Hitachi Energy wins Canadian funding to boost HVDC

The Canadian government is providing C$30m ($21.9m) in funding to Hitachi Energy to support projects aimed at expanding its high-voltage direct current (HVDC) manufacturing and testing capabilities, technology that is a key enabler for integrating large-scale renewable energy into power grids.

The funding will help Hitachi Energy establish a new HVDC simulation centre in Montreal and to upgrade and modernise its power transformer factory in nearby Varennes, Quebec,

The simulation centre will help shorten the time to market for large transmission projects by employing virtual testing of HVDC systems before installation.

Due for completion by the end of 2027, it will provide a digital representation of its HVDC control and protection system, including real-time transmission network simulation.

Hitachi said the facility will also enable collaboration with local and international customers to design, model, and test their systems, improving the deployment time for large and complex projects.

This initiative aligns with Canada’s goal to achieve carbon neutrality by 2050, according to officials in Prime Minister Justin Trudeau’s government.

“In a net-zero future, Canadian electricity generation capacity will need to be two to three times greater than today. Hitachi Energy’s transformers and HVDC technology will play a key role in expanding Canadian and North American electricity capability,” said Philippe Champagne, minister of innovation, science and industry.

The company is establishing a new onsite transformer testing facility in Varennes. The factory designs and engineers a range of transformers. These include large power step-up transformers, auto-transformers with very high voltage shunt reactors, and transformers for static compensators and HVDC transmission systems.

The plant’s manufacturing capacity ranges from 100 to 1,200MVA (megavolt amperes) and its operating voltage is as high as 800kV, among the highest in the world.

Private consultancies have warned that a supply shortage of electrical distribution transformers is hindering energy transition progress in the neigbouring US. In April, Wood Mackenzie noted that “high lead times and rising manufacturing costs are at risk of causing expensive project delays and preventing power plants from being brought online.”

Supply issues during the Covid-19 pandemic negatively impacted manufacturing of components and brought into focus US over-dependence on foreign sourcing for both transformer materials and large power transformer units.