NEWS

HD Hyundai Electric has signed a contract with a U.K. power company to supply eco-friendly ultra-high-voltage transformers, accelerating its expansion into Europe’s green transformer market following its success in the United States.

HD Hyundai Electric, the power equipment and energy solutions affiliate of HD Hyundai, announced on July 31, that it has recently concluded a supply contract with U.K. power company National Grid for a total of 13 ultra-high-voltage transformers: twelve 400-kilovolt (kV) units and one 275 kV unit. The contract is valued at 140.4 billion won, and final delivery is scheduled for 2028.

Of the transformers awarded in this contract, 11 units are eco-friendly models. These eco-friendly transformers replace conventional crude-oil-based mineral insulating oil with plant-based synthetic ester oil that is naturally biodegradable. They also offer a lower fire risk, making them particularly suitable for renewable energy power plants, urban areas, and sensitive industrial facilities.

Because such products require advanced technology and respond to growing demand for eco-friendly solutions, their prices are set at a relatively high level. HD Hyundai Electric has already proven its quality and technological capabilities by winning orders for transformers with the same specifications in the United States and other markets.

This latest order follows a contract signed in May with a Scottish power company for ultra-high-voltage transformers, marking a second major win in just two months and further strengthening HD Hyundai Electric’s foothold in the U.K. transformer market.

According to the International Energy Agency (IEA), the U.K. aims to fully decarbonize its power sector by 2035, and plans to expand installed capacities of offshore wind, solar power, and nuclear power to 50 gigawatts, 70 gigawatts, and 24 gigawatts, respectively. As a result, the need to replace and expand power infrastructure such as transformers is becoming increasingly apparent, making the U.K. one of the key markets for power equipment.

A representative of HD Hyundai Electric said, “This order is the result of our accumulated experience and quality competitiveness in supplying synthetic-ester transformers to markets such as the United States,” adding, “We will use this as an opportunity to expand the supply of eco-friendly products in the European market.”

(*) Insulating oil: Oil used inside a transformer to provide electrical insulation and cooling, maintaining electrical separation between components and preventing equipment from overheating.