February 18, 2025 • 19 mins
North America is on an exciting journey to reshape its dynamic energy landscape – starting with the adoption of SF6-free technologies and soon, introducing 800 kV high-voltage transmission lines.
This shift isn’t just about adopting the latest innovations – it's about rethinking how we deliver energy
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:01):
High voltage takes center stagein this season of Hitachi
Energy's Power Pulse podcast.
We promise to bring you great contentfrom the brightest minds in the business.
We'll discuss challenges, opportunities,and all the hot topics
any high voltage enthusiast
or anyone interested in sustainability,for that matter, is sure to enjoy.
In this episode, we'reputting the spotlight on North America,
(00:21):
a powerhouse regionin the global energy transition.
The region's energy landscapeis making significant contributions
in the decarbonization journey.
Here are just a couple of literal powermoves happening in the region.
In the US, there are massivewind farms in Texas, growing solar power
generation in California, and stateslike New York
are taking a huge leap in offshorewind farm developments.
(00:42):
While up north, Canada is making its markwith hydroelectric projects
while growing wind and solar capacityto meet ambitious climate goals.
To guide us through all of this,I am joined by Stefano Cervidi,
Market Managerfor High Voltage at Hitachi Energy.
He will walk us through the innovations,challenges and opportunities
that are defining the NorthAmerican landscape.
Sit back, relaxand listen to this insightful episode.
(01:04):
Hi, Stefano.
Welcome to the Power Pulse podcast.How are you? Good.
Thank you very much, Bárbara.Thank you for having me here.
Thanks for coming in.
So we always start each podcast episodeby asking our guests
to tell us a little bit about themselves.
I knowthat you've had quite a varied career,
and you've lived inquite a few interesting places.
Yeah,I mean, when I was in the university,
I had one year Erasmus exchange in Spain.
(01:26):
Then as soon as I finished my master'sdegree, I went to London actually.
London? Well, yeah.
Whereabouts were you?
It was six months and it was an eastern
part of London, Walthamstow E17. E17.
I think there was also a boy bandcalled this, right?
There was, yeah. Everyone knows E17.
Everyone, our generation at least. Yeah.
And then I moved to France, to Paris,to start working there.
(01:49):
And then I got hired by ABB and here I am.
Okay. Yeah.
Yeah.
Also, the past few years, I traveled
really all around the worldfor both pleasure and work.
And when I was in Italy with a ABBand now, Hitachi Energy, I used to travel
quite often to South America,staying there several weeks.
And on one of these trips,I actually met my wife.
(02:10):
Oh, lovely. Yeah.
Yeah. It's a nice story.
Well, thank you for sharing.
So, you are now responsible for the NorthAmerican market.
You're based in Raleighat the moment in the US, right?
So to start us off,
could you paint a picturefor our listeners
as to what the North American marketis doing in terms of energy?
Sure. Sure.
I mean, in North America,
especially in the US,we are seeing a surge of energy demand.
(02:32):
I would say most of that is now drivenby data center consumption.
And the data centers is a landscapethat is evolving very quickly.
So what I mean is if we take a regulardata center, let's call it regular,
we are considering around 100
to 200MW of power that they need.
(02:54):
And it's already a huge amount.
Now with artificial intelligencewith the A.I.
the computational power neededis around 6 to 7 times more.
So these data centers are becoming,I would say pretty big monster
in terms of power consumptionbetween 1 and 2GW.
So that is equivalent of big scalenuclear power plant
(03:15):
that would be neededjust to feed these data centers.
This is the main driverthat we are seeing right now.
However,we also have a lot of aging grid in the US
where is being currently expanded.
Also because of renewable powerssuch as onshore wind, photovoltaic farms.
(03:36):
So the solar farms have changeda little bit the landscape of generation.
While with conventional generationwe usually have the power plant
close to the load.
So let's say the energy should have beentransmitted relatively
for not so long distance.
While usually the solar farmsand the wind farm are located
(03:57):
in remote areas where there basicallythere are no consumptions or no load,
but they need to be transported acrossthe country or across several states,
let's say, from then there is the needfor more power transmission lines.
