Firm keen to ride China's innovation, tech drive as its product facility in Xi'an starts operations

Hitachi Energy vows to continuously accelerate investment in grid network innovation and digitalization in China to further facilitate the country's construction of a digital power grid with increasing renewable power penetration, said a top company official.

Hitachi Energy, whose global headquarters is in Switzerland, will be investing more in the digitalization of grids, as well as solutions to ensure the safe and stable operation of power systems in China, said Claudio Facchin, CEO of Hitachi Energy, during the inauguration of a new power quality products factory in Xi'an, Shaanxi province, in June.

"Hitachi Energy has witnessed in China a tremendous push in innovation and technology during the past few years and we will be playing a key role in pushing forward potential innovation of the digital area in the country, leveraging our competence and knowledge that we have in all parts of the world. The urgent energy transition in China requires collaboration across markets and sectors to help face possible challenges posed to the country's power systems with increasing renewable power penetration," Facchin said.

The company unveiled its new quality products facility in Xi'an in June, which will be producing core components as well as solutions for ultra-high-voltage and extra-high-voltage transmission projects in China and worldwide, to ensure long-distance and high-efficiency renewable energy transmission, said the company.

Facchin said Hitachi Energy continues to see China as an essential part of that energy transition, particularly in terms of accelerating energy transition.

"We have announced quite a few of those investments and expansion in China, such as the inauguration of our Xi'an power quality products manufacturing base. We are not only expanding existing capacity, but also adding new capacity and new technology that will help us in complementing our portfolio of offerings for China and many other markets," he added.

An analyst said digital power grids, which involve artificial intelligence, big data, simulation modeling and the internet of things, will better facilitate the consumption of power increasingly produced by clean energy in the country.

China has been stepping up efforts in digital power grid in recent years, said Luo Zuoxian, head of intelligence and research at the Sinopec Economics and Development Research Institute.

The digital power grid construction sector has attracted massive investment in recent years from grid operators including State Grid of China and China Southern Power Grid, as well as overseas technology contributors like Hitachi Energy, he said.

According to China's modern energy system plan, the share of non-fossil energy consumption in the country will increase to around 20 percent by 2025, and the proportion of non-fossil power generation will be around 39 percent by then.

Hitachi Energy said the new plant in Xi'an will not only provide customized power quality solutions for industrial customers in industry, transport and infrastructure, but also export its products worldwide, including Europe, the Americas, Oceania, Africa, Southeast Asia and the Middle East.

"With more automated operations, digital management and larger capacity, the new plant will advance the rapid development and innovation of capacitors and power quality technology," said Zhang Jinquan, executive vice-president of Hitachi Energy.

"We will work with customers and partners to contribute to energy transition and high-quality development in China with leading power quality solutions."