Global | November 26, 2024

New Hitachi Energy Boss Powers Ahead as Green Transition Boosts Business

Andreas Schierenbeck says the biggest challenge is “coping with the pace” of demand.

 

Image for illustration purposes.

Andreas Schierenbeck, the new CEO of Hitachi Energy, discussed the challenges and opportunities in the power technology sector during a visit to the company’s Quebec operations in November 2024. Here are the key points from his interview:

Industry Challenges

  • The power technology sector is experiencing unprecedented demand growth due to decarbonization and electrification efforts worldwide.
  • This surge in demand is putting significant stress on supply chains and presenting challenges for companies producing high-voltage systems and equipment.
  • The industry is transitioning from a period of slow growth to rapid expansion, with Hitachi Energy’s order book growing by 15% annually.

Hitachi Energy’s Response

  • The company is investing US$4.5 billion in manufacturing, engineering, digital, and R&D divisions.
  • An additional $1.5 billion is being allocated to increase transformer production globally.
  • In Canada, Hitachi Energy is investing $140 million, matched by government support, to modernize its Varennes factory near Montreal and other high-tech facilities.

Future Outlook

  • Schierenbeck emphasized the importance of energy storage technologies to manage the increasing volumes of variable renewable energy on power grids.
  • He discussed the need for a broad spectrum of storage solutions, from short-term batteries to long-duration concepts.
  • The CEO highlighted the challenge of managing “dark doldrums” or “dunkelflaute” periods when renewable energy production is low.

Geopolitical Impact

  • Recent global events, including the COVID-19 pandemic and geopolitical tensions, have accelerated the energy transition.
  • Schierenbeck noted an increased focus on the “energy triangle” – affordability, security, and reliability.

Schierenbeck concluded by stating that renewables are the answer to future energy needs, but political will, permitting processes, and finding compromises with industry and the public are limiting factors in infrastructure development.

Source: National Observer