Right, so this vast power grid,
what efforts are being madeto make it more sustainable?
Right.
We are seeing in the US a huge interestin terms of decarbonization, overall.
(04:19):
There are at the moment certain entities,mostly state
entities, not federal yet, I would say,that are taking some strong action
regarding the decarbonization of the grid.
And in particular, there are two bodies;one is in California,
it's called the California AirResources Board, CARB to make it simple;
(04:43):
and the other one is the NYSDEC,
that is the New York– StateDepartment of Environmental Conservation.
Thank you verymuch. Thank you, Bárbara. And
CARB at the moment has issued already
a regulationthat is phasing out the SF6 gas.
And the SF6 is what we usein our circuit breaker usually,
(05:05):
the New York regulation is more or lessbased on the CARB regulation,
but at the moment is still a proposal,right.
We are expecting to be converted into lawprobably
this year,but at the moment it's not effective yet.
On the contrary,the CARB is already in effect since 1st
January of this year,so this is already in place.
(05:26):
There's been discussions focusing on newtransmission lines at very high voltage.
So up to 800 kV.
Can you tell our listenersa little bit more about what's being done?
Yes. So I mean compared to Europe,for example,
where we have multitude of statespretty well interconnected among them.
Okay.
So the overall highvoltage network is relatively
(05:47):
well meshed and well interconnectedfrom country to country.
In my case, for example, I'm in Italyand in Italy we need to import
a lot of the energy, right.
So we are very well interconnectedwith France, with Austria and so on.
Right.
in the case of US, the network
is a little bit more working in islands.
(06:07):
Okay.
So there are severalwhat are called TSOs or ISOs.
So Transmission System Operatoror Independent System Operator.
And for the two driversthat I was mentioning before: so,
on the generation side more renewablesto be connected into the grid;
and then on the consumptionside, more data centers
(06:30):
that will need to get in this powerquickly and efficiently.
Many of these TSOs are starting –and one of them already approved it
actually – are starting the discussionof increasing
the voltage transmission level to 765 kV,
so 800 kV, and this will allow to have
(06:53):
a lot more power flowing with less lossesbasically.
So we have a huge amountof gigawatts flowing in.
And if you keep the highest voltagelevel, like current,
there is in 345 or 550according to the region.
In the US, this will increase a lot
(07:14):
the short circuit capacityand even the nominal current needed.
So bigger equipment and in generala higher cost of the grid.
So in this case they are evaluatingof course, the 800 kV
and in some cases they already adoptedHVDC system for example, so...
So, Stefano,the US has been at the forefront of trying
(07:36):
out, of piloting new technologyand we've experienced this as a company.
Can you tell us a little bitabout the world's first pilot
for EconiQ, which is our SF6-freeswitchgear portfolio?
Correct.
So in the US we are very proudbecause we are collaborating
and partner with one of our main customersthat is Eversource.
They’re located in New England.
(07:56):
And in the beginning of 2023,
we handed over the first of its kind,
the EconiQ Dead Tank Breaker - 420 kV,
that will be used on a 345 kV network
and currently has been already installed,
is of course fully tested and is workingabsolutely properly.
Eversource is considering their energytransition goals very, very highly.
(08:22):
We know that this is first of its kind.
They are, of course,trying to repeat as much as possible
this project and we hope,of course, to see something more.
We are actually working with themalso on new GIS also with SF6-free,
but on a lower transmission levelfor the moment.
On 500 kV voltage level,we had several references
(08:47):
and many customer that are early adoptersof this technology.
And in Hitachi Energy, we are prettyconfident that this technology will be
expanded overall on the full portfolio.
So we are very confidentbecause it is pretty safe, reliable,
scalable,and the footprint is essentially the same.
(09:07):
So, Stefano,you mentioned that the US specifically
is looking into increasing the gridor updating it to include
800 kVto cover larger distances with less loss.
