RWE Awards HVDC Contracts to Hitachi and Aibel

Business & Finance

May 8, 2024, by Adnan Memija

German energy company RWE has signed framework agreements with Hitachi Energy and Aibel for the joint supply of three high-voltage direct current (HVDC) systems for the company’s offshore wind farms.

The agreements are long-term as the secured HVDC systems are designated for offshore wind projects from RWE’s global development pipeline, which are planned to be connected to the grid at the beginning of the next decade.

The deal includes the supply of HVDC systems, which allow electricity transmission from offshore wind farms to onshore connection points, and construction of the actual platforms.

The onshore construction work will be contracted during the development phase of the projects, said RWE.

“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,” said Sven Utermöhlen, CEO of RWE Offshore Wind.

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The framework agreements allow Hitachi Energy and Aibel to manage the resources required to deliver the three HVDC systems, such as securing the supply chain, hiring a workforce, allocating engineering and manufacturing capacity, and ordering materials ahead of time.

The arrangements provide RWE with the potential to procure additional HVDC systems for future offshore wind projects worldwide, said the German energy giant.

According to RWE’s website, the company owns and operates offshore wind farms throughout Europe representing a total of 3.3 GW while its goal is to achieve grid capacity of more than 9 GW by 2030.

By taking part in additional auctions in Europe, the Americas, and the Asia-Pacific region, RWE has several offshore projects ahead of it, including its largest wind farm currently under construction, the 1.4 GW Sofia in the UK. The company also owns and operates the 342 MW Kaskasi offshore wind farm in Germany which was commissioned in March 2023.