Hitachi Energy has signed long-term framework agreements worth $398m (€350m) with French distribution system operator Enedis for the supply of distribution and power transformers.
The agreements are intended to provide Enedis with a more secure supply of transformers as grid investment increases in France. Transformers are among the components facing supply constraints globally, potentially slowing the expansion and upgrade of electricity networks.
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The contracts cover an extended period and build on a relationship between the two companies spanning almost two decades. Hitachi Energy said its manufacturing operations in Italy and Poland will support deliveries under the agreements.
Bruno Melles, CEO of Hitachi Energy’s Transformers business, said the arrangements would help secure transformer capacity for Enedis while providing greater certainty over availability and costs.
“As global demand for grid infrastructure intensifies, long-term agreements provide customers with certainty, availability and cost predictability needed to modernize and expand their networks on time,” he said.
Demand for additional grid capacity is being driven in part by France’s plans to reduce its reliance on fossil fuels and increase the role of electricity in its energy mix. The French Government aims to cut fossil fuels’ share of the country’s energy mix from 60% to 40% by 2030, according to Hitachi Energy.
The agreements also include Environmental Product Declarations for the transformers. These independently verified assessments measure a product’s environmental impacts over its life cycle using the ISO 14025 framework.
Hitachi Energy said the contracts will also incorporate data-driven asset monitoring and life cycle services designed to identify potential problems earlier, reduce unplanned outages and extend the operating life of transformers.
The company currently operates more than 60 transformer factories and in excess of 30 service centres worldwide.
For Enedis, the agreements provide a longer-term procurement framework for equipment needed as France’s electricity distribution network adapts to changing demand and increasing electrification.
