Hitachi Energy expands amid India's growing power needs
POWER & RENEWABLE ENERGY

Hitachi Energy expands amid India's growing power needs

Hitachi Energy expressed its intention to establish additional global capability centres in India as part of its strategy to enhance local operations, amidst the increasing demand for energy and efforts to expand renewable energy production within the country. The Zurich-based company, known for manufacturing transformers and large-scale power transmitters, currently operates a GCC in India. This move comes in response to the government's efforts to boost power generation, particularly in renewable energy, due to the high demand for electricity.

Venu Nuguri, the managing director and CEO of Hitachi Energy's India unit, mentioned that they are considering Hyderabad and Pune for the new GCC. He anticipated that the process might take anywhere from six months to a year. Nuguri stated that the final decision regarding the location of the centre(s) would depend on demand, refraining from disclosing specific financial information about the investment.

Nuguri further explained that the new GCC, designed as a cost-effective offshore facility, would collaborate with Hitachi Energy India but would operate under a separate entity in India, unlisted, under Hitachi Energy in Switzerland.

The Indian government's introduction of incentives for transitioning to green energy aims to achieve 500 GW of installed capacity through non-fossil fuel sources by 2030. In fiscal year 2023, India witnessed an 8% growth in power consumption. The International Energy Agency predicts that India's electricity demand will increase significantly over the next three years, akin to the current consumption level of the United Kingdom. Nuguri emphasized the necessity for the market to generate three to four times the current capacity to meet projected demand, consequently leading to a two to threefold increase in the company's order book compared to market growth.

Nuguri revealed that as of fiscal year 2023, the company's order backlog stood at Rs 72 billion.

Hitachi Energy expressed its intention to establish additional global capability centres in India as part of its strategy to enhance local operations, amidst the increasing demand for energy and efforts to expand renewable energy production within the country. The Zurich-based company, known for manufacturing transformers and large-scale power transmitters, currently operates a GCC in India. This move comes in response to the government's efforts to boost power generation, particularly in renewable energy, due to the high demand for electricity. Venu Nuguri, the managing director and CEO of Hitachi Energy's India unit, mentioned that they are considering Hyderabad and Pune for the new GCC. He anticipated that the process might take anywhere from six months to a year. Nuguri stated that the final decision regarding the location of the centre(s) would depend on demand, refraining from disclosing specific financial information about the investment. Nuguri further explained that the new GCC, designed as a cost-effective offshore facility, would collaborate with Hitachi Energy India but would operate under a separate entity in India, unlisted, under Hitachi Energy in Switzerland. The Indian government's introduction of incentives for transitioning to green energy aims to achieve 500 GW of installed capacity through non-fossil fuel sources by 2030. In fiscal year 2023, India witnessed an 8% growth in power consumption. The International Energy Agency predicts that India's electricity demand will increase significantly over the next three years, akin to the current consumption level of the United Kingdom. Nuguri emphasized the necessity for the market to generate three to four times the current capacity to meet projected demand, consequently leading to a two to threefold increase in the company's order book compared to market growth. Nuguri revealed that as of fiscal year 2023, the company's order backlog stood at Rs 72 billion.

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