Transgrid and Hitachi Energy ink equipment supply deal

Hitachi Energy CEO Claudio Facchin shaking hands with Transgrid CEO Brett Redman in Hitachi's offices in Tokyo
Hitachi Energy CEO Claudio Facchin and Transgrid CEO Brett Redman in Tokyo

Transmission company Transgrid has signed a major supply contract with Hitachi Energy for the procurement of key equipment to be used for the VNI West and HumeLink transmission projects.

Hitachi Energy will supply 15 x 500kV shunt reactors—used for reactive power compensation and contribute to system voltage stability—for use on the VNI West and HumeLink projects. 

Related article: Transgrid secures $385m underwrite for critical supplies

The contract was announced after Transgrid CEO Brett Redman travelled to Tokyo to meet Hitachi Energy CEO Claudio Facchin. 

“Delivering Australia’s energy transition comes with a big shopping list and contracts like this one with Hitachi Energy will secure the equipment we need to deliver nation-critical transmission projects,” Redman said.

“HumeLink and VNI West together with EnergyConnect will benefit millions of consumers in Victoria, NSW, and South Australia.”

Transgrid has bundled procurement for the three projects into a single program called Powering Tomorrow Together, which is expected to save up to $500 million. 

“Australians want cheaper, cleaner energy and we’re accelerating our program of works to bring it to them and make it possible,” Redman said.

“This enables us to compete globally with other nations and energy companies for highly-sought-after equipment and deliver the projects faster and cheaper for consumers.”

Hitachi Energy CEO Claudio Facchin said the shunt reactors will play a key role in increasing the energy efficiency of the system and support Australia’s fast-paced energy transition. 

Related article: VNI West transmission project to be fast tracked

“Our technologically advanced shunt reactors are designed and built for reliability, durability, and efficiency to meet the most stringent requirements and contribute to a sustainable, flexible and secure energy system,” Facchin said. 

Hitachi Energy will design, manufacture, and supply the shunt reactors, then supervise the installation and commissioning at various project sites in NSW. The shunt reactors are due to be delivered in 2025. 

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