Supply Contract for Extra High Voltage Transformers and Reactors
Used for Building Long-Distance Transmission Grids
Growing Demand from AI Industry and Data Centers
HD Hyundai Electric is accelerating its efforts to penetrate the North American extra high voltage transmission grid market by securing a large-scale order for extra high voltage transformers in the United States.
On September 22, HD Hyundai Electric announced that it had signed a supply contract with the largest power company in Texas, United States, for a total of 24 units of 765kV extra high voltage transformers and reactors, worth approximately 277.8 billion won. This contract marks the largest single order in the company's history, with the equipment scheduled for delivery in 2029.
The 765kV extra high voltage transformer is the highest voltage specification in the United States and is used for constructing long-distance transmission grids. Compared to 345kV transformers, the 765kV model enables transmission at higher voltages, which reduces power loss and construction costs, while increasing transmission capacity by up to five times.
The United States, with its vast territory and renewable power plants such as wind and solar located far from demand centers, requires stable long-distance transmission grids. Approximately 70% of the U.S. power grid consists of aging facilities built in the 1960s, leading to a surge in replacement demand. In addition, the expansion of the artificial intelligence (AI) industry, the increase in data centers, and the trend toward greater use of renewable energy are all driving up demand for 765kV extra high voltage transformers.
Since supplying a 765kV extra high voltage transformer to the Shinsesan Substation in 1999, HD Hyundai Electric has delivered more than 160 units to major domestic power plants such as Dangjin Thermal Power Plant and Shin-Kori Nuclear Power Plant, as well as to overseas markets including the United States and India. In particular, the planned expansion of its Alabama plant in the United States in 2027 will increase production capacity for 765kV transformers, enabling the company to respond proactively to local demand in North America.
A representative from HD Hyundai Electric stated, "Because 765kV transformers require advanced technology, only a handful of companies worldwide are capable of producing them. Through this order, we will further solidify our position in the North American extra high voltage transmission grid market and strive to secure additional orders."
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