And I know that in the EconiQ roadmap,there is the 800
kV circuit breaker will be released
shortly. Shortly,is that fair to say? Next year ?
I can't remember, I need to check,but I know it is on there.
(09:28):
I'm sure it'll be delivered on timeas usual. As usual.
So do you think the US, considering it'sbeen a very early adopter
of the other technology
we've just discussed,do you think it's likely
they will be the first ones to bringin– I really hope so.
I'm pretty positive about it.
We have already engaged since few monthswith our customers,
especially on the 800 kV projects.
(09:48):
And we have introducedalso the EconiQ portfolio on 800 kV.
It will be actually the most criticalvoltage network in the country.
We are pretty confident that customerslooking at the previous project
that we have done on 550 and 362,they will be pretty much convinced
of the goodnessand the robustness of the technology.
(10:09):
So essentially, Bárbara, yes–Because it Is proven now, right?
There is one in operation.
It's working as it should. Correct.
Then I would say the stepbetween the 550 and the 800
is pretty short as a technological stepas far as I understood.
And I really hope
that the US would be once againthe early adopter of this new product.
And so looking ahead,
what do you think the trends will be overthe next ten years, let's say?
(10:32):
It's a good question.
And considering the momentumthat was created by,
renewable energy data centers,we don't think also that,
you know, with the new administration,there would be a real stop
on the energy transition eventually.
We just understood that,
the new administrationwill invest a lot in data centers.
(10:54):
So that means, again, that the need ofpower, it will increase once more.
And we do know that we cannot go backonly to fossil fuel.
So still the renewables are an effective
and even probably most costeffective solution.
But they cannot be the only one.
So what we have seen isthere is start of the adoption
(11:17):
of what is called small modular reactors.
So it's still once again,nuclear power plants that are CO2 zero.
So there is no CO2 emission.
And they are deployed in a much faster
and safer waythan building up a new nuclear plant.
This one will be most probably overthe next ten years.
(11:40):
Also an additional, technologyon the generation side
besides, of course, the renewablesand some of the conventional for sure.
And this additional capacity created bythe same, are for sure, will be supporting
the AI data centerimplementation over the country.
you mentioned regulatory bodiessuch as CARB os NYSDEC,
(12:04):
how are they influencingthe SF6-free transition in real terms?
Are they setting deadlinesand are those going to be implemented?
Yes. At the moment, the one that isalready in place is the one on California.
So the CARBwhere as 1st of January of this year.
In California only?
In California only. Correct.
So these are state regulatory bodies.
(12:25):
At the momentthere is nothing on federal level
that is disciplining the SF6 phase out.
There is obligation to report
SF6 However, there is not such an advanced
legislation like in California– So reportbut not phase it out.
That is correct.
So there is not such an advancedregulation, such as in California or
(12:47):
at the moment,the proposed one in New York, that
we hope to be implemented very soon,at least this year.
What we are foreseeing and,
we don't have the certainty, of course,but it seems to be
the trend is that there will be overthe next ten years,
for sure, a sort of domino effectat least on the state level.
On the federal level, at the moment,we don't see any movement,
(13:08):
but we are expectingthat other states will take
inspiration,let's say, from California, New York.
And the most important thingis that in our case,
we are showing the marketthat there is valid
and reliable technologyto implement this transition.
We mentioned earlier the California AirResources Board and the New York State
(13:30):
Department of Environmental Conservationare actively trying to phase out SF6 Yeah.
It's not mandated yet,so at least not across the US.
But companiesare adopting this technology.
Are they doing so because it's part oftheir own company’s sustainability goals?
Is it because they want to bea good corporate citizen?
What do you thinkis making these companies invest
in a betterand more sustainable energy future?
(13:51):
Regarding our customers,the majority of utilities that are serving
the US customer are what is calledthe IOUs – Investor Owned Utilities.
They cover around 72% of US customers,as the name say
they are listedin the New York Stock Exchange.
Many of them, they do have very strong ESG
(14:14):
policies that they want to implementas part of their strategy.
