SPONSORED CONTENT
Australia’s energy transition has reached a critical inflection point. The shift from fossil fuels to renewables is no longer a future ambition—it is a present-day transformation driven by electrification across industries, the rapid expansion of data centres, and the accelerating influence of artificial intelligence. These forces are reshaping the energy landscape and ushering in a new electricity era.
While the momentum is undeniable, the path forward is anything but straightforward. The nation’s grid, designed for a different era, is under increasing pressure. The time has come to accelerate grid transformation and confront the complex questions that will define the future of Australia’s energy system.
A grid built for the past, facing the demands of the future
Australia’s electricity grid is unlike any other. Spanning vast distances across a sparsely populated continent, it was originally constructed to support centralized, baseload coal-fired generation. Its radial design, with limited meshing, makes it less adaptable to the bidirectional energy flows now required by a decentralised system.
The transition from coal to renewable generation presents a unique set of challenges. The grid must now accommodate energy from a diverse mix of sources—large-scale wind and solar farms, rooftop PV systems, and battery storage—while maintaining stability, reliability, and security.
The questions that can no longer be avoided
As legacy coal assets are retired and renewable generation scales up, the energy sector must grapple with several pressing questions:
- How can grid stability be maintained in a system dominated by intermittent, weather-dependent generation?
- What measures are needed to ensure energy security in the face of climate volatility and cyber threats?
- How will the grid cope with the surging demand from data centres and AI infrastructure?
- And how can a decentralised, multi-directional energy system be effectively managed across such a vast geography?
Innovation at the core of grid transformation
Technology providers are playing a pivotal role in enabling this transformation. According to Bernard Norton, Managing Director, Hitachi Energy in Australia, the company’s comprehensive portfolio of products, systems, services, and software supports every stage of the energy value chain.
“Our technologies are designed to enhance grid resilience, enable real-time optimisation, and ensure secure, stable operation in an increasingly complex environment. Australia’s energy transition, and associated grid transformation challenges, are operational imperatives that require immediate attention, investment, and innovation,” Norton said.
Hitachi Energy is investing heavily in research and development to reduce the environmental impact of its solutions. Its EconiQ range, for instance, replaces traditional insulating mediums in switchgear with eco-friendly alternatives and uses ester-based fluids in transformers to reduce emissions and improve sustainability, including the recent launch of the world’s highest-voltage SF6-free switchgear.
Australia: a global forerunner in energy innovation
Australia’s unique market conditions—its geography, high renewable penetration, and drive for innovation—have made it a global hub for energy innovation. Several pioneering projects are demonstrating the viability of next-generation grid technologies:
- Hitachi Energy’s Lilydale manufacturing and R&D facility in Victoria is contributing to both domestic and international innovation, with medium- and high-voltage technologies that support grid stability and decarbonisation.
- In an Australian-first, Marinus Link will use advanced converter technology at both ends of the link to stabilise and integrate more and more renewables into the power grid. The connection will enable the Tasmanian state to import excess supply of solar and wind produced in Victoria, while reserving its hydro and storing the extra energy.
- The ESCRI Dalrymple battery project in South Australia has proven the effectiveness of grid-forming inverters in strengthening the grid and improving reliability. Many countries are now looking towards Australia for this revolutionary technology.
- Hitachi Energy provides the essential converters and controls behind the Waratah Super Battery Project’s fast, automated response, allowing the system to perform its unique role in supporting the electricity grid as a shock absorber. The Waratah Super Battery Project, commissioned by the NSW Government, includes the battery developed and operated by Akaysha Energy.
- Investment in renewable energy zones (REZs) is driving the development of new transmission infrastructure, leveraging Hitachi Energy’s product and local service capabilities to deliver critical high-voltage equipment for Australia’s energy transition.
- Power transformers are playing an increasingly critical role in enabling the integration of renewable energy and battery energy storage systems (BESS) into the grid.
- Australia’s leading role in developing DC-coupled hybrid solar systems, enabled by advances in power electronics and digital innovation.
Digitalisation, AI, and cybersecurity: the rise of the intelligent grid
As the grid becomes more complex, digitalisation is emerging as a critical enabler. AI is being applied to boost the effectiveness of predictive maintenance, real-time grid optimisation, and demand forecasting. These capabilities unlock new levels of efficiency, reliability, and innovation. Sustainability-focused energy retailer SEC, for example, delivers 100% renewable energy to Victorian hospitals, schools, and public transport, leveraging Hitachi Energy’s energy trading and risk management platform to boost automation and risk management.
Digitalisation in the energy sector is transforming how we power the world, and IoT is one of the most important advancements fueling it. This is also why Hitachi’s Service and Digital strategy puts IoT technology at the core, with IoT solutions embedded into our digitally enabled services ecosystem, HMAX Energy. Hitachi Energy has been partnering with its utility customers for years on IoT-enabled solutions supporting their digital transformation initiatives and is recognized as one of the most prominent technology providers in this area.
When servicing transformers, advanced analytics and remote monitoring are enabling predictive maintenance and reducing downtime. These innovations are not only improving service outcomes but also setting new benchmarks for intelligent asset management across the global energy sector.
Energy security and security of supply in a changing climate
Australia’s energy system is increasingly exposed to climate-related risks. Extreme weather events, bushfires, and heatwaves are placing unprecedented stress on infrastructure. As the energy mix shifts toward renewables, maintaining reliability and scalability becomes even more critical.
Grid stability and the need for inertia are driving Hitachi Energy’s investment in developing an enhanced STATCOM range to solve power quality challenges for today’s and tomorrow’s power grids.
Advanced technologies, such as Flexible Alternating Current Transmission Systems (FACTS) and digital substations, are being deployed to enhance system strength and adaptability. High-performance transformers manage fluctuating loads and support bidirectional energy flows, making them indispensable in a system transitioning from centralised generation to distributed energy resources. These solutions are essential to ensuring that the grid can withstand both environmental and operational shocks.
Cybersecurity is now a fundamental component of energy security. Companies like Hitachi Energy are leveraging the combined IT and OT expertise of the broader Hitachi Group to deliver secure, intelligent grid solutions that can detect and respond to threats in real time.
Backed by global strength, focused on local impact
Hitachi Energy is one of the leading technology partners for the energy industry in Australia, with over 100 years’ presence, servicing customers across utilities, mining, transportation, and renewables. Its end-to-end solutions portfolio, comprising products, services, solutions, and software, enables greater flexibility, efficiency, and safety as Australia’s energy system is rapidly transforming.
Hitachi Energy’s efforts are supported by the broader Hitachi Group, which is executing one of the industry’s most ambitious investment programs—over USD$6 billion and 15,000 new employees globally by 2027. This scale of investment reflects the urgency and complexity of the energy transition.
By combining deep expertise in operational technology with advanced digital capabilities, the company is helping to shape the next phase of the energy sector. Its commitment to sustainability, security, and affordability is aligned with the broader goal of making electricity more accessible and empowering societies to thrive.
The road ahead
Australia’s energy transition has passed the tipping point. The challenge now is to accelerate grid transformation, invest in the right technologies, and build the partnerships needed to ensure a stable, secure, and sustainable energy future.
The questions are difficult, but they can no longer be deferred. The answers will define not just the future of the grid, but the future of the nation’s economy, environment, and society.
Hitachi Energy continues to push the boundaries of what’s possible in energy innovation, investing in R&D, global capacity, and partnerships in the quest for sustainability.
The technology and strategies necessary to achieve a sustainable energy future are available today. The industry must focus on collaboration and co-creation among stakeholders to drive this transition effectively.
For more information visit Hitachi Energy.
