HD Hyundai Electric wins $50 mn transformer order in Sweden

South Korea's HD Hyundai Electric Co. said in a regulatory filing on Friday that it signed a 66.2 billion won ($49.6 million) contract to supply power equipment to a Swedish power company.

The order includes five ultra-high voltage transformers rated at 415 kV, scheduled for sequential delivery by 2029.

This marks the first time that HD Hyundai Electric secured a power equipment order in Sweden, a country that competes with France for the position of Europe’s largest electricity exporter.

Sweden produces vast amounts of electricity annually for domestic consumption and supply in countries like Germany, Poland, and Lithuania.

According to international statistics site Our World in Data, Sweden's electricity exports last year amounted to 28.72 TWh, ranking second behind France (49.93 TWh). In 2022, Sweden exported 33.22 TWh, making it the top exporter in Europe.

The transformers in the latest order will be used for the expansion of substations, driven by the increase in renewable energy generation in Sweden.

Recently, Sweden has been working to expand its transmission network capacity to meet growing electricity demand and diversify energy sources in line with global energy security trends.

In line with the European Union’s Green Deal policy, which aims for carbon neutrality by 2050, HD Hyundai Electric expects that the transition to green energy across various industries, including transportation, steel, and defense, will further increase electricity demand in Sweden and Europe.

HD Hyundai Electric's annual order value from the European region in 2023 was $333.7 million, a 91.8% increase compared to the previous year.

Write to Hyung-Kyu Kim at khk@hankyung.com