And particularly the ‘S,’or the sustainability part
is where they are looking afterfor their operation.
Right.
And we know that SF6 circuit breakerare a huge part of their daily operation.
And more than a couple of years,we are supporting them in this transition
(14:34):
because we know it's very difficult toto switch over a new technology
all of a sudden.
It is a path that we are doing together.
We are demonstrating more and morethat we do have in the portfolio
a reliable and robust technology.
We are pretty confidentthat over the next year,
this customer will enablewhatever is in their goals
(14:58):
for sustainability
through change in technology,also in their substation equipment.
We are againvery optimistic and positive about
what is the future ahead of us.
The grid is expanding rapidly.
Your customers are also investingin a sustainable future.
How is Hitachi Energy responding?
(15:18):
What are you doing as a companyto make sure you can meet this demand?
It's a very interesting point, Bárbara,
because, what we are seeing nowover the last one and a half year,
a couple of years is a booming demandin general for our equipment.
- so, switchgear - with EconiQ,we could cover interesting portion of it.
So we were,absolutely a valid alternative.
(15:40):
And this also increased the adoptionof the the EconiQ portfolio into the US.
But in general, the demandcoming from all our customers,
different segments such as utilities,like we were saying before,
but also what is non-utility,the data centers, for example, industries
and renewables, if we want to considerthem as a non-utility, was amazing.
(16:05):
Amazing means that, our numbers
more than quadrupledcompared to the last couple of years.
If it's a good thing for the manufacturer,for Hitachi Energy and for the others,
is less of a good thing for the customers,because there is
what we could say, a supply crunch.
When an equipmentsuch as power transformers or nowadays,
(16:29):
dead tank breaker in the US was taking
few months for delivery,now we are going up to 4 years.
This is somethingwhere Hitachi Energy understood
and decided to invest in North America.
With the new expansion planned,we will be investing overall
starting from 2021, around 100– 2020?
(16:51):
Starting from 2021.
Oh, we started.
Got it. Yes. Correct.
We did several improvementsand now we have announced in October
the biggest investment for high voltagein North America.
The cumulative amount investedon our own facilities
since 2021 will be around $100 million.
So it is pretty impressive.
(17:12):
And the goal is to support our customersto meet their demand
and to re-normalize a bit, the lead times.
At the moment,the focus for sure is on the breakers.
So our factory in Mount Pleasant,Pennsylvania.
However,we are expecting also that the rest
(17:33):
of the high voltage equipment,so the instrument transformers,
the surge arresters, the capacitor banks,
the disconnectors that are usuallyalso going into a substation, right
– so whenever you need a circuit breaker,you will need one of this equipment
- will also eventually be in high demandsimply because,
(17:54):
at the moment we are seeing that leadtimes are increasing over there as well.
And for this reason we are actuallyopening a new facility just dedicated–
So you’re preempting the need to make surethat the long lead doesn't happen again.
That's correct.So we are getting prepared.
We are proactively approaching the marketwith further investment,
(18:14):
further efficiency and more capacityto support the foreseen growth.
We hope that this one could help us
to give us a strong positionin front of our customers.
They do appreciate the factthat we are doing these investments
and, most importantly,they appreciate that we are,
improving and increasingthe amount of investment in sustainability
(18:38):
because in the new expansion of MountPleasant factory,
we will have a new gas management systemthat will allow us to increase
the capacity also, for EconiQ breakersthat we are building there.
It will be– Great strides.
Yeah.
Yeah, would be a very nice experience,I would say.
All right.
Thank you very much for coming in StefanoThank you.
It's been wonderful chatting with you.
(18:59):
Thanks a lot, Barbara.Thank you very much.
And that's it for today.
We'll be backseen with some more great content.
But before you go,remember to give us a follow
so you don't miss an episode.
Thanks for tuning in. See you soon.
This episode was brought to you by HitachiEnergy.
Created and hosted by BarbaraFreitas, Daniels.
Content and script writing by CassandraInay and Ivy Samuel.
