To begin with, what drew you to the energy sector, and what inspired you to take on leadership roles within Hitachi Energy?

There is no singular factor but a few key ones. The first was aptitude and aspiration. When I started, electrical and electronics as a sector was a budding field that engineers in my generation aspired to. It equipped you to work on nation-building projects, something that was gaining significant pace in the late 80s and early 90s. Bringing power and, with it, opportunities to millions of people, gave you a sense of pride and fulfilment.

What kept me in the energy space was the rapid evolution that began soon after I joined the sector. In my time at ABB, the grid was embracing more and more, and electromechanical relays were being replaced by those with microprocessors, and later India, became one of the first countries to adopt the IE61850 standards.

Subsequently, the energy sector aligned with my beliefs about the environment and our impact on the earth. My role has expanded over the years, this is in part due to the drive to do more but mainly should be attributed to my leaders and mentors, who taught me the ropes and how to harness my potential.

At Hitachi Energy, we are not just working to make infrastructure improvements and encourage the transition to clean energy sources and technologies. We are committed to accelerating progress towards a carbon-neutral energy future.

In less than two years since announcing our goal of reaching Net Zero by 2030, Hitachi Energy has accomplished several significant milestones and one of them is the 100 per cent deployment fossil-free electricity throughout its offices and plants. We have lowered our carbon emissions by more than 88 per cent already through innovative processes and other creative improvements.

Being able to shape our impact – be it economic, environmental or societal – is the true privilege of being in a leading company such as ours. It keeps me committed to helping partners and customers use power effectively and increase industrial productivity sustainably. It also offers me an opportunity to develop projects close to my heart – such as an ecosystem for women in STEM, focusing on underprivileged women students who have talent and enthusiasm in the field. With the help of scholarships, summer camps, soft skills training, and industry experience, this project is expanding.

Hitachi Energy is a prominent player in the energy sector. Could you share some key highlights of the company's operations and its focus in India and South Asia?

Over the years, we have completed several renowned nation-building projects and emerged as a leader in several fields, including HVDC space, which provides millions of people with dependable power.

We are also activating the HVDC link in the Mumbai region, which will help 20 million people in and around the city receive nearly 50 per cent additional power. This initiative will hasten the transition to renewable energy and strengthen the nation's energy infrastructure. By integrating conventional and renewable power sources, the link improves grid resilience and stabilises the power infrastructure. We implemented numerous nation building initiatives, including the historic North-East Agra HVDC connection, which can transmit 6 GW of clean hydropower to demand centres, and solar powered microgrids that power Indonesian islands, which help hasten the country's transition to renewable energy.

With regards to electrification, we are collaborating closely with Indian Railways to electrify all of their trains in keeping with the government's goal of electrification. Currently, our transformers are used by every third Shatabdi and Rajdhani, and we have locally designed transformers to support the Vande Bharat high-speed rail project.

This year, Hitachi Energy has reached a significant milestone in its commitment to Indian Railways. The company has produced (designed, engineered, and manufactured) India's highest power-rated Scott transformers of 100 MVA at its Maneja facility in Vadodara. This marks a significant achievement as the transformers are the first of their kind within the Hitachi Energy group worldwide. Hitachi Energy's Made in India Scott Transformers truly signifies the commitment and innovation that the company brings to the Indian Railways, furthering the country's journey towards a modern, efficient, and sustainable transportation network.

Over the last two years, we have focused on growing our Indian footprint—making in India, for India, and around the world. In just the last two years we have added four new facilities that have introduced essential, pioneering technologies that will be critical in advancing the electrification of energy networks. Today, 80 per cent of Hitachi Energy's portfolio is locally manufactured in India, and the manufacturing base in India also caters to the global requirements of five products. Our global feeder factories have been gaining ground around the world, helping us gradually expand our export markets. Doubling the capacity of power quality manufacturing with the greenfield establishment in Doddaballapur, and the new HVDC factory in Chennai is geared towards such requirements.

In the South Asia region, we undertook several key projects contributing to the energy ecosystems of the respective countries. We have successfully deployed a microgrid in Nusa Penida, Klungkung, Bali (in late 2022). Also, through our high-tech Grid-eMotion® infrastructure used for charging the Brisbane metro. The high-performance charging system is the first of its kind in Australia and will play a key role in supporting the turn-up-and-go Brisbane Metro services. Similarly, Hitachi Energy powered the Red Line mass transit rail system in Greater Bangkok, Thailand, across, which connects suburbs and satellite cities with the new central station and makes trans-city travel easier and cleaner for millions of people.

What are the emerging trends and challenges within the energy industry in India and South Asia, and how is Hitachi Energy positioning itself to address them?

The energy industry in India and South Asia is experiencing significant shifts, with a strong emphasis on renewable energy growth, energy storage solutions, digital transformation, and decentralised energy systems. Challenges such as grid integration and stability, infrastructure development, navigating complex regulatory environments, and minimising environmental impacts are prominent. Hitachi Energy is addressing these trends and challenges through advanced technologies like HVDC systems, battery energy storage, smart grids, and microgrid solutions. Their focus on digital platforms and ecoefficient products further enhance the efficiency and sustainability of energy systems. Hitachi Energy is strategically positioned to support the region's energy transition. By integrating renewable energy efficiently, modernising infrastructure, and ensuring compliance with evolving policies, we contribute to a more resilient and sustainable energy future. With electricity becoming the backbone of the entire energy system, the urgency of the energy transition requires us to collaborate and innovate across stakeholders and sectors. The challenge is much bigger than one individual, company and nation.

