Meed | Hitachi Energy rides HVDC boom

Hitachi Energy rides HVDC boom

12 November 2024

The GCC region’s strong drive to decarbonise electricity generation, distribution and consumption has led to an increased demand for renewable energy and electric mobility, which in turn require strong, secure and reliable grids.

“The key issue [among stakeholders] is how to stabilise the grid and maintain its resilience to ensure safety and security of supply,” Bruno Melles, global managing director for the Transformers Business Unit at Zurich-headquartered Hitachi Energy, tells MEED.

Options to address this issue include offshore and onshore interconnections, particularly through high-voltage direct current (HVDC) networks, as well as the deployment of battery energy storage systems.

HVDCs are broadly considered more environment-friendly compared to their alternating current predecessors by allowing electricity transmission over long distances with minimal losses.

Several HVDC networks are under construction across the GCC states. The region’s first subsea power transmission network in Abu Dhabi replaces existing offshore gas turbine generators catering to Adnoc’s offshore operations with more sustainable power sources available in Abu Dhabi’s onshore power network.

The Saudi-Egypt interconnection is also underway. Once completed, it will enable the daily exchange of up to 3,000MW of electricity, opening up potential energy trade between the GCC and other countries in the Gulf, Africa and Europe.

Saudi Arabia also recently awarded a $5.3bn contract to interconnect its western, central and southern regions through an on-land HVDC network.

In addition, in May this year, Hitachi Energy signed agreements with Enowa, the utility arm of Saudi gigaproject developer Neom, to supply three HVDC transmission systems with a total capacity to transmit up to 9,000MW of electricity.

Discussions are under way for more of these types of projects, notes Melles, who says these projects reflect the need to integrate and secure the grid, particularly as more countries consider cross-border links and connecting their existing grids to remote renewable energy plants.

As interconnection investments grow, the need for digitalisation will also grow as utilities and transmission system operators seek more precise ways to manage their electrical loads and avoid waste.

Large users

The presence of industries with high power demands such as refining has been a distinguishing feature of most GCC states' power systems.

Most recently, the drive to deploy AI-based applications has spurred a boom in data centre construction particularly in the UAE and Saudi Arabia.

“We’re seeing plans to build data centres with load capacities of up to 1,000MW,” explains Melles, who points out that these facilities are fast becoming a major power utilisation point similar to other large industries.

The International Energy Agency estimates that data centres represent roughly 2% of global power consumption in 2022 and this is expected to more than double to 5% to 6%, according to various projections.

An increase in the large power user base, even as electrification increases, reinforces the need for more resilient grids that can deal with varying loads and distances and energy sources, according to Melles.

Meeting demand

Globally, transmission and distribution infrastructure buildout is expected to catch up with prolific investments to expand generation capacity as power and decarbonisation demands increase.

Across the GCC, an estimated 49,000MW of conventional and renewable energy power generation plants are under construction as of October this year. The project pipeline remains robust, with key jurisdictions such as Saudi Arabia and Abu Dhabi aiming for renewable sources to meet up to 50% of their electricity demand by the end of the decade.

The GCC region’s power transmission and distribution sector is also set to experience its best year in terms of the value of awarded contracts.

According to data from regional projects-tracking service MEED Projects, the total value of awarded contracts for substations, control centres, overhead lines and cables across the six GCC states reached an estimated $13.8bn between January and September 2024.

This figure already exceeds by 81% the total value of contracts awarded in the preceding full year.

To meet demand, Hitachi Energy, which supplies solutions ranging from large transformers, communication networks, cooling systems and cybersecurity to cable accessories, recently launched a $1.5bn programme to boost its transformer production capacity between 2024 and 2027.

“We need to scale up capacity and availability, and we are committing with our parts suppliers… to be able to supply [transformers] to the industry,” explains Melles.

Hitachi Energy is also, more crucially, investing in human resources as it expands its production capacity and presence globally. "We are investing in people across all skill levels in our company not just in our factories… because we believe resource constraints will be more serious than steel or copper constraints."

The executive notes that in addition to driving power demand, AI is a key development that suppliers like Hitachi Energy are following closely due to its potential to transform industries over time.

Current AI applications enable predictive maintenance and reliability, where they can analyse data from sensors and maintenance records to predict when equipment may fail.

The next stage, which Melles expects will cause widespread disruption, is when AI is applied to industrial process and engineering optimisation, which experts say may lead to increased efficiency, reduced resources and improved product quality, among others.

“AI offers a great opportunity if used properly,” the executive concludes.

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Jennifer Aguinaldo

Exclusive from Meed

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22 September 2026
Oman tenders Thumrait Industrial City infrastructure
22 September 2026
Kuwait halves drilling contractor pool
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Abu Dhabi expects 45% emissions cut as electricity demand rises
21 September 2026

Jedco maps next phase of Jeddah airport expansion
22 September 2026

Jeddah Airports Company (Jedco) has outlined plans for the next phase of expansion at King Abdulaziz International airport (KAIA) in Jeddah.

