Powering India's energy future: In conversation with N Venu, MD & CEO, India and South Asia, Hitachi Energy

India's energy sector is undergoing a defining shift, marked by the simultaneous rise of renewable power, infrastructure modernisation, and technological transformation. Amid this transition, Hitachi Energy continues to play a pivotal role in shaping the nation's evolving energy landscape. In this exclusive interview, N Venu, Managing Director & CEO – India and South Asia, Hitachi Energy, outlines the company's strategic roadmap for FY 2025–26, the role of High Voltage Direct Current (HVDC) technology in India's energy transition, and the emerging interplay between transmission and energy storage systems.
ET Spotlight
As Hitachi Energy embarks on its journey for FY 2025–26, what innovative strategies are you deploying to ensure sustainable growth while navigating the dynamic energy landscape?
India's energy sector is at an inflection point, with an increasing focus on renewables, grid modernisation, and peak demand management. At Hitachi Energy, we understand the nation's ever-evolving energy landscape. Our deep domain knowledge and global experience, along with impeccable local expertise and execution capabilities, enabled us to gain a competitive edge.
The company will remain steadfast in maintaining its leadership in core segments, including utilities and HVDC, while also establishing and strengthening our presence in industries and high-growth segments like data centres. We continue to enhance our service capabilities and digital prowess to accelerate our growth further.
To address the growing energy needs in the country, we have been expanding our capabilities in a strategic and focused manner over the last four years. On average, we have invested approximately INR 100 crore annually during this period. In FY 2024–25, we also completed the fundraise of INR 2,520.82 crore through our first Qualified Institutional Placement. The proceeds are proposed to be deployed in capacity expansion, working capital (including for mega projects such as HVDC), and other avenues to accelerate growth in our India operations.
Our strategic approach and adaptability to the rapidly changing global economic landscape will help us sustain our growth momentum for FY 2025–26.
Live Events
In quick succession, the company secured two major HVDC orders: the Bhadla–Fatehpur and Khavda–Nagpur projects. What is the impact of these orders on existing capacity and the ability to take on other projects?
The gestation period of an HVDC project is close to four to five years. Considering the quantum of work that goes into each HVDC project, timelines are typically spread over a few years, and we can easily deliver within these schedules. Hence, the projects do not overlap or affect the speed of execution.
Over the years, we have also strengthened our production and engineering capabilities, having anticipated the ongoing surge in India's power requirements and the technology needed to accelerate this growth. To meet the growing demand for HVDC and power quality, we inaugurated our advanced power systems factory in Chennai in February 2023.
As pioneers in HVDC technology for over 70 years, we are actively executing and upgrading all forms of HVDC systems. Our ability to handle a comprehensive suite of HVDC solutions enables us to approach projects from a holistic perspective.
Our expertise ensures seamless integration and successful delivery of HVDC projects worldwide. With a highly skilled HVDC team in India, encompassing all disciplines and actively engaged in global projects, execution of specific projects will not be a challenge.
With the growing focus on renewable energy and grid stability, how do you see the ongoing debate on Battery Energy Storage Systems (BESS) as an alternative to High Voltage Direct Current (HVDC) technology in India?
Multiple pathways are required to meet India's ambitious renewable energy targets and ultimately achieve carbon neutrality. There are no shortcuts or singular routes to reaching the mammoth energy goals we have set for ourselves. We should focus on creating an ecosystem where technologies complement each other, not compete.
A recent study shows that approximately 93% of power generation investment is now directed toward clean sources, with solar-plus-storage proving cheaper than coal on a life cycle basis. This shift is evident in ultra mega power projects in solar-rich states like Rajasthan and Gujarat, which require a mix of technologies to efficiently deploy clean energy and maintain grid stability.
On the transmission side, HVDC technology, whether LCC (Line Commutated Converter) and VSC (Voltage Source Converter), remains crucial for reducing transmission losses over long distances, connecting diverse AC grids, and enhancing grid stability, especially with variable renewable energy sources. Storage at the point of generation complements transmission by harnessing high solar irradiance in western states and preventing grid volatility. The Ministry of Power has mandated co-located energy storage systems with 10% of solar plant capacity, a move that truly echoes India's renewable energy ambitions and the need for multiple pathways to achieve carbon neutrality.
With the creation of the new Service Business Unit, how does Hitachi Energy plan to set new benchmarks in service excellence and deliver unparalleled value to its customers?
Worldwide, energy systems have been rapidly expanding to meet the growing demand for clean energy. This has accentuated the need for a safe, reliable, and flexible ecosystem
to inspire the next era of sustainable energy.
To address these dynamic energy requirements, Hitachi Energy is strategically strengthening its service capabilities and portfolio by establishing a new Service Business Unit. With the world's most extensive installed base in transmission and distribution, decades of experience, and established partnerships, Hitachi Energy is strengthening its commitment to supporting customers and partners throughout the life cycle of their energy infrastructure.
In India, we are moving fast to meet our commitments towards renewable energy capacity and have added 30 GW of renewable energy in FY 2024–25. The energy transition is no longer just about sustainability. It's equally about supply security and affordability. Supporting the growth of renewable energy in the country requires a robust HVDC and grid connectivity network that integrates clean energy seamlessly, keeping our long-term growth drivers intact. This will open up further opportunities for service and maintenance across rapidly-expanding grids in the country.
With our new business unit fully operational from April 1, 2025, our immediate focus in India is to tap into the existing INR 82,000 crore installed base we have built over the past 75 years. To maximise our reach, all business units will work closely with Business Unit Service to deliver an end-to-end service portfolio repertoire.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Business Standard

