RWE signs agreements with Hitachi Energy and Aibel for HVDC systems

Hitachi Energy and Aibel have signed separate framework agreements with German renewable energy company RWE for multiple high-voltage direct current (HVDC) systems to accelerate the integration of offshore wind power into the grid.

The agreement follows the signing of a Capacity Reservation Agreement (CRA) last November that reserves the engineering and production capacity to develop three major HVDC projects.

The projects will allow electricity transmission from offshore wind farms to onshore connection points.

Under the global framework agreements, RWE has contracted Hitachi Energy and Aibel in a split contract model. The onshore construction work will be contracted during the development phase of the projects by RWE. The agreement includes the supply of HVDC systems and construction of the actual platforms.

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Hitachi Energy will supply its voltage source converter (VSC) systems, to convert alternating current (AC) to direct current (DC) for long-distance transmission to shore, where it will be converted back to AC for the grid. Aibel will be responsible for the Engineering, Procurement and Construction (EPC) on the design, construction, and commissioning of the offshore platforms.

The framework agreement stipulates how the three projects, and potentially additional projects in the future, will be handled. It allows Hitachi Energy and Aibel to manage resources such as securing supply chain, hiring workforce, allocating engineering and manufacturing capacity, and ordering materials ahead of time.

Sven Utermöhlen, CEO of RWE Offshore Wind said, “Through our partnership with Hitachi Energy and Aibel, we are able to secure early the necessary engineering and production capacity for three major HVDC systems to ensure future offshore wind farms can be integrated into the grid. Given the challenging market situation, this type of agreement is exactly what we need to succeed.”

Niklas Persson, managing director at Hitachi Energy’s Grid Integration business commented, “We’re pleased to have been selected by RWE in this agreement to allow countries to achieve their carbon neutrality goals.”

Persson added, “The energy transition requires us to deploy innovative solutions at scale and speed. This new business model reflects our strategic shift to becoming more of a partner to support our customers in their effort to strengthen the power grids for the increased integration of clean renewables into the energy system.”

The three projects are the latest of several jointly undertaken by Hitachi Energy and Aibel since the two companies announced their strategic partnership in 2016. Key offshore wind projects won by the two companies include converter stations for Dogger Bank A, B, and C and Hornsea 3 Link 1 and Link 2 in the UK, as well as Dolwin 5 in Germany.