Hitachi Energy CEO Claudio Facchin and Transgrid CEO Brett Redman 2

Transgrid and Hitachi Energy sign supply contract for transmission projects

15 March 2023

Transgrid has taken another step forward in accelerating procurement for critical transmission projects with the signing a contract with Hitachi Energy for key equipment.

Hitachi Energy will supply 15 x 500kV shunt reactors for use on the VNI West and HumeLink projects.

Shunt reactors are used for reactive power compensation and contribute to system voltage stability.

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.

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

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.

“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,” he said.

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.

“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,” Mr 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.

Transgrid’s Powering Together Tomorrow program will also procure:

  • 25 single phase transformers (to arrive in late 2024)
  • 14,500 km of transmission line conductor, enough to stretch from Sydney to Los Angeles.
  • 58,000 tonnes of steel to build 1,350 transmission towers.

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