Hitachi Energy warns of transformer supply crunch due to rising demand

Hitachi Energy, the world's largest transformer maker, has reported a significant supply crunch in the transformer industry. The company’s CEO, Andreas Schierenbeck, stated that demand is outpacing the ability to produce necessary grid equipment. The surge in demand is driven by the needs of renewable energy projects and data centers for artificial intelligence. Schierenbeck noted that increasing production capacity will be challenging and may not keep up with the urgent requirements. As a result, delays in utility projects are expected, and the lifespan of current infrastructure may need to be extended. Schierenbeck emphasized that the entire industry is struggling to meet the rising demand.