The programme comprises six upcoming contractor packages spanning airside works, terminal upgrades and utilities as Jedco advances its long-term expansion plans.

The opportunities include airfield rehabilitation; a five-year construction framework covering multiple workstreams and facility types; a Terminal 3A (T3A) package; Terminal 1 (T1) optimisation; a fuel farm; and Concourse C works.

The packages cover terminal buildings and ancillary facilities, runways, taxiways and aprons, hangars, fuel systems, airside facilities, supporting infrastructure and utility networks.

Tendering and award activity will be staggered over the next two years. Airfield rehabilitation is targeted for Q3 2026. The construction framework is scheduled for Q4 2026 and will run for five years.

The T3A package is planned for Q1 2027 and will be delivered under an early contractor involvement contract. Local contractors are encouraged to bid as part of a joint venture with an experienced international partner.

T1 optimisation is planned for Q4 2027, the fuel farm for Q2 2027, and Concourse C – currently the latest of the six milestones – for Q2 2028.

The new packages add detail to Jedco’s wider expansion plans disclosed in 2023, when it was reported that the company would invest SR115bn ($31bn) to increase KAIA’s capacity to 114 million passengers a year, with an overall completion target of 2031.

Jedco has recently awarded several significant contracts linked to the airport’s upgrade programme.

In November 2024, a joint venture of local Algihaz Contracting and Turkey’s TAV was awarded a contract to rehabilitate the South Terminal to serve Umrah and Hajj pilgrims, with Singapore’s Surbana Jurong acting as consultant.

Earlier that year, Jedco also awarded France’s Alstom a contract to increase the capacity of the Innovia automated people mover at Terminal 1, including new cars and upgrades to signalling, communications and controls.

Surbana Jurong is expected to play a leading role in future KAIA expansion plans and is currently providing technical advisory and project management consultancy for more than 100 capital projects for Jedco, valued at over SR6bn ($1.6bn).

These upgrades are expected to boost KAIA’s annual capacity in line with Saudi Arabia’s Vision 2030 and National Aviation Strategy, enhancing the experience for domestic travellers and millions of Hajj and Umrah pilgrims.

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Yasir Iqbal

Contractor wins $105m Medina university hospital deal

22 September 2026

Riyadh-based construction firm Al-Mansouria General Contracting Company has been awarded a SR396m ($105.6m) contract to complete the remaining construction works on the Taiba University Hospital project in Medina.

The contract scope includes structural completion, remaining civil works, mechanical, electrical and plumbing installations, specialised clinical fit-outs and medical gas infrastructure to bring the long-stalled facility into operation.

Located on King Khalid Road along Medina’s Third Ring Road, the teaching hospital will have a capacity of 563 beds.

The contract duration is three years, with delivery targeted for late 2029.

The latest award follows a prolonged procurement cycle that began more than a decade ago as part of a public budget drive to expand Saudi Arabia’s higher education infrastructure.

The project’s first phase was initially signed in December 2011 with local firm Al-Muhaidib Contracting under a SR500m ($133.3m) contract.

Groundbreaking for the eight-storey complex took place in July 2013. The project covers a gross floor area of more than 200,000 square metres.

Progress stalled shortly thereafter due to reported structural delays and the reallocation of public capital budgets across the kingdom’s social infrastructure pipeline.

READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDF

Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:

> AGENDA: Gulf nuclear revival takes shape

> MARKET FOCUS: Kuwait keeps dealmaking alive under fire

> INDUSTRY REPORT: Gas processing takes centre stage in Mena region

> INTERVIEW: Emsteel persists with business productivity and efficiency

> TUNNELS: The Gulf’s next construction boom is happening underground

To see previous issues of MEED Business Review, please click here

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Yasir Iqbal

Oman tenders Thumrait Industrial City infrastructure
22 September 2026

Oman’s Public Establishment for Industrial Estates (Madayn) has tendered an estimated RO15m ($39m) contract to develop infrastructure for Thumrait Industrial City.

The tender was issued on 14 September, with bids due by 12 November.

The scope covers site-wide utilities and services, including an internal road network, stormwater channels and culverts. It also includes installing sewerage and water networks, along with landscaping works.

In addition, Madayn intends to build plug-and-play industrial units and a facilities building.

The first phase of the development will cover about 120,000 square metres (sq m).

Thumrait Industrial City is located in Oman’s Dhofar Governorate and spans an area of more than four million sq m.

The project location is close to concession blocks, quarry sites and the Najd agricultural areas. It is positioned to attract industrial investments in sectors such as mining and minerals processing (including gypsum and cement), food production, and a range of light and general manufacturing activities.

