meed-logo

line1 line2 line3
SIGN IN / REGISTER

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.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12898322/main.jpg
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Contractor wins $161m Meraas City Walk Crestlane deal

    7 September 2026

    Local contractor Parkway International Contracting has won a AED590m ($161m) contract to build phase three of the City Walk Crestlane project in Dubai’s Al-Wasl area.

    The contract covers the construction of four residential buildings comprising 394 apartments.

    Construction is expected to commence shortly, with completion slated for 2028.

    Local real estate developer Meraas, part of Dubai Holding, awarded the contract.

    In December last year, Meraas announced the next phases of the City Walk Crestlane project as it continues to expand its City Walk residential community in Dubai.

    City Walk Crestlane 4 and 5 comprise four residential towers offering 360 one- to five-bedroom units.

    In June 2025, Meraas announced the initial phases of the City Walk Crestlane project, which comprise two residential towers offering 198 one- to five-bedroom units.

    Earlier this year, Meraas awarded two major construction contracts worth AED2.4bn ($653m) to build 557 villas as part of the second phase of its residential community, The Acres, in Dubailand.

    The contracts were awarded to local construction firms United Engineering Construction (Unec) and GCC Contracting. Unec will build 371 three- to five-bedroom villas at The Acres, while GCC Contracting will deliver 186 five- to seven-bedroom residences at The Acres Estates.

    Meraas’ latest project contract awards in Dubai reflect heightened real estate activity in the UAE’s construction market. Schemes worth more than $323bn are in execution or planning stages, according to UK-based analytics firm GlobalData.

    The company forecasts that output from the UAE’s residential construction sector will grow by 3% in real terms between 2026 and 2029, supported by developments in infrastructure, energy and utilities, as well as residential construction projects.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19433882/main.jpg
    Yasir Iqbal
  • Six groups qualify for Saudi Arabia’s Qassim airport PPP

    7 September 2026

    Saudi Arabia’s Civil Aviation Holding Company (Matarat), through the National Centre for Privatisation & PPP (NCP), has qualified five groups and one standalone company to bid for a contract to develop Prince Naif Bin Abdulaziz International airport in Qassim, Saudi Arabia.

    These include:

    1. YDA Insaat / Safari Group / Lamar Holding / Egis (Turkiye/local/Bahrain/France)
    2. Ports Projects Management & Development Company / Algihaz Holding (local/local)
    3. Mada International Holding / TAV Airports Holding (local/Turkiye)
    4. Namaya International Investment Company / Oman Airports Management Company / AlBawani Capital / Tanama (local/Oman/local/UAE)
    5. Vision Invest / Asyad Holding / DAA International (local/local/Ireland)
    6. GMR Airports (India)

    The prequalification process follows 89 firms expressing interest in the contract, as MEED reported in March.

    The project scope includes the redevelopment of the passenger terminal as well as other associated facilities such as airside infrastructure, including runway, taxiways and aprons.

    The project will be developed on a design-finance-construction-operations-maintenance-transfer basis.

    The clients issued an expression of interest notice for the project on 9 February, and companies were given until 23 February to submit responses.

    Tendering is also ongoing for the new Taif International airport project in Mecca Province. 

    The new Taif International airport will be located 21 kilometres southeast of the existing Taif airport and will have a capacity of 2.5 million passengers by 2030.

    In addition to a new airport terminal, the proposed design features a runway with a full-length parallel taxiway connecting to a single commercial apron.

    The scope includes facility buildings, utility networks, car parks and access roads, as well as provisions for additional expansions to meet future subsystem requirements.

    The new airport is expected to meet the projected increase in demand by 2055 and contribute to the economic development of the city of Taif and its surrounding areas, in line with the kingdom’s National Aviation Strategy.

    It is also expected to meet the needs of Umrah pilgrims, as an alternative within the region’s multi-airport system, which includes King Abdulaziz airport in Jeddah, Prince Mohammed Bin Abdulaziz airport in Medina and Prince Abdulmohsen Bin Abdulaziz airport in Yanbu.

    Previous tenders

    The Taif, Hail and Qassim airport schemes were previously tendered and awarded as public-private partnership (PPP) projects using the build-transfer-operate (BTO) model.

    Saudi Arabia’s General Authority of Civil Aviation (Gaca) awarded the contracts to develop four airport PPP projects to two separate consortiums in 2017.

    A team of Turkiye’s TAV Airports and the local Al-Rajhi Holding Group won the 30-year concession agreement to build, transfer and operate airport passenger terminals in Yanbu, Qassim and Hail.

    A second team, comprising Lebanon’s Consolidated Contractors Company, Germany’s Munich Airport International and local firm Asyad Group, won the BTO contract to develop Taif International airport.

    However, these projects stalled following the restructuring of the kingdom’s aviation sector.

    Saudi Arabia has already privatised airports including the $1.2bn Prince Mohammed Bin Abdulaziz International airport in Medina, which was developed as a PPP and opened in 2015.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19433451/main.jpg
    Yasir Iqbal
  • Dubai sets October deadline for metro Gold Line

    7 September 2026

     

    Dubai’s Roads & Transport Authority (RTA) has set a deadline of 9 October for contractors to submit their prequalification statements for a contract to build the new Gold Line as part of the Dubai Metro network’s expansion.

    The previous deadline was 7 September.

