Hitachi and ABB Sign Joint Venture for HVDC in Japan

Hitachi, Ltd. and ABB, a leading power and automation group, signed a formal contract to establish a joint venture company for high-voltage direct current (HVDC) transmission in Japan. Closure of the transaction is subject to customary regulatory approvals with the intention of establishing the joint venture in August. Hitachi will own 51 percent of the joint venture and ABB will own 49 percent. The new joint venture will be based in Tokyo and will provide ABB's latest technology to HVDC projects on which Hitachi is the prime contractor, taking full responsibility for all aspects of direct current (DC) systems from design to engineering and equipment supply, as well as after-sales service. The intention is to contribute to wide-area electric power distribution networks in Japan by combining Hitachi's sales network, project management know-how, and quality assurance processes with leading-edge HVDC technology and system integration capability from ABB.

This strategic partnership between the two companies will contribute to the evolution of Japan's power network. Hitachi and ABB will explore further strengthening of the relationship and address opportunities to widen the scope for future collaboration.

HVDC is a technology used mainly for transmitting electricity between two grid systems. The supply side power is converted from alternating current (AC) to direct current (DC) before being transmitted, and it is then converted back to AC in the receiving side system for use. The system is ideal for long-distance transmissions due to its ability to minimize electricity losses and to its lower space requirements and construction costs. It is also well suited for interconnections between two grids different frequencies.

Driven by factors such as the growing installation of renewable energy and reforms to the electric power system, use of HVDC transmission in Japan is expected to be increasingly deployed for applications, such as grid connections for offshore wind power integration and regional interconnections in the transmission grid. In particular, it is anticipated that greater use will be made of VSC-HVDC, which is already widely used in global markets, in response to the difficulties associated with the use of the LCC-HVDC that has predominated in Japan to date, and includes controlling reactive power or starting up an AC system when no power supply is available on the grid.

Keywords: High-Voltage Direct Current (HVDC), Electric Power Distribution, Power Network, Transmission Grid, ARC Advisory Group.