Hitachi Energy India on Monday said that it is planning to invest around Rs 2,000 crore over the next four to five years in India's energy sector. The company is investing in capacity expansion and factory relocation to enhance transmission projects.
The company in a press note stated that key investments include a capacity expansion of the large power transformers factory, upgraded testing capabilities for speciality transformers at the small power transformers and the relocation of the bushings factory, all crucial to further develop the country’s transmission projects to meet increasing energy demands.
On the company's investment plans in India, Andreas Schierenbeck, Global Chief Executive Officer (CEO), Hitachi Energy said, “The energy challenge before us is bigger than one company, one team, and one individual. As the energy transition gathers pace with increased electrification and integration of renewables, power grids are becoming increasingly significant both from a capacity and complexity perspective."
He added, "We remain focused on advancing a sustainable energy future for all and India is an important market in our effort to make the world's energy system more sustainable, flexible and secure.”
Schierenbeck stated the company has been continuously investing in India over the past seven and a half decades. The new investments are geared toward expanding and upgrading capacity and talent, strengthening the supply chain and enabling flexibility through digitalisation in line with the Hitachi Energy 2030 strategic growth plan.
The company also said that the capacity of the traction transformers factory will also be boosted to support the modernization of the Indian railway network. "This investment will bolster the manufacturing capacity of Hitachi Energy India's production facilities," according to the firm.
The company further mentioned that Hitachi plans are underway to expand the network control solutions offering and develop and manufacture localized Grid eXpand and Grid eMotion. "The company will also introduce its maiden medium voltage offering- REF650—to the Indian market," said Hitachi.
Meanwhile, several reports have stated that India's energy sector is poised for significant growth, driven by increasing demand and the government's focus on renewable energy. The power generation capacity is expected to reach 620 GW by 2030, with renewables accounting for 40 per cent of the mix, as per the Ministry of Power.
The country's transmission network is also expanding, with a planned investment of Rs 2.5 lakh crore (USD 33.5 billion) in the next five years, stated the Power Grid Corporation of India.
