Hitachi Energy, a global leader in electrification and power grid solutions, has announced a landmark agreement with E.ON, valued at up to $700 million USD, to supply critical transformers that will strengthen and expand Germany’s national energy grid. This long-term partnership is part of E.ON’s broader procurement initiative to secure essential grid infrastructure components and address growing energy demands.
Under the terms of the agreement, Hitachi Energy will reserve dedicated manufacturing capacity to meet E.ON’s transformer needs, playing a pivotal role in enhancing grid reliability, affordability, and security across the country. This strategic commitment also aims to mitigate the global transformer supply shortage-an issue currently impacting grid modernization efforts worldwide.
“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.”
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Supporting Germany’s Clean Energy Transition
The agreement comes at a pivotal moment for Germany, where energy affordability and supply security remain key concerns for both citizens and policymakers. Recent elections highlighted energy prices as a top voter concern, with over 70% of Germans citing rising living costs as their primary worry. As Germany ramps up electrification across sectors—from transportation and heating to AI-driven data centers-electricity demand is projected to more than double, rising from 96 TWh in 2024 to 236 TWh by 2035.
Transformers are essential to the efficient transmission and distribution of electricity. However, global supply chain constraints have led to a shortage of these critical components, risking delays in renewable energy integration and infrastructure upgrades. In response, Hitachi Energy has launched the industry’s largest investment program, committing $9 billion USD to scale production and meet accelerating demand.
The partnership with E.ON supports critical national goals set by Bundesnetzagentur and local utilities, who are urgently seeking transformer solutions to avoid delays in grid connections and prevent disruptions to planned routing and infrastructure upgrades.