Guest speaker (19:20):
Stefano Cervidi.
Studio supportby Giovanni Perrone and Natalia Arbatska.
Produced and edited by Creative Chimps.
High voltage takes center stagein this season of Hitachi
Energy's Power Pulse podcast.
We promise to bring you great contentfrom the brightest minds in the business.
We'll discuss challenges, opportunities,and all the hot topics
any high voltage enthusiast
or anyone interested in sustainability,for that matter, is sure to enjoy.
In this episode, we'reputting the spotlight on North America,
(00:21):
a powerhouse regionin the global energy transition.
The region's energy landscapeis making significant contributions
in the decarbonization journey.
Here are just a couple of literal powermoves happening in the region.
In the US, there are massivewind farms in Texas, growing solar power
generation in California, and stateslike New York
are taking a huge leap in offshorewind farm developments.
(00:42):
While up north, Canada is making its markwith hydroelectric projects
while growing wind and solar capacityto meet ambitious climate goals.
To guide us through all of this,I am joined by Stefano Cervidi,
Market Managerfor High Voltage at Hitachi Energy.
He will walk us through the innovations,challenges and opportunities
that are defining the NorthAmerican landscape.
Sit back, relaxand listen to this insightful episode.
(01:04):
Hi, Stefano.
Welcome to the Power Pulse podcast.How are you? Good.
Thank you very much, Bárbara.Thank you for having me here.
Thanks for coming in.
So we always start each podcast episodeby asking our guests
to tell us a little bit about themselves.
I knowthat you've had quite a varied career,
and you've lived inquite a few interesting places.
Yeah,I mean, when I was in the university,
I had one year Erasmus exchange in Spain.
(01:26):
Then as soon as I finished my master'sdegree, I went to London actually.
London? Well, yeah.
Whereabouts were you?
It was six months and it was an eastern
part of London, Walthamstow E17. E17.
I think there was also a boy bandcalled this, right?
There was, yeah. Everyone knows E17.
Everyone, our generation at least. Yeah.
And then I moved to France, to Paris,to start working there.
(01:49):
And then I got hired by ABB and here I am.
Okay. Yeah.
Yeah.
Also, the past few years, I traveled
really all around the worldfor both pleasure and work.
And when I was in Italy with a ABBand now, Hitachi Energy, I used to travel
quite often to South America,staying there several weeks.
And on one of these trips,I actually met my wife.
(02:10):
Oh, lovely. Yeah.
Yeah. It's a nice story.
Well, thank you for sharing.
So, you are now responsible for the NorthAmerican market.
You're based in Raleighat the moment in the US, right?
So to start us off,
could you paint a picturefor our listeners
as to what the North American marketis doing in terms of energy?
Sure. Sure.
I mean, in North America,
especially in the US,we are seeing a surge of energy demand.
(02:32):
I would say most of that is now drivenby data center consumption.
And the data centers is a landscapethat is evolving very quickly.
So what I mean is if we take a regulardata center, let's call it regular,
we are considering around 100
to 200MW of power that they need.
(02:54):
And it's already a huge amount.
Now with artificial intelligencewith the A.I.
the computational power neededis around 6 to 7 times more.
So these data centers are becoming,I would say pretty big monster
in terms of power consumptionbetween 1 and 2GW.
So that is equivalent of big scalenuclear power plant
(03:15):
that would be neededjust to feed these data centers.
This is the main driverthat we are seeing right now.
However,we also have a lot of aging grid in the US
where is being currently expanded.
Also because of renewable powerssuch as onshore wind, photovoltaic farms.
(03:36):
So the solar farms have changeda little bit the landscape of generation.
While with conventional generationwe usually have the power plant
close to the load.
So let's say the energy should have beentransmitted relatively
for not so long distance.
While usually the solar farmsand the wind farm are located
(03:57):
in remote areas where there basicallythere are no consumptions or no load,
but they need to be transported acrossthe country or across several states,
let's say, from then there is the needfor more power transmission lines.
Right, so this vast power grid,
what efforts are being madeto make it more sustainable?
