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In profile
Hitachi Energy
Energising the Transition
BIG PROJECT ME SPEAKS TO MOSTAFA ALGUEZERI, MANAGING DIRECTOR OF HITACHI ENERGY IN THE UNITED ARAB EMIRATES AND ITS OVERSIGHT COUNTRIES (INCLUDING UAE, OMAN, BAHRAIN, QATAR, KUWAIT, JORDAN, IRAQ AND PAKISTAN), ABOUT HOW THE GLOBAL TECHNOLOGY SOLUTIONS PROVIDER IS HELPING COUNTRIES ACROSS THE MENA REGION TO MOVE AWAY FROM TRADITIONAL FOSSIL FUELS AND INTO A CLEAN ENERGY FUTURE
n October 2021, Hitachi ABB Power Grids, the global technology solutions provider, announced it became Hitachi Energy, reflecting its transition into the Hitachi Group, and the rapidly shifting energy landscape and the opportunities available to create economic, environmental, and social value.
The company explains that being part of Hitachi will enable it to effectively position its technologies and services to existing and future customers around the globe, opening a vast range of opportunities in areas such as sustainable mobility and smart life.
Having formally registered itself as Hitachi Energy Ltd on June 30, 2021, the business is currently undertaking the formal processes for the name change globally.
Hitachi Ltd has an 80.1% stake in the joint venture, which started operations on July 1, 2020, and ABB Ltd, holds the remainder. By transitioning to a new identity, it hopes to broaden its commitment towards advancing a sustainable energy future for all.
By 2050, demand for global electrification will be nearly double what it is today, a report entitled IEA Net Zero 2050 predicts, adding that electricity will be the backbone of the entire energy system. This carbon-neutral energy system will be highly interconnected, with HDVC, a technology pioneered by Hitachi Energy almost 60 years ago, set to be a key enabler for bulk renewable energy resources integration and reliable interconnection across countries and continents.
Power leader
Hitachi Energy’s portfolio and scope of business puts it at the forefront of the region’s energy transition, says Mostafa AlGuezeri.
38,000
Total number of Hitachi Energy employees
Progress on the development of interconnected energy systems is already underway, with the company contributing to several of these projects, such as the recently announced Saudi Arabia – Egypt HDVC interconnector agreement, the first ever large-scale interconnector in the Middle East and North Africa.
Another project it is involved in is the North Sea Link, which is the world’s longest subsea interconnector at 720 kilometres, linking Norway and the UK and enabling the exchange of renewable energy between the two countries.
Furthermore, Hitachi Energy is also supporting customers with grid edge solutions such as microgrids and energy storage, helping communities reduce their reliance on fossil fuels and gain energy independence.
“With the portfolio that we have, we consider ourselves as one of the leaders of the power sector. With this portfolio, and the scope of business that we have, we’re at the forefront in terms of putting all our support, technology and research and development together, to support the energy transition, which is required at this moment,” says Mostafa AlGuezeri, Managing Director of Hitachi Energy, during an exclusive interview with Big Project ME.
“We continue to serve customers leveraging our global footprint, in industry, including power utilities, and our products, services and
If you look at where we’ve reached in the UAE, with all the development and technology, the emphasis on renewables and digitalisation, and what they’ve achieved here – they’re taking the next step”
solutions with a more sustainable, flexible and secure energy system. Then, at the end, with our digital solutions we can help all our customers worldwide, who are mainly governments, with reaching their targets towards carbon neutrality.”
With more than 38,000 employees around the world, access to 90 countries, and an installed base in 140 countries, the company is undoubtably a global player, for AlGuezeri, his focus is on the UAE, wider GCC, as well as Pakistan.
He believes that the MENA region is set to play a crucial role in the global energy transition to renewables, citing the Saudi Arabia and Egypt interconnection agreement, the megaprojects in Saudi Arabia, and the UAE’s own massive solar plant projects, as being key enablers for the region’s evolution.
“If you look at where we’ve reached in the UAE, with all the development and technology, the emphasis on renewables and digitalisation, and what they’ve achieved here – they’re going ahead in all these sectors and taking the next step. When you look at other countries in the GCC – take Saudi Arabia for example, the NEOM project is a huge one that we’re looking at, then we’re now going into interconnection between two continents with the Egypt – Saudi Arabia interconnection agreement. This is something unique that is starting in the Middle East. It’s a first for the region, and hopefully many more will follow.
“Other countries are now realising that they were late into this development and are now starting to look into renewables, examining how they can increase interconnectivity with other countries. When you look at Smart Cities, we have the technology to increase coverage and support, as well as give more flexibility and resilience to the energy system. This is also something that many countries are looking at,” AlGuezeri says.
“Middle East and African markets are very important as they continue to develop. We are committed to support this, helping in energy transition with demand for electricity rising, as it becomes the backbone of the energy system.”
He adds that this transition needs to happen imminently, as there is little
Worldwide presence
Hitachi Energy’s digital solutions allow them to help customers worldwide.
time to waste, meeting the needs of a growing population while combating climate change is one of the most urgent challenges of our time.