an hour ago

• Business Standard

US bombs Iran nuclear facilities: Impact on stocks, bonds, oil decoded here

Following Israel's attack on Iran's nuclear sites on 13 June, the US bombed three nuclear sites in Iran over the weekend. This military strike was widely anticipated by the market after Mr. Trump's recent warnings. The conflict could escalate further, as the US and Israel may push for the fall of Khamenei's regime in Iran, as it may retaliate to survive. Brent crude oil price is already up about 18 per cent in the past month, fearing escalation, but still remains below $80/bbl. Despite Iran being a heavily sanctioned country, it is estimated that Iran produces 3.0 to 4.0 million barrels of oil (world oil output of 103 million barrels last year), and it largely exports it to China. Iran warned that it may close the Strait of Hormuz (~26 per cent of oil trade), attack US military installations in the region, and take other military and diplomatic actions. We believe a large part of the impact on oil prices has already been reflected; however, oil may see a significant spike even from this level if Iran is able to choke major trade routes or Russia gets directly involved in the conflict. In the medium-to-long term, the supply response may help bring down oil prices, in our view. Wider Geopolitical Conflict Possible but Probability is Low: Russia is already fully occupied with Ukraine and has withdrawn its troops from Syria, resulting in the downfall of Bashar al-Assad's regime, which Russia long supported. The possibility of China or other Middle Eastern countries directly involving themselves in the conflict is also low, in our view. Impact on Indian Financial Markets: India is one of the most vulnerable countries with respect to oil price movements, given our import bill in FY 2025 reached $137 billion (3.7 per cent of GDP). Nevertheless, India's susceptibility to oil prices has reduced drastically recently, given India's solid macroeconomic fundamentals. Hence, overall India's macro and financial market performance may come under pressure, but it may not deteriorate significantly. The INR has already started to come under pressure despite the Dollar Index remaining below 99 levels and closer to 52-week low levels. We expect the INR to fall further against major currencies in coming days, and RBI intervention will be keenly watched. The Indian bond market could see some yield spike, especially longer-tenure bonds, which could offer a buying opportunity, as we believe yields could settle at lower levels in the medium to long term. It is likely that global equity markets may not react much to this conflict, as policies from central banks remain well supportive, including in India. Indian equities may see some knee-jerk reaction, and sectors like defence, IT, and pharma may outperform, while banks, logistics, and interest-rate-sensitive sectors like NBFC and real estate may underperform in the near term. However, we continue to like interest-rate-sensitive names, and any major correction could offer a buying opportunity. Our positive view on gold continues. Despite escalating geopolitical concerns, the dollar hasn't seen any major safe-haven buying, which makes gold even more attractive.

Time of India

3 hours ago

• Time of India

Indian steel PSUs expanding global presence to achieve higher production by 2030

Nagpur: In a bid to explore reserves of key minerals needed for steel making abroad, and eyeing new markets for the commodity as well, three PSUs — Steel Authority of India Limited ( ), National Mineral Development Corporation (NMDC), and Metallurgical and Engineering Consultants (MECON) — will be opening their offices in Dubai by the end of June. Tired of too many ads? go ad free now Eventually, Nagpur-headquartered Manganese Ore India Limited (MOIL) will also join with a setup in the country, Union steel secretary Sandeep Poundrik told TOI on Sunday. Even though there is enough domestic output of iron ore, the country needs to increase the supplies of coking coal, manganese, limestone, and even some of the critical minerals. The idea is to explore the reserves in other countries to meet the shortfall. Poundrik was in the city to attend the 63rd foundation day of MOIL on Sunday. Manganese is needed for strengthening steel in its manufacturing process. Soon, MOIL chairman-cum-managing director (CMD) AJ SAxena will be visiting Gabon to explore the opportunities for manganese mining in the country. The govt is also eyeing critical minerals in Brazil and Argentina, said the officer. Poundrik said Dubai has been chosen for opening the PSUs' office because a large part of the African market is controlled from there. Among Gulf countries, Oman has a sizeable quantity of limestone reserves, which again is a key input for steel making. With the availability of gas in the Middle-Eastern countries, the govt is also eyeing scope for DRI grade of steel from India, said the officer. Poundrik said the country is currently making 151 million tonnes of steel, with around 9.5 million tonnes being imported. The country is a net importer at present because of China dumping the commodity. Tired of too many ads? go ad free now A safeguard duty has been imposed, and it is expected to yield results. However, by 2030, India's production is expected to reach 300 million tonnes, with the capacity reaching around 400 million tonnes, he said. On the recent move of the European Union (EU) tightening restrictions on steel imports, Poundrik said India would take time to bring down the carbon imprint. EU nations have to follow the norms under the carbon border adjustment mechanism on this. With predominantly blast furnace technology in India, it would still take time to meet the EU norms. However, India is not much dependent on the EU, and there is a vast global market for its steel, he said. MOIL achieves highest quarterly production MOIL CMD Ajit Kumar Saxena said this quarter the company achieved the highest ever quarterly production at 5 lakh million tonnes in this fiscal. Never before could this level be reached. He was speaking at the company's foundation day function on Sunday. The company also undertook exploration of almost 107km in last fiscal. MOIL's production in the last fiscal stands at over 18 million tonnes, and it is confident of meeting the target of 35 million tonnes by 2030, he said. Later, Poundrik said he was confident that MOIL's contribution to the steel sector would go beyond 50%. He said that MOIL's production is expected to even cross 35 million tonnes, touching over 40 million tonnes by 2030.