Right.
We are seeing in the US a huge interestin terms of decarbonization, overall.
(04:19):
There are at the moment certain entities,mostly state
entities, not federal yet, I would say,that are taking some strong action
regarding the decarbonization of the grid.
And in particular, there are two bodies;one is in California,
it's called the California AirResources Board, CARB to make it simple;
(04:43):
and the other one is the NYSDEC,
that is the New York– StateDepartment of Environmental Conservation.
Thank you verymuch. Thank you, Bárbara. And
CARB at the moment has issued already
a regulationthat is phasing out the SF6 gas.
And the SF6 is what we usein our circuit breaker usually,
(05:05):
the New York regulation is more or lessbased on the CARB regulation,
but at the moment is still a proposal,right.
We are expecting to be converted into lawprobably
this year,but at the moment it's not effective yet.
On the contrary,the CARB is already in effect since 1st
January of this year,so this is already in place.
(05:26):
There's been discussions focusing on newtransmission lines at very high voltage.
So up to 800 kV.
Can you tell our listenersa little bit more about what's being done?
Yes. So I mean compared to Europe,for example,
where we have multitude of statespretty well interconnected among them.
Okay.
So the overall highvoltage network is relatively
(05:47):
well meshed and well interconnectedfrom country to country.
In my case, for example, I'm in Italyand in Italy we need to import
a lot of the energy, right.
So we are very well interconnectedwith France, with Austria and so on.
Right.
in the case of US, the network
is a little bit more working in islands.
(06:07):
Okay.
So there are severalwhat are called TSOs or ISOs.
So Transmission System Operatoror Independent System Operator.
And for the two driversthat I was mentioning before: so,
on the generation side more renewablesto be connected into the grid;
and then on the consumptionside, more data centers
(06:30):
that will need to get in this powerquickly and efficiently.
Many of these TSOs are starting –and one of them already approved it
actually – are starting the discussionof increasing
the voltage transmission level to 765 kV,
so 800 kV, and this will allow to have
(06:53):
a lot more power flowing with less lossesbasically.
So we have a huge amountof gigawatts flowing in.
And if you keep the highest voltagelevel, like current,
there is in 345 or 550according to the region.
In the US, this will increase a lot
(07:14):
the short circuit capacityand even the nominal current needed.
So bigger equipment and in generala higher cost of the grid.
So in this case they are evaluatingof course, the 800 kV
and in some cases they already adoptedHVDC system for example, so...
So, Stefano,the US has been at the forefront of trying
(07:36):
out, of piloting new technologyand we've experienced this as a company.
Can you tell us a little bitabout the world's first pilot
for EconiQ, which is our SF6-freeswitchgear portfolio?
Correct.
So in the US we are very proudbecause we are collaborating
and partner with one of our main customersthat is Eversource.
They’re located in New England.
(07:56):
And in the beginning of 2023,
we handed over the first of its kind,
the EconiQ Dead Tank Breaker - 420 kV,
that will be used on a 345 kV network
and currently has been already installed,
is of course fully tested and is workingabsolutely properly.
Eversource is considering their energytransition goals very, very highly.
(08:22):
We know that this is first of its kind.
They are, of course,trying to repeat as much as possible
this project and we hope,of course, to see something more.
We are actually working with themalso on new GIS also with SF6-free,
but on a lower transmission levelfor the moment.
On 500 kV voltage level,we had several references
(08:47):
and many customer that are early adoptersof this technology.
And in Hitachi Energy, we are prettyconfident that this technology will be
expanded overall on the full portfolio.
So we are very confidentbecause it is pretty safe, reliable,
scalable,and the footprint is essentially the same.
(09:07):
So, Stefano,you mentioned that the US specifically
is looking into increasing the gridor updating it to include
800 kVto cover larger distances with less loss.
And I know that in the EconiQ roadmap,there is the 800
kV circuit breaker will be released
shortly. Shortly,is that fair to say? Next year ?
I can't remember, I need to check,but I know it is on there.
