Hitachi Energy, a global leader in electrification, announced the signing of a contract worth up to $700 million with E.ON for the supply of transformers for Germany’s power grid to enhance energy security, flexibility, and affordability in the country. This contract is part of E.ON’s new initiative for procuring key components for power grid expansion. Through this long-term partnership, Hitachi Energy will leverage its market presence, investments, and partnerships to secure production capacity and lead industry efforts to address the global transformer shortage, which are critical components of power grid infrastructure.
From left to right: Norbert Beatrix, Director Hub – Europe, Transformers Business Hitachi Energy; Maxine Ghavi, Executive Vice President and Regional Director for Europe at Hitachi Energy; Lisbeth Buschkühl, Senior Vice President Supply Chain and Chief Procurement Officer, E.ON; Thomas König, Chief Operating Officer Networks, E.ON.
The project follows Germany’s recent parliamentary elections, where energy prices and reliability were key issues for voters. Over 70 percent of Germans identified rising living costs as their main concern, with energy prices topping this list¹. Electricity demand in Germany is projected to rise dramatically – from 96 terawatt-hours (TWh) in 2024 to 236 TWh in 2035², driven by the development of artificial intelligence, data centers, and electrification of key industrial sectors, including vehicles, heat pumps, and hydrogen technology.
Transformers are crucial for enabling efficient transmission and distribution of electrical energy. There is currently a serious global shortage of these devices, which is why Hitachi Energy is implementing the industry’s largest investment plan, allocating $9 billion to increase production capacity worldwide. Germany plays a key role in this program, as evidenced by the recent announcement of the expansion of the transformer factory in Bad Honnef. The company has deep roots in the country, employing over 2,000 people across eight locations, including three key manufacturing facilities: in Bad Honnef, Brilon, and Roigheim.
The Bundesnetzagentur and other German utilities and grid operators urgently need transformers to prevent grid connection delays, blockages of new grid routes, and threats to ambitious expansion plans aimed at supporting clean energy development and electrification³. Under the framework agreement with E.ON, Hitachi Energy will supply a significant portion of transformers, reserving production capacity to support the accelerated expansion and modernization of Germany’s power grid.
“The growing importance of power grids requires bold investments and breakthrough innovations to shape tomorrow’s energy systems,” says Andreas Schierenbeck, CEO of Hitachi Energy. “Our expansion goes beyond business – it reflects our responsibility as a global leader to accelerate production and deliver critical equipment that our customers urgently need. Strategic partnerships like this enable transmission system operators, power plants, and industry to build a more sustainable, secure, flexible, and affordable energy system for Germany.”
Hitachi Energy is a global leader in transformers, boasting over two million distribution transformers and tens of thousands of other transformers installed worldwide. In high-voltage technology, every fourth switchgear in operation comes from Hitachi Energy.
As the inventor and market leader in high-voltage direct current (HVDC) technology, Hitachi Energy has integrated over 150 gigawatts (GW) of power – enough to supply two-thirds of European households. The company is also a leading supplier of grid systems for offshore wind farms, connecting over 54 GW to the grid through its competence centers in Germany and Sweden. The company’s grid automation solutions support half of the world’s 250 largest energy companies.
References:
- https://www.reuters.com/world/europe/germans-worried-about-economic-malaise-ahead-election-survey-2025-02-10/?utm_source=chatgpt.com
- https://www.barrons.com/articles/ai-data-centers-energy-nuclear-stocks-d6c4c019?utm_source=chatgpt.com
- https://www.bundesnetzagentur.de/SharedDocs/Downloads/EN/Areas/ElectricityGas/FlexibilityPaper_EN.pdf?__blob=publicationFile&v=1
About Hitachi Energy
Hitachi Energy is a global technology leader in electrification, providing a sustainable energy future through innovative grid solutions based on digital technology. Over three billion people worldwide rely on our solutions every day. For over 100 years, our pioneering technologies of strategic importance, such as high-voltage products, transformers, automation, and power electronics, have enabled us to meet the most pressing energy challenge of our time – balancing growing demand for electricity while reducing carbon emissions in the power system. With an unmatched installed base in over 140 countries, we co-create and build long-term partnerships in the utilities, industry, transport, data centers, and infrastructure sectors. Our headquarters is located in Switzerland, and we employ over 50,000 people in 60 countries, generating revenues of $16 billion.
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About Hitachi
Through its Social Innovation Business (SIB) utilizing IT, OT (Operational Technology) and products, Hitachi supports social harmony where the environment, well-being, and economic growth remain in balance. Hitachi operates globally in four sectors – Digital Systems and Services, Energy and Mobility, Connected Industry, and Strategic SIB Business Unit for new emerging industries. With Lumada solutions at its core, Hitachi generates value from the integration of data, technology, and expertise in pursuit of solving customer needs and social challenges. Revenue for fiscal year 2024 (ended March 31, 2025) was 9,783.3 billion yen, with 618 consolidated subsidiaries and approximately 280,000 employees worldwide. More information at https://www.hitachi.com.
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