Introduction
Hitachi Energy, a global leader in energy technology and infrastructure solutions, has strategically invested in India by establishing a robust Global Capability Center (GCC). India plays a key role in Hitachi Energy’s global operations, focusing on renewable energy initiatives, smart grid technologies, and advanced manufacturing.
This case study explores how Hitachi Energy’s GCC in India aligns with the company’s sustainability goals, the challenges it has addressed, and its contributions to the Indian economy and the global energy sector.
Why Hitachi Energy Chose India for its GCC
1. Skilled Workforce in Energy Technology
India’s vast pool of engineers and technical experts, particularly in energy and infrastructure sectors, provided Hitachi Energy with a capable workforce to support its global operations.
2. Renewable Energy Potential
India’s commitment to renewable energy, with goals to achieve 450 GW of renewable capacity by 2030, made it a prime location for developing and deploying clean energy solutions.
3. Strategic Manufacturing and Export Hub
India’s geographical location and trade agreements make it an ideal hub for manufacturing and exporting energy solutions to Asia-Pacific, the Middle East, and Africa.
4. Government Policies and Incentives
The Indian government’s initiatives such as Make in India and Production-Linked Incentive (PLI) Schemes encouraged investment in energy infrastructure and manufacturing.
Hitachi Energy’s GCC Operations in India
1. Establishing a Global Operations Hub
- Hitachi Energy’s GCC in India focuses on innovation, design, and global support for projects in energy transition technologies.
- The center operates out of locations such as Bengaluru, Vadodara, and Chennai, employing over 3,500 professionals.
2. Manufacturing Facilities
- Hitachi Energy set up advanced manufacturing facilities for transformers, high-voltage equipment, and energy storage systems.
- The facilities cater to domestic demands and export markets, with a focus on quality and sustainability.
3. Research and Development
- The Indian GCC houses a dedicated R&D center, driving innovations in smart grids, grid automation, and energy storage.
- Collaboration with academic institutions and startups fosters cutting-edge advancements.
4. Renewable Energy Solutions
- The GCC develops and implements solar and wind energy systems, helping India and other markets transition to greener energy sources.
- Products such as e-mesh™ solutions support grid integration of renewable energy.
Impact of Hitachi Energy’s GCC in India
1. Supporting Global Operations
- The Indian GCC provides critical engineering and technological support to Hitachi Energy’s global projects, enhancing efficiency and innovation.
- Key contributions include advanced designs for HVDC (High Voltage Direct Current) systems and smart grids.
2. Advancing India’s Energy Infrastructure
- Hitachi Energy has partnered with Indian utilities to upgrade the country’s grid infrastructure, improving reliability and reducing energy losses.
- Initiatives like microgrid installations in rural areas have enhanced energy access.
3. Export Growth
- The GCC exports high-quality transformers and energy systems to over 40 countries, contributing to India’s status as an export hub for advanced energy solutions.
4. Employment Generation
- Directly employing over 3,500 professionals, Hitachi Energy’s GCC supports indirect jobs in supplier networks and construction activities.
5. Promoting Sustainability
- The GCC drives sustainability by manufacturing energy-efficient products and integrating renewable energy into grids, reducing carbon footprints globally.
Challenges Faced by Hitachi Energy’s GCC
1. Regulatory Hurdles
Navigating complex energy sector regulations and obtaining necessary approvals posed initial challenges for Hitachi Energy’s projects in India.
2. Supply Chain Disruptions
Global supply chain issues, particularly during the COVID-19 pandemic, impacted the availability of key components for energy systems.
3. High Competition
The presence of established players like Siemens and GE in the Indian market required Hitachi Energy to consistently innovate and offer superior solutions.
Key Contributions of the GCC
1. Driving Renewable Energy Adoption
- The GCC has supported over 10 GW of renewable energy projects, including grid integration and energy storage solutions.
- Products such as grid stabilizers have improved renewable energy adoption rates globally.
2. Smart Grid Innovations
- Hitachi Energy’s GCC has developed advanced smart grid technologies, enabling real-time monitoring and management of energy networks.
- These systems reduce power outages and optimize energy usage.
3. Export Excellence
- With a 50% export ratio, Hitachi Energy’s Indian manufacturing units have positioned the country as a leader in energy solutions for emerging markets.
4. Skill Development
- Training programs conducted at the GCC have upskilled Indian professionals in areas like grid technology, automation, and sustainability practices.
Lessons Learned from Hitachi Energy’s GCC Success
1. Investing in Local Ecosystems
Collaboration with local suppliers, academic institutions, and startups enhanced innovation and reduced costs for Hitachi Energy.
2. Commitment to Sustainability
By aligning its operations with global green energy goals, the GCC ensured long-term relevance and a positive environmental impact.
3. Adapting to Market Needs
Hitachi Energy customized its solutions to address India’s unique energy challenges, such as rural electrification and grid reliability.
4. Leveraging Digital Transformation
The integration of digital tools like IoT-based grid monitoring and predictive analytics enhanced operational efficiency.
Future Plans for Hitachi Energy’s GCC
- Expanding Renewable Energy Solutions: The GCC aims to develop next-generation solar and wind energy systems tailored for emerging markets.
- Focus on Energy Storage: Investments in battery energy storage systems will address grid stability challenges and renewable energy intermittency.
- Digital Grid Expansion: Advanced smart grid technologies, including AI-driven systems, will further optimize energy management.
- Increase Export Capacity: Plans are underway to boost exports by 30% over the next five years, targeting markets in Africa and Southeast Asia.
Conclusion
Hitachi Energy’s GCC in India serves as a cornerstone for its global energy operations, contributing to innovation, sustainability, and economic growth. By leveraging India’s talent and market potential, the company has achieved remarkable success in both local and international energy projects.
The GCC’s focus on renewable energy, advanced technology, and sustainability aligns with the world’s transition toward greener energy solutions. As Hitachi Energy continues to expand its capabilities, its GCC in India will remain a vital hub for driving energy transformation worldwide.
