ABB and Hitachi to form strategic power grid partnership

ABB and Hitachi entered into a joint venture on Tuesday for providing high voltage direct current (HVDC) system solutions in Japan. The new entity, to be based in Tokyo, will be responsible for the design, engineering, supply and after-sales services related to the DC system of HVDC projects. Hitachi and ABB will take equity interests of 51 per cent and 49 per cent respectively.
 

The new joint venture will combine Hitachi’s sales network, project management expertise, quality assurance processes and delivery performance record, with ABB’s HVDC technologies, and contribute to innovation in electric power systems in Japan.
 

The joint venture is expected to commence operations in the coming months, subject to the necessary approvals and statutory procedures.
 

“Since the first development in the 1970s, Hitachi has participated in every HVDC project in Japan. By enhancing and expanding the HVDC business through its partnership with ABB, which has a strong performance record in the global market, Hitachi will continue to contribute to the stabilization of Japan’s electric power grid.” said Hiroaki Nakanishi, Chairman & CEO of Hitachi Ltd.
 

Both Hitachi and ABB have noticeable presence in the Indian market as well in sectors such as power, renewable and infrastructure.
 

“ABB pioneered HVDC 60 years ago and has continually pushed the boundaries of this technology. Our presence across half the world’s installed base and our capability to develop and manufacture all major components of the HVDC value chain inhouse have put us in a leading position in the industry”, said Ulrich Spiesshofer, CEO of ABB. 
 

HVDC is a technology used for transmitting electricity between two grid systems. The system is ideal for long-distance transmission due to its ability to minimize electricity losses and to its lower space requirements and construction costs. It is also suited well for interconnections between two different frequencies.