    The RTA issued the request for qualification notice for the project in June, with an initial submission deadline of 17 August, as MEED exclusively reported.

    The prequalification notice followed the RTA’s invitation to contractors to express interest in building the new Gold Line in May.

    Dubai officially announced the launch of the new Gold Line in April.

    In a post on social media site X, Sheikh Mohammed Bin Rashid Al-Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, said the project will cost about AED34bn ($9.2bn).

    The Gold Line will increase Dubai Metro network’s total length by 35%.

    The project is scheduled for completion in September 2032.

    The Gold Line will be a fully underground network covering more than 42 kilometres, with 18 stations.

    It will pass through 15 areas in Dubai, benefiting 1.5 million residents.

    The project is expected to provide connectivity to over 55 under-construction real estate development projects.

    The Gold Line will start at Al-Ghubaiba in Bur Dubai and end at Jumeirah Golf Estates.

    It will connect to Dubai Metro’s existing Red and Green lines and integrate with the Etihad Rail passenger line.

    The contractor will be responsible for the design and build of all civil works, electromechanical equipment, rolling stock and rail systems.

    The selected contractor will also be required to assist in the systems maintenance and operations during an initial three-year period.

    In October last year, MEED exclusively reported that the RTA had selected US-based engineering firm Aecom to provide consultancy services for the Dubai Metro Gold Line project.

    Stage one covers concept design, stage two covers preliminary design, stage three covers the preparation of tender documents, stage four encompasses construction supervision, and stage five covers the defects and liability period.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19433246/main.png
    Yasir Iqbal
  • Oman power firms move closer to merger

    7 September 2026

    Oman’s Financial Services Authority has given in-principle approval for the proposed merger of Al-Suwadi Power Company and Al-Batinah Power Company.

    In a disclosure to the Muscat Stock Exchange on 6 September, Al-Suwadi said the proposed merger remains subject to legal and regulatory requirements as well as approvals from relevant lenders and shareholders of both companies.

    Al-Suwadi and Al-Batinah are independent power producers (IPPs) that operate two major gas-fired power plants in Oman. Al-Suwadi operates the 750MW Barka 3 IPP, while Al-Batinah operates the 750MW Sohar 2 IPP.

    The two companies began assessing a potential merger in May. Al-Suwadi said the companies have similar assets, business operations and founders.

    The companies recently secured new 15-year power purchase agreements (PPAs) with Nama Power & Water Procurement Company for Barka 3 and Sohar 2.

    The new PPAs will take effect on 1 April 2028 and run until 31 March 2043. They will allow the two plants to continue supplying electricity under long-term contracts after their existing PPAs expire.

    Al-Suwadi said in May that potential cost savings from a merger had been taken into account when the new PPAs were negotiated.

    The company has also started assessing potential refinancing options for its existing financing arrangements, as well as funding requirements for capital expenditure during the new PPA period.

    The refinancing assessment remains at an early stage. Any refinancing would be subject to approvals from the relevant regulatory authorities, existing lenders and Al-Suwadi’s board of directors.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19433240/main.jpg
    Mark Dowdall
  • Red Sea utilities project reaches commercial operation

    7 September 2026

    The utilities system serving Saudi Arabia’s Red Sea tourism destination has reached commercial operation, marking the start of a 25-year concession for one of the world’s largest integrated off-grid utilities projects.

    The Project Commercial Operation Date was signed by Marafiq Red Sea for Energy Company, the Acwa-led project company, and The Red Sea Utilities Company, a subsidiary of Red Sea Global.

    The milestone brings into commercial service an integrated system covering power, potable water, wastewater treatment, district cooling and waste management. The system operates without a connection to Saudi Arabia’s national grid and is powered by renewable energy.

    The project, known as the Marafiq Red Sea Project or Red Sea Utilities Multi-Utilities Project, combines 340MWac of solar photovoltaic capacity with a 1,227MWh battery energy storage system. Acwa describes the battery facility as the world’s largest off-grid battery installation.

    The system currently supplies Red Sea Global’s operational hotels, Red Sea International airport, logistics hub, electric fleet, staff village and community facilities.

    The solar and battery system has been sized to meet the destination’s initial energy demand and can generate up to 760,000MWh of clean electricity a year. At full capacity, it is expected to avoid about 600,000 tonnes of carbon dioxide emissions annually.

    The utilities scope also includes three seawater reverse osmosis plants, a sewage treatment plant (STP), a waste management centre and 32,500 refrigeration tonnes of district cooling capacity.

    The STP has a treatment capacity of 16,000 cubic metres a day. Treated wastewater will be used for irrigation and to support wetland habitats at the destination.

    The integrated system has been designed to expand as further phases of The Red Sea destination come online.

    As MEED previously reported, financial close was reached in February 2022, with about $1.33bn of senior debt facilities and total investment of about $1.84bn.

    The consortium comprises Acwa, China’s SPIC Huanghe Hydropower and Saudi Tabreed. Marafiq holds the 25-year utilities concession.

    Sepco 3, the Shandong Tiejun consortium, was the engineering, procurement and construction contractor. Acwa Operations is responsible for operating and maintaining the utilities system under a long-term agreement aligned with the concession period.

    The project is the first gigaproject in Saudi Arabia to bring its complete utility systems into commercial operation powered solely by renewable energy, Acwa said.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19432588/main.jpg
    Mark Dowdall