Supply Contract for Ultra-High Voltage Transformers Signed with Scottish Power Company
Expansion into the UK, Sweden, and More... Accelerating European Market Entry
European Orders Surpassed $400 Million Last Year... 44% Annual Growth
HD Hyundai Electric is accelerating its entry into the European market by securing its first order in the Scottish market.
On the 23rd, HD Hyundai Electric announced that it had signed a supply contract with Scotland's power company, SP Energy Networks, for four 400-kilovolt (kV) ultra-high voltage transformers. The contract signing ceremony was held on the 22nd (local time) at the headquarters of SP Energy Networks, with key figures in attendance, including Jo Seok, Vice Chairman of HD Hyundai Electric, and Eddie Mulholland, Chief Technology Officer of SP Energy Networks.
On the 22nd (local time), at the contract signing ceremony held at the headquarters of ESP Energy Networks in Scotland, Jo Seok, Vice Chairman of HD Hyundai Electric, and Eddie Mulholland, Chief Technology Officer of ESP Energy Networks, posed for a commemorative photo after signing a supply contract for four 400-kilovolt (kV) ultra-high voltage transformers. HD Hyundai Electric
The transformers that HD Hyundai Electric has secured in this order are scheduled to be used for the expansion of substations to ensure a stable power supply in the south-central region of Scotland. The final delivery of the products is set for the second half of 2028.
According to the European Union (EU) Commission, 40% of the European power grid consists of facilities that are more than 40 years old. In addition, Europe is rapidly increasing the share of renewable energy generation, such as solar and wind power, with the goal of achieving net zero (carbon neutrality) by 2050. This has further highlighted the need to strengthen the power grid to support these changes.
In fact, the EU Commission has estimated that up to $2.3 trillion will be required to expand the European power grid by 2050. According to a report released last year by the International Energy Agency (IEA), investment in the European power grid reached 80 billion euros (approximately $90 billion), and has been increasing annually since 2018. With the recent large-scale blackouts in countries such as Spain and Portugal, the need for investment is expected to grow further due to additional demand for power grid restoration.
HD Hyundai Electric is developing Europe, along with North America, the Middle East, and South Korea, as one of its "four core export markets." Last year, the company's annual order volume in Europe reached $437.75 million, recording an average annual growth rate of 44% since 2020.
A representative from HD Hyundai Electric stated, "Europe is a high value-added market characterized by a conservative nature and high technological entry barriers, where orders are secured based on quality and technological capability. We plan to expand our influence in the European market by strengthening our research and development capabilities and enhancing our network with customers."
Meanwhile, last year, HD Hyundai Electric signed a contract to supply ultra-high voltage transformers worth approximately 66.2 billion KRW with a power company based in Sweden. In addition, the company is continuously implementing strategies to broaden its presence in the European market by diversifying into countries such as the United Kingdom, France, and Denmark.
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