“We are late, in my opinion. There is no time to waste. Climate change is caused by us humans, with the fast pace evolution of mankind, we need to act now to address this. I’m very pleased to read the targets and statements from COP26, where countries have announced their targets to reduce carbon emissions, but it’s a question of whether they can adapt and adopt the right policies and guidelines in place that enable technology and facilitate new business models to deploy at scale and with speed. We all need to collaborate as climate change is a global challenge that needs a global solution.”
In the MENA region, where traditionally power generation has been linked to fossil fuels, there is a clear-cut drive for change towards renewables. Now, with investment into renewable energy sources increasing, the capability to provide electricity from these sources is growing at scale, accelerating the
No time to waste
With climate change an imminent threat, there is no time to waste when it comes to transitioning away from traditional energy sources. pace of transition. This poses a challenge to governments and utility providers, who now have completely different sources of power generation coming into their energy system.
While this can naturally cause some instability, those governments that are well prepared and forward thinking will be able to apply the latest technology and products to their energy system, to ensure stability, reliability, and continued performance. This is where Hitachi Energy comes in, says AlGuezeri, who explains that part of the company’s remit is to be prepared to liaise with governments to support them through the energy transition.
“You need innovative products and solutions that can help your energy system be sustainable, flexible and secure, and available so that you don’t lose power at any time. That is why I say that we’re the leaders in this scope. We started a long time back with technology and taking it step by step, investing into research and development, and having the latest state-of-the-art technology delivered to every country.
“By applying the intelligence of digitalisation we’re enabling customers to design, make the right decisions and to look into having access to all the data and efficiently plan your maintenance operations,” he explains.
Once again citing the UAE as an example for the region, AlGuezeri highlights solar projects
like Mohammed Bin Rashid Solar Park and Al Dhafra Solar Project as reference points for neighbouring countries which plan to build their renewables infrastructure. Given Hitachi Energy’s expertise in the sector, he states that the company is ready and able to support clients in becoming pace setters in planning around the energy transition. “We are there as a catalyst for governments, or the utilities providers. With our technologies, we can support them. We have a big interconnection project in Pakistan, and we’re looking at how we can support the client with different solutions.
“In Egypt, we are also doing a lot with all the renewables projects – the wind farms – and how they can be integrated into the network, and then interconnected to another continent. We’re providing solutions and products to cater for a sustainable, flexible and secure energy system.”
However, as an enabler of this transition, it is incumbent on Hitachi Energy to be at the forefront of research and development for the industry. To that end, the company has a significant budget for R&D, allowing it to stay in front of its competition. In addition, AlGuezeri says that the company is committed to hiring new employees worldwide, while also retaining the knowledge and expertise that it has built up over the years.
“People are the main assets of our company, as are knowledge and the data. Of course, you need to acquire new talent to take the next steps forward, and we’re looking at talent in all the countries we’re active in. We are looking for people who think and act differently and challenge us.
It’s about ‘Diversity of Thought’. Bringing together people of different backgrounds, nationalities, genders, ages, attitudes, and education is critical to success. “An important part of this is attracting more women to the company, but it’s also about the overall diversity of the workforce, which is ultimately crucial for innovation and sustainable growth,” he asserts, adding that on a personal note, he is keen to improve gender diversity in leadership positions across the company’s operations. We’re looking at hiring more female leaders – which is something we’ve started in Europe already.” Currently Hitachi Energy worldwide has a female population of 19 percent, our target is to have at least 25 percent worldwide by 2025.
Catalyst for governments
Hitachi Energy positions itself as a catalyst for governments to begin the energy transition.
Leading the way
The UAE’s investment into alternative energy sources is showing the way forward for the MENA region.
We are there as a catalyst for governments, or the utilities providers. With our technologies, we can support them. We’re providing solutions and products to cater for a sustainable, flexible and secure energy system”
Another major focus for the company, and for AlGuezeri, is the digitalisation of the power sector. As mentioned previously, he believes that data will be key to improved performance and efficiency across energy systems, and with interconnection between countries and continents likely to be more common in the coming years, the need for increased digitalisation will be paramount. To achieve this, he asserts that leadership from the very top will be essential for it to truly be of value.
2050
Demand for global electrification will be double current supply levels
“We have the latest technology and software available in our portfolio to support the utilities sector, smart cities ambitions, or any client. Whether its Asset Performance Management, Field Service Management, Utilities Management, regardless of whether it’s industry or utilities, digitalisation must be a highmanagement decision. The C-Suite level must want to go into it, if they have it in their mind, then it will cascade down through the company. We can then come and work with and help them develop a comprehensive digital system, for it to be sustainable, flexible, and secure at all times.
“When I talk to different C-Suite level individuals within the region, they are very keen, and we have immediately started workshops to discuss with their teams how we can get them to the required level. Finally, as the pioneering technology leader, we collaborate with customers and partners to advance a more sustainable energy future for all.” he says in conclusion.
