Hitachi Energy has secured a contract worth up to $700 million (SFr563.85 million) with E.ON, a major German network operator, to provide transformers for enhancing Germany’s electricity grid. The agreement supports efforts to improve energy security, resilience, and affordability across the country.

Hitachi Energy will provide a significant portion of the transformers by allocating manufacturing capacity for the expansion of the German power grid.

The contract aligns with a €500 billion ($587 billion) infrastructure investment plan announced by the German government, emphasizing energy sector development. It forms part of E.ON’s procurement initiative focused on essential grid expansion components, addressing rising electricity demands driven by advancements in AI, data centers, and the electrification of industries like vehicles, heat pumps, and hydrogen production. According to industry estimates, Germany’s electricity demand is projected to increase from 96 terawatt-hours in 2024 to 236 terawatt-hours by 2035.

The partnership enables Hitachi Energy to address the global transformer shortage, a critical component for power grid infrastructure. The company will allocate manufacturing capacity, including from its Bad Honnef factory in Germany, as part of a $9 billion global investment plan to expand production. This effort aims to prevent grid connection delays and support the modernization of Germany’s power infrastructure, facilitating the transition to cleaner energy sources.

Andreas Schierenbeck, CEO of Hitachi Energy, stated: “The growing importance of power grids demands bold investments and breakthrough innovations to shape the energy systems of the future.” He added: “Our expansion goes beyond business – it reflects our responsibility as a global leader to accelerate capacity and deliver the critical equipment our customers urgently need. Strategic partnerships like this one empower TSOs, utilities and industry to build a more sustainable, secure, resilient and affordable energy system for Germany.”

The initiative responds to growing public concern, with 70% of Germans expressing worry over rising energy costs, as reported by Reuters. In February 2025, E.ON urged the German government to enhance investment returns in the energy sector to support further grid development. By securing a reliable supply of transformers, this agreement strengthens Germany’s ability to meet increasing energy demands while advancing sustainable energy goals.

Hitachi Energy’s collaboration with E.ON underscores its commitment to supporting Germany’s energy infrastructure through advanced technology and strategic partnerships, ensuring a stable and efficient power supply for industries and consumers alike.