Hitachi ABB Power Grids bets on growth in RE, discoms' privatisation

Power technology major Hitachi ABB Power Grids is betting on growth in renewable energy (RE) in India and evacuation of the same. The company registered a 200 per cent year-on-year growth in the renewables segment with about 8.5 GW of cumulative solar orders from major energy companies.

Speaking with Business Standard, N Venu, managing director-India, Hitachi ABB Power Grids, said the pipeline for renewable projects remains healthy.

“We have seen good activity in solar and wind and have been able to get transformer and sub-station orders from large players in the renewables segment from different parts of India. Our offerings are not limited to integration, but also efficient transmission of utility scale renewable power, with minimum footprint, and process automation and asset management that offer intelligent insight into mission critical assets,” Venu said.

The company, which is also looking at green corridors as a major potential business, is hopeful of getting more projects in this segment. Green corridors are dedicated power transmission systems for RE.

Out of the nearly 20 green corridor projects which are to tendered, 14 are under bidding currently. The Covid-19 pandemic delayed the project offering, but Hitachi ABB Power Grid is hopeful of enhanced activity in this space.

“Transmission projects, including those to evacuate power from the solar parks under the green corridor projects, and grid strengthening schemes got a boost this year, with five packages being awarded through the tendering route. We are geared up to secure the targeted opportunities in transmission space,” Venu said.

Hitachi ABB Power Grids, apart from supplying grid connectivity and automation services to power sector, is also active in other sectors such as railways, data centres, etc.

Venu said as the company is betting big on India’s energy transition, it aims to grow faster than the market. “We see vast potential for growth in markets such as data centers, e-mobility, renewable energy, and power quality and have a wide portfolio of future-ready and state-of-the-art products, software, and services to cater to them,” he said.

Electric mobility is a segment where the company is offering integrated solutions for charging and energy storage. The company has launched ‘Grid-eMotion Fleet’ for fleet-level public charging of e-buses with data management applications.

Another project that Venu said the company is looking forward to is the ‘The One Sun One World One Grid’ initiative by the Indian government aiming at a cross-country grid for seamless transfer of RE. Another avenue is privatisation of state-owned power distribution companies.

“This will expand opportunities for our entire portfolio ranging from grid automation, integration, transformers, power quality, and HV products,” Venu said.

Hitachi ABB Power Grids registered a 55 per cent increase in profit during the Q4FY21 against the same period last fiscal. Its revenues, however, declined by 7.5 per cent in the same period. The company’s order book stood at Rs 826 crore during Q4.

Commenting on future growth, Venu said that increasing power demand will continue to drive business growth. “Considering the fact that India may need to add a power system the size of the EU to what it has now to meet the power demand of its vast and growing population, the grid will have to be much more advanced and flexible. India’s economic growth relies on a bigger and better grid. And, we see ourselves playing a key role in shaping a stronger, smarter, and greener one,” he said.