Economic Times

8 hours ago

• Economic Times

Despite global turmoil, inflation to stay below 4% target: MPC member

Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel New Delhi: A worsening geopolitical situation since the Monetary Policy Committee (MPC) meeting earlier this month has heightened the upside risk to India's inflation trajectory, on account of increases in oil and fertiliser prices , said Ram Singh, a member on the despite the upside risks, he expects the Consumer Price Index (CPI)-based inflation to stay below the 4% target."This (geopolitical situation) can put pressure on the INR, adding to the risk of imported inflation. To address unexpected developments on the external front, we adjusted our stance to neutral. Moreover, our foreign exchange reserves (about $700 billion) provide a significant cushion," Singh told by the World Bank forecast and the S&P commodities index, global commodity prices are expected to remain stable, except for gold and oil, he said."Food inflation is also likely to follow a downward trajectory. All considered, I expect CPI inflation to stay below the target level of 4%," said Singh, who is director of the Delhi School of retail inflation hit a 75-month low of 2.8% in May, driven down by a steep fall in food said the Reserve Bank of India has a range of monetary, liquidity, regulatory and forex market tools at its disposal to maintain macroeconomic and financial stability in an unlikely scenario of a deteriorating geopolitical situation causing stress on the financial market and putting pressure on the June 6, the RBI governor Sanjay Malhotra -headed six-member MPC reduced the lending rate by 50 basis points (bps), taking the total reduction to 100 bps in 2025 so far. It also changed the policy stance to neutral from accommodative.A basis point is a hundredth of a percentage said he did not believe the monetary policy had moved too quickly over the past six months or so, at a time of increasing global uncertainty. "There was a need for a big cut. Demand for mid-size housing and urban consumption remains subdued. Private investment also remains tepid, despite the massive capex undertaken by the Centre. The capex to net surplus from operations ratio remains below the pre-Covid had backed the rate cut, as per the minutes of the MPC released last also pointed out that given the headline inflation forecast of 3.7% for 2025-26, at the current policy rate (6%), the real repo rate turns out to be 2.3%, significantly higher than what would qualify as a growth-supportive to the Covid-19 effect, the average r* (r-star or neutral real interest rate) estimated for India had increased to 1.65% for the fourth quarter of 2023-24 from 1.2% for the third quarter of 2021-22, he said."Now that the Covid-specific factors - elevated public debt and pent-up demand - are behind us, the neutral rate has likely headed toward pre-Covid levels. This gives us scope for a 75 bps rate cut in this cycle," Singh reasoned."Factoring in the global economic and geopolitical uncertainty, a 50-basis-point rate cut in this cycle was reasonable and highly desirable," he said, adding that limited space for rate cuts does not mean that no more rate cuts are possible in this further said, "Having reduced the repo rate by 100 bps, we must carefully assess the macroeconomic situation for additional cuts before proceeding with further cuts, given the elevated risks emerging in the external sector."On the surge in bond yields after the MPC's decision, he said a part of the elevated bond yields for 10-year and longer-duration treasury bonds partly reflect the strong prospects for future GDP (gross domestic product) growth."The overall steepening of the yield curve is also a reflection of the bond market's overreaction to the change in the stance," he said, adding that the bond market would prefer a situation where it can expect more rate cuts. An alternative course would have been a staggered rate cut, but given the subdued credit growth rate and private capex, it would have further delayed the materialisation of demand and investment decisions in anticipation of future cuts."By contrast, a front-loaded 50-bps cut in the policy rate is likely to help achieve the twin objectives of supporting demand and growth by reducing the cost of funds for borrowers," he said, pointing out that since the MPC decision there has been some (about $5 billion) outflows by foreign institutional investors from the bond market, resulting in hardening of yields and steepening of the yield curve."Our rate cut decision is fully justified, coming on the back of strong fundamentals and a stable outlook on the domestic fronts, including fiscal prudence and a benign inflation forecast," Singh said.