Hitachi Energy to help Sweden's transmission grid increase power capacity

• Svenska kraftnät invests $300 million USD (3 billion SEK) to increase power capacity to transmit clean energy from the north to the south
• Advanced technology enables the transfer of hydro and wind power, supporting Sweden's renewable energy mix
• Power quality solution from Hitachi Energy will allow enough power to serve an additional one million households

Zurich, November 18, 2024 – Hitachi Energy, along with consortium partner Kanonaden Entreprenad Mälardalen AB, will deploy Sweden's largest-ever power quality solution for Svenska kraftnät to increase the capacity of existing transmission lines and increase the country's renewable energy consumption from hydro and wind resources in North Sweden.

The consortium order is worth $300 million USD (3 billion SEK), for which Hitachi Energy will install up to ten series compensation systems, expected to be operational by 2030. This technology is cost-effective and eco-efficient, as it improves the power transfer capacity of existing power lines. With more power transmitted, an additional one million households will be served.

"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 centers."

By installing a series of compensation systems at one or more suitable points in a power grid, it is possible to increase the transmitted power by up to 50 percent through new and existing power lines. From an electrical point of view, a series-compensated system enables more power to be transmitted over existing power lines and improves the voltage stability in a power grid. Series compensation offers valuable economic and environmental benefits.

This order follows the multi-million-dollar order received in August this year from Svenska kraftnät1 to provide critical energy infrastructure such as power transformers and shunt reactors to strengthen the Swedish grid.

Hitachi Energy's ongoing investments in Sweden, including a $330 million USD (3.7 billion SEK), highlight its commitment to supporting local capacity expansion and talent attraction. These efforts are integral to meeting the growing demand for clean and flexible energy systems worldwide. This is part of the company's recently announced plans to invest $6 billion USD globally, in expanding manufacturing capacity, engineering, digital, R&D, and partnerships, by 2027. Hitachi Energy is significantly expanding and modernizing its flagship factories in Ludvika and Smedjebacken. In particular, Smedjebacken was inaugurated on Nov. 142 in the presence of Ebba Busch, Minister for Energy, Business and Industry and Deputy Prime Minister in Sweden. This further contributes to creating new attractive workplaces in the country where Hitachi Energy will hire 2,000 additional employees by 2027.

1

Hitachi Energy receives record order from Svenska kraftnät to strengthen the Swedish power grid

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Hitachi Energy inaugurates new expanded factory in Smedjebacken

About Hitachi Energy

Hitachi Energy is a global technology leader that is advancing a sustainable energy future for all. We are advancing the world's energy system to be more sustainable, flexible and secure and we collaborate with customers and partners to enable a sustainable energy future – for today's generations and those to come. Hitachi Energy has a proven track record and unparalleled installed base in more than 140 countries, serving customers in utility, industry, transportation, data centers and infrastructure sectors. With innovative technologies and services including the integration of more than 150 gigawatts of HVDC links into the power system, we help make the energy value chain more efficient, making electricity more accessible to all. Together with stakeholders across sectors and geographies, we enable the digital transformation required to accelerate the energy transition towards a carbon-neutral future. Headquartered in Switzerland, we employ around 45,000 people in 60 countries and generate business volumes of around $13 billion USD.
https://www.hitachienergy.com

About Hitachi, Ltd.

Hitachi drives Social Innovation Business, creating a sustainable society through the use of data and technology. We solve customers' and society's challenges with Lumada solutions leveraging IT, OT (Operational Technology) and products. Hitachi operates under the 3 business sectors of "Digital Systems & Services" – supporting our customers' digital transformation; "Green Energy & Mobility" – contributing to a decarbonized society through energy and railway systems, and "Connective Industries" – connecting products through digital technology to provide solutions in various industries. Driven by Digital, Green, and Innovation, we aim for growth through co-creation with our customers. The company's revenues as 3 sectors for fiscal year 2023 (ended March 31, 2024) totaled 8,564.3 billion yen, with 573 consolidated subsidiaries and approximately 270,000 employees worldwide. For more information on Hitachi, please visit the company's website at https://www.hitachi.com.