'Challenging market': RWE locks in long-term HVDC deals for future offshore wind
Developers have struggled to secure supply for HVDC systems, with wait times stretching into the 2030s
As supply chain issues continue to rock the offshore wind sector, German energy giant RWE has moved to shore up its supply of high-voltage direct current (HVDC) systems through two long-term deals with Hitachi Energy and Aibel.
The agreements aim to supply cable for offshore wind projects that RWE does not expect to be connected until next decade.
The increasing demand for HVDC technology is straining existing supply chains for both system components as well as special transport and installation equipment, it said.
Current delivery dates for new orders of HVDC converters and cables are in the early 2030s.
Sven Utermöhlen, CEO RWE Offshore Wind, said the agreements “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.”
Japan’s Hitachi is one of three major HVDC suppliers, along with GE Vernova and Siemens Energy.
Under its agreement with RWE, Hitachi will supply its voltage source converter systems to convert alternating current to direct current for efficient long-distance transmission to shore, where it will be converted back to AC for the grid.
Norway’s Aibel will meanwhile be responsible for the Engineering, Procurement and Construction on the design, construction, and commissioning of the offshore platforms.
Niklas Persson, managing director of Hitachi’s grid integration business, said the agreement “reflects our strategic shift to becoming more of a partner to support our customers in their effort to strengthen the power grids for the integration of increased clean renewables into the energy system.”
Aibel CEO Mads Andersen said the agreement shows his company has a “reliable common delivery model with a balanced risk-reward profile.”
“The capacity reservation provides predictability and further strengthens our position as a leading supplier to the offshore wind market.”
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