic Focus: Germany
- Strategic Goal: Strengthen Germany’s power grid amid rising electricity demand
- Manufacturing Support: Facilities in Bad Honnef, Brilon, and Roigheim, Germany
- Workforce Involved: Over 2,000 employees in Germany
- Market Challenge Addressed: Global shortage of transformers
- Wider Impact: Supports Germany’s €500 billion government fund for energy and infrastructure
- Technology Focus: Renewable energy integration and grid modernization
Under this strategic partnership, Hitachi Energy will provide transformers essential for the stable and efficient transmission of electricity across E.ON’s expanding infrastructure. The deal secures manufacturing capacity at Hitachi Energy’s key German sites in Bad Honnef, Brilon, and Roigheim, where more than 2,000 professionals support critical power equipment production.
This agreement supports Germany’s broader energy goals under its €500 billion energy and infrastructure fund, which focuses on sustainability, security, and resilience. With power consumption in Germany projected to increase from 96 TWh in 2024 to 236 TWh by 2035, this deal is a vital step toward ensuring grid reliability.
Andreas Schierenbeck, CEO of Hitachi Energy, said:
“Strategic partnerships like this empower utilities and industries to build a more secure, sustainable, and affordable energy future for Germany.”
The collaboration directly addresses the global shortage of transformers, which has become a major bottleneck for infrastructure and energy projects worldwide. As part of a broader global effort, Hitachi Energy is investing $9 billion to expand transformer production capacity across multiple regions.
This supply agreement also aligns with E.ON’s initiative for long-term strategic procurement, ensuring timely project execution, reduced delivery lead times, and improved cost management. The transformers delivered will play a key role in integrating renewable energy and maintaining a reliable power supply as Germany transitions to a greener economy.
Hitachi Energy’s ongoing innovation and leadership in transformer technology and grid automation support over 2 million distribution transformers worldwide and power 25% of the global high-voltage switchgear market.
This agreement sets a strong example of how private-public collaboration and long-term planning can address infrastructure challenges in the energy transition era.
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