(09:28):
I'm sure it'll be delivered on timeas usual. As usual.
So do you think the US, considering it'sbeen a very early adopter
of the other technology
we've just discussed,do you think it's likely
they will be the first ones to bringin– I really hope so.
I'm pretty positive about it.
We have already engaged since few monthswith our customers,
especially on the 800 kV projects.
(09:48):
And we have introducedalso the EconiQ portfolio on 800 kV.
It will be actually the most criticalvoltage network in the country.
We are pretty confident that customerslooking at the previous project
that we have done on 550 and 362,they will be pretty much convinced
of the goodnessand the robustness of the technology.
(10:09):
So essentially, Bárbara, yes–Because it Is proven now, right?
There is one in operation.
It's working as it should. Correct.
Then I would say the stepbetween the 550 and the 800
is pretty short as a technological stepas far as I understood.
And I really hope
that the US would be once againthe early adopter of this new product.
And so looking ahead,
what do you think the trends will be overthe next ten years, let's say?
(10:32):
It's a good question.
And considering the momentumthat was created by,
renewable energy data centers,we don't think also that,
you know, with the new administration,there would be a real stop
on the energy transition eventually.
We just understood that,
the new administrationwill invest a lot in data centers.
(10:54):
So that means, again, that the need ofpower, it will increase once more.
And we do know that we cannot go backonly to fossil fuel.
So still the renewables are an effective
and even probably most costeffective solution.
But they cannot be the only one.
So what we have seen isthere is start of the adoption
(11:17):
of what is called small modular reactors.
So it's still once again,nuclear power plants that are CO2 zero.
So there is no CO2 emission.
And they are deployed in a much faster
and safer waythan building up a new nuclear plant.
This one will be most probably overthe next ten years.
(11:40):
Also an additional, technologyon the generation side
besides, of course, the renewablesand some of the conventional for sure.
And this additional capacity created bythe same, are for sure, will be supporting
the AI data centerimplementation over the country.
you mentioned regulatory bodiessuch as CARB os NYSDEC,
(12:04):
how are they influencingthe SF6-free transition in real terms?
Are they setting deadlinesand are those going to be implemented?
Yes. At the moment, the one that isalready in place is the one on California.
So the CARBwhere as 1st of January of this year.
In California only?
In California only. Correct.
So these are state regulatory bodies.
(12:25):
At the momentthere is nothing on federal level
that is disciplining the SF6 phase out.
There is obligation to report
SF6 However, there is not such an advanced
legislation like in California– So reportbut not phase it out.
That is correct.
So there is not such an advancedregulation, such as in California or
(12:47):
at the moment,the proposed one in New York, that
we hope to be implemented very soon,at least this year.
What we are foreseeing and,
we don't have the certainty, of course,but it seems to be
the trend is that there will be overthe next ten years,
for sure, a sort of domino effectat least on the state level.
On the federal level, at the moment,we don't see any movement,
(13:08):
but we are expectingthat other states will take
inspiration,let's say, from California, New York.
And the most important thingis that in our case,
we are showing the marketthat there is valid
and reliable technologyto implement this transition.
We mentioned earlier the California AirResources Board and the New York State
(13:30):
Department of Environmental Conservationare actively trying to phase out SF6 Yeah.
It's not mandated yet,so at least not across the US.
But companiesare adopting this technology.
Are they doing so because it's part oftheir own company’s sustainability goals?
Is it because they want to bea good corporate citizen?
What do you thinkis making these companies invest
in a betterand more sustainable energy future?
(13:51):
Regarding our customers,the majority of utilities that are serving
the US customer are what is calledthe IOUs – Investor Owned Utilities.
They cover around 72% of US customers,as the name say
they are listedin the New York Stock Exchange.
Many of them, they do have very strong ESG
(14:14):
policies that they want to implementas part of their strategy.
And particularly the ‘S,’or the sustainability part
is where they are looking afterfor their operation.
Right.
And we know that SF6 circuit breakerare a huge part of their daily operation.
