Hitachi Energy secures US$700 million deal with E.ON to boost German grid

Hitachi Energy has signed a framework agreement worth up to US$700 million with German utility E.ON to supply transformers that will strengthen the country’s power grid and help stabilize energy costs. The deal forms part of E.ON’s new procurement program for essential grid expansion components.

Under the agreement, Hitachi Energy will reserve manufacturing capacity to ensure timely delivery of transformers, which are in global short supply. The company said it would use its investments and partnerships to address this shortage, stressing that the equipment is critical to Germany’s efforts to expand and modernise its power infrastructure.

Hitachi Energy is investing US$9 billion to boost transformer production, with Germany central to the plan through factory expansion in Bad Honnef and over 2,000 staff across eight sites.

German regulator Bundesnetzagentur and local utilities have warned that transformer shortages could delay new grid connections and block expansion projects designed to support clean power and electrification. The E.ON partnership aims to avert such delays by securing long-term supply.

Company CEO Andreas Schierenbeck said the expansion reflected Hitachi Energy’s responsibility as a global leader to accelerate capacity and provide critical equipment for customers. He added that partnerships such as the one with E.ON would help transmission operators and utilities build a more secure, resilient, and affordable energy system for Germany.

Hitachi Energy is the world’s largest transformer supplier, with more than two million distribution transformers and tens of thousands of larger units deployed globally. The company also leads in high-voltage direct current (HVDC) technology, integrating more than 150 GW of capacity, and remains the top provider of offshore wind grid systems, having connected over 54 GW to the grid. Its automation solutions currently support half of the world’s 250 largest utilities.