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Hitachi Energy secures $300 million contract to boost Sweden’s power capacity

Hitachi Energy secures $300 million contract to boost Sweden's power capacity

Hitachi Energy, in partnership with Kanonaden Entreprenad Mälardalen AB, has been awarded a $300 million USD (3 billion SEK) contract by Svenska kraftnät to enhance Sweden’s power transmission network. 

The project involves deploying up to ten series compensation systems by 2030, aiming to increase the capacity of existing transmission lines and facilitate the transmission of renewable energy from hydro and wind sources in northern Sweden to the south.

The implementation of these power quality solutions is expected to provide enough power to serve an additional one million households, supporting Sweden’s renewable energy mix and contributing to energy security.

“Hitachi Energy’s power quality solution will play an important role in helping Sweden achieve energy security and accelerate its transition to clean energy,” said Niklas Persson, Managing Director of Hitachi Energy’s Business Unit Grid Integration. 

“Our compensation systems will reliably transfer renewable power from northern generation sources to the southern urban areas, the country’s economic engine. This will mitigate one of the Swedish grid’s main challenges of transmission line losses by increasing system efficiency and ensuring a seamless delivery of renewable power to high-consumption centres.”

By installing series compensation systems at suitable points in the power grid, the transmitted power can be increased by up to 50% through existing power lines. This technology improves voltage stability and offers economic and environmental benefits.

This contract follows a multi-million-dollar order received in August from Svenska kraftnät to provide critical energy infrastructure, including power transformers and shunt reactors, to strengthen the Swedish grid.

Hitachi Energy is investing $330 million USD (3.7 billion SEK) in Sweden to expand local capacity and attract talent, as part of its global plan to invest $6 billion USD by 2027 in manufacturing capacity, engineering, digital, R&D, and partnerships. Additionally, the company is significantly expanding and modernising its flagship factories in Ludvika and Smedjebacken. 

These investments are expected to create new workplaces in the country, with Hitachi Energy planning to hire 2,000 additional employees in Sweden by 2027.

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