And more than a couple of years,we are supporting them in this transition
(14:34):
because we know it's very difficult toto switch over a new technology
all of a sudden.
It is a path that we are doing together.
We are demonstrating more and morethat we do have in the portfolio
a reliable and robust technology.
We are pretty confidentthat over the next year,
this customer will enablewhatever is in their goals
(14:58):
for sustainability
through change in technology,also in their substation equipment.
We are againvery optimistic and positive about
what is the future ahead of us.
The grid is expanding rapidly.
Your customers are also investingin a sustainable future.
How is Hitachi Energy responding?
(15:18):
What are you doing as a companyto make sure you can meet this demand?
It's a very interesting point, Bárbara,
because, what we are seeing nowover the last one and a half year,
a couple of years is a booming demandin general for our equipment.
- so, switchgear - with EconiQ,we could cover interesting portion of it.
So we were,absolutely a valid alternative.
(15:40):
And this also increased the adoptionof the the EconiQ portfolio into the US.
But in general, the demandcoming from all our customers,
different segments such as utilities,like we were saying before,
but also what is non-utility,the data centers, for example, industries
and renewables, if we want to considerthem as a non-utility, was amazing.
(16:05):
Amazing means that, our numbers
more than quadrupledcompared to the last couple of years.
If it's a good thing for the manufacturer,for Hitachi Energy and for the others,
is less of a good thing for the customers,because there is
what we could say, a supply crunch.
When an equipmentsuch as power transformers or nowadays,
(16:29):
dead tank breaker in the US was taking
few months for delivery,now we are going up to 4 years.
This is somethingwhere Hitachi Energy understood
and decided to invest in North America.
With the new expansion planned,we will be investing overall
starting from 2021, around 100– 2020?
(16:51):
Starting from 2021.
Oh, we started.
Got it. Yes. Correct.
We did several improvementsand now we have announced in October
the biggest investment for high voltagein North America.
The cumulative amount investedon our own facilities
since 2021 will be around $100 million.
So it is pretty impressive.
(17:12):
And the goal is to support our customersto meet their demand
and to re-normalize a bit, the lead times.
At the moment,the focus for sure is on the breakers.
So our factory in Mount Pleasant,Pennsylvania.
However,we are expecting also that the rest
(17:33):
of the high voltage equipment,so the instrument transformers,
the surge arresters, the capacitor banks,
the disconnectors that are usuallyalso going into a substation, right
– so whenever you need a circuit breaker,you will need one of this equipment
- will also eventually be in high demandsimply because,
(17:54):
at the moment we are seeing that leadtimes are increasing over there as well.
And for this reason we are actuallyopening a new facility just dedicated–
So you’re preempting the need to make surethat the long lead doesn't happen again.
That's correct.So we are getting prepared.
We are proactively approaching the marketwith further investment,
(18:14):
further efficiency and more capacityto support the foreseen growth.
We hope that this one could help us
to give us a strong positionin front of our customers.
They do appreciate the factthat we are doing these investments
and, most importantly,they appreciate that we are,
improving and increasingthe amount of investment in sustainability
(18:38):
because in the new expansion of MountPleasant factory,
we will have a new gas management systemthat will allow us to increase
the capacity also, for EconiQ breakersthat we are building there.
It will be– Great strides.
Yeah.
Yeah, would be a very nice experience,I would say.
All right.
Thank you very much for coming in StefanoThank you.
It's been wonderful chatting with you.
(18:59):
Thanks a lot, Barbara.Thank you very much.
And that's it for today.
We'll be backseen with some more great content.
But before you go,remember to give us a follow
so you don't miss an episode.
Thanks for tuning in. See you soon.
This episode was brought to you by HitachiEnergy.
Created and hosted by BarbaraFreitas, Daniels.
Content and script writing by CassandraInay and Ivy Samuel.
Guest speaker (19:20):
Stefano Cervidi.
Studio supportby Giovanni Perrone and Natalia Arbatska.
Produced and edited by Creative Chimps.
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!