In March, Madayn said it is preparing to invest more than RO245m ($637m) to upgrade and expand infrastructure across its industrial cities between 2026 and 2030, as part of efforts to attract new investment and advance economic diversification.

According to media reports, Madayn chief executive Dawood Bin Salim Al-Hadabi said the programme is part of an expanded, phased plan aligned with Oman Vision 2040 and the authority’s long-term Madayn 2040 strategy.

The objective is to deepen Oman’s industrial base and spread growth across the sultanate’s governorates.

Madayn said the pipeline comprises about 90 strategic projects to improve industrial-city infrastructure, extend serviced land and increase the overall ease of doing business for investors.

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Yasir Iqbal
Kuwait halves drilling contractor pool
22 September 2026
State-owned upstream operator Kuwait Oil Company (KOC) has reduced the number of approved contractors for onshore drilling and shallow-well maintenance from 51 to 24.

Firms that are no longer qualified include major contractors such as Italy’s Saipem, Oklahoma-based Helmerich & Payne and Houston-based Patterson-UTI Energy.

The latest list still includes a wide range of Kuwaiti, regional and international companies, according to the latest update on its electronic system, published on 21 September 2026.

The full list of contractors that are now qualified to participate in tenders is:
- Burgan Company for Well Drilling, Trading & Maintenance (Kuwait)
- Kuwait Drilling Company (Kuwait)
- Sun Drilling Kuwait (Kuwait)
- TDL Kuwait for Oil Rigs & Natural Gas Extraction Activities, Services and Facilities (Kuwait)
- United Precision Drilling (Kuwait)
- Abraj Energy Services (Oman)
- Adnoc Drilling Company (UAE)
- Arabian Drilling Company (Saudi Arabia)
- Anton Oilfield Services (China)
- China Oilfield Services (China)
- Egyptian Drilling Company (Egypt)
- CNPC Bohai Drilling Engineering Company (China)
- Great Wall Drilling Company (China)
- John Energy (India)
- Kerui Oilfield Service (China)
- KCA Deutag Drilling (Germany)
- Mohammed Al-Barwani Petroleum Services (Oman)
- Nabors Drilling International (US)
- National Drilling & Services Company (Oman)
- Sea & Land Drilling Contractors (Oman)
- Sinopec International Petroleum Service Corporation (China)
- Karamay Jianye Energy (China)
- Modern Drilling Company (Egypt)
- Grey Wolf Drilling International (US)
An earlier list, which was published on 11 February, included 51 qualified companies.

The reduction in qualified drilling contractors follows KOC’s notice on 27 April this year, informing existing qualified contractors that they would need to reapply.
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Wil Crisp

Abu Dhabi expects 45% emissions cut as electricity demand rises

21 September 2026

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Abu Dhabi-based Emirates Water & Electricity Company (Ewec) expects carbon emissions from power and water production to fall by more than 45% by 2035 as the UAE expands renewable energy and reverse osmosis (RO) desalination.

The state offtaker's latest long-term system planning forecasts emissions will decline from about 42 million tonnes in 2019 to approximately 23 million tonnes in 2035.

The reduction is expected despite annual electricity demand that is forecast to rise by about 70% in 2026-33.

Ewec said the expansion of renewable energy and the shift towards RO desalination will be the principal drivers of the reduction.

The company plans to increase Abu Dhabi's solar capacity to 14GW by 2030 and more than 35GW by 2035. This will be supported by up to 15GW of battery storage capacity.

According to regional project tracker MEED Projects, Ewec has over $16bn-worth of power and water projects in the execution stage as part of its long-term procurement programme to increase renewable energy and low-carbon water production capacity.

This includes a 5.2GW Abu Dhabi solar and battery energy storage system (bess) round-the-clock renewable energy project, as well as three 1.5GW solar photovoltaic independent power projects (IPP): Al-Ajban, Al-Khazna and Al-Zarraf.

It also comprises the 1GW Al-Dhafra open-cycle gas turbine power plant, the 2.5GW Taweelah C combined-cycle gas turbine (CCGT) plant and a separate 400MW bess IPP.

As previously reported, it is expected that the developer's agreement for the 3.3GW Al-Nouf 1 CCGT IPP will be signed by the end of the year, while contractors are preparing to submit bids for a separate 2.6GW power plant project in Ajman.

The expansion of solar and battery storage is expected to reduce the system's reliance on gas-fired generation. However, gas-fired generation will continue to provide flexibility to support the system and balance intermittent renewable power output, according to Ewec.

The offtaker also expects RO desalination to account for more than 95% of total water production by 2035, with the procurement programme supporting the Abu Dhabi Department of Energy's Clean Energy Strategic Target 2035 for electricity production and the UAE Net Zero by 2050 Strategy.