Hitachi Energy Invests $100M in Power Transformer Facilities in Varennes, Montreal

Hitachi Energy is accelerating its global transformer manufacturing capacity to fulfill long-term electrification plans and demands with an investment of more than $100 million toward upgrades and modernizations for a power transformer factory in Varennes and additional facilities in Montreal. Through Investissement Quebec, a portion of the Montreal-based funding is provided by the Government of Quebec.

The Varennes factory is Hitachi Energy’s top manufacturing location for large-scale power transformers in North America, assisting both regional and national power grids and serving utility-scale renewable energy projects. With the funding, a new transformer testing facility will be built onsite to meet Quebec’s increasing demand for sustainable energy solutions. At a planned 130,000 square feet, the facility will support certification for power transformers manufactured in the Varennes factory. The testing location is slated for completion by the end of 2027.

“Globally, demand for transformers and electrical equipment continues to grow at an unprecedented scale,” said Bruno Melles, Business Unit Transformers, Managing Director at Hitachi Energy. “At Hitachi Energy we are continuously developing our global footprint and capacity to address our customers’ mid- and long-term needs. In addition to our global investments, the support of the Quebec Government will help to address North America’s rising demand for transformers to support fast-growing sectors like renewable energy, data centers, and industrial electrification, as Quebec strengthens its role as a key player in the energy transition.”

The current Varennes factory has been in operation since 1971, covers more than 300,000 square feet, and employs approximately 330 people. It designs and engineers a range of transformers, including large power step-up transformers, high-voltage auto-transformers, shunt reactors, and transformers for static compensators and high-voltage direct current transmission systems. The factory has a manufacturing capacity ranging from 100-1,200 megavolt-amperes and its operating voltage climbs as high as 800 kV.

Transformer factory in Quebec; Image Credits: Hitachi Energy

Transformers are a primary asset for a multitude of applications across the power value chain for transmission and electricity distribution. These applications include renewables integration, grid interconnections, powering data centers, and electrifying transportation.

Hitachi Energy was recently contracted by SP Energy Networks to design and install a power quality solution to enhance the flow of renewable energy from Scotland to England and stabilize the grid. SP Energy Networks’ substation in Eccles, United Kingdom is equipped with two sets of an SVC Light STATCOM and a synchronous condenser controlled by the MACH control system connected at a common central node.

“The innovative power quality solution will increase the transfer capacity between Scotland and England by up to 280 MW by improving the transmission network’s strength and stability as more renewable generation is connected in Scotland,” said Billy Moore, Senior Project Manager at SP Energy Networks. “The criticality of technology such as this will become more important as we reduce the usage of fossil fuels.”

The STATCOM installations use Hitachi Energy’s power electronics and the MACH control and protection solution to provide system strength, instant voltage control, and maximum power flow. The SVC Light STATCOM and synchronous condenser with combined control generate or absorb reactive power to manage the grid voltage and maintain system stability and resilience. A MACH Control System uses computers, micro-controllers, and digital signal processors to act as the control center for the SVC Light.