We remained committed to innovation and sustainability to reduce carbon footprints and environmental impacts, this makes us a key player in driving the energy industry's transformation in India and South Asia.

Now, it's time to discuss Hitachi Energy's strategic initiatives and plans for growth within the Indian and South Asian markets.

At Hitachi Energy, we have a clear and crucial purpose to advance a sustainable energy future for all. With electricity becoming the backbone of our sustainable energy future, our most important role is to ensure that we have a modern energy system that is fit for this future. In order to deliver a sustainable energy future for all, we focus on three key; parts of the Hitachi Energy 2030 Plan for advancing a sustainable energy future for all.

Strengthening our leadership role in core technologies: with an increased urgency to strengthen, expand and evolve the power grid, we are delivering on our future grid promises and supporting the acceleration of the energy transition. We are pushing the boundaries through innovative technologies such as EconiQ™- ecoefficient portfolio, new business models (product-based to market-driven solutions), and collaborating with customers and partners. These initiatives validate the momentum behind Hitachi Energy's commitment to deliver real customer outcomes and enable a more sustainable, flexible, and secure energy system.

In addition, we are expanding our digital solutions and services, enabling carbon reductions. We are evolving the power system through partnerships and new business models, and innovations/new technologies such as BESS and H2.

What is the current orderbook position (y-o-y comparison) and which are the avenues that have contributed to this orderbook? What is the order backlog?

A strong cyclical revenue performance along with a favourable external environment helped us improve our revenue and bottom line. The focused and proactive approach has helped us achieve better revenue vis-a-vis QoQ and YoY.

In the quarter ended March 31, 2024, orders totalled Rs1406.7 crore, up 13.9 per cent QoQ and 11.5 per cent YoY. Industries led the charge with electrification and digitalisation of energy networks, across sectors from steel to silicon. Contribution from transmission projects followed, with orders from EPCs. Orders for hydro, wind and solar plant operations and integration continued the momentum of the renewable.

Furthermore, service and export orders were up by 43 per cent YoY each, maintaining their strong contribution to the overall order book. Service orders included replacement equipment, Annual Maintenance Contracts (AMCs) and upgrades, as well as innovative solutions like RelCare and RelScan for remote condition monitoring and maintenance. Exports of transformers, power quality technologies and other key products to markets like the Middle East, Southeast Asia and neighbouring countries in South Asia accounted for around 25 per cent of the order book.

Our order backlog stood at Rs 7,229.5 crore, providing revenue visibility for approximately 20 months.

How does Hitachi Energy approach innovation and technology adoption to stay competitive in the rapidly evolving energy landscape?

Firstly, it takes a certain foresight and anticipation to stay relevant for more than a century. Hitachi Energy approaches innovation and technology adoption with a multi-faceted strategy centred on substantial investments in human capital, research and development (R&D), and capability enhancement.

By prioritising these areas, Hitachi Energy ensures it remains at the forefront of the rapidly evolving energy landscape. The company invests heavily in its workforce, fostering a culture of continuous learning and development to equip employees with the latest skills and knowledge. This investment in human capital is crucial for driving innovation and maintaining a competitive edge.

In the region, a key component of Hitachi Energy's innovation strategy is the establishment of Global Technology and Innovation Centres (GTIC). These centers serve as hubs for advanced R&D, bringing together experts from various fields to collaborate on cutting-edge technologies and solutions. The GTIC focuses on areas such as digitalisation, energy storage, grid stability, and renewable energy integration.

By leveraging the collective expertise within these centers, Hitachi Energy can rapidly develop and deploy innovative solutions that address the dynamic needs of the energy industry. This approach not only enhances the company's technological capabilities but also ensures that we can meet the evolving demands of customers and the broader market.

Thus, at Hitachi Energy, there is always a constant endeavour to upgrade its portfolio to strengthen and support the ever-expanding and evolving power system. We will continue to focus on customising our global product portfolio (for local use) and building indigenous capabilities and products. Also, our focus will remain on continuously evaluating the energy and demand landscape and the necessary steps we must take to keep ourselves relevant to deliver cutting-edge solutions to our customers in India and around the world.

Sustainability and renewable energy are increasingly important factors in the energy sector. What is Hitachi Energy's approach to sustainability, and how does it integrate renewable energy solutions into its offerings?

Our sustainability goals are closely aligned with the UN Sustainable Development Goals, adding social, environmental, and economic value. Focusing on People, we place safety at the heart of our operations, foster inclusion and diversity in our workforce, and proudly promote our commitment to integrity and the highest ethical standards working with customers, partners, and suppliers.

Hitachi Energy's approach to sustainability is rooted in its commitment to creating a more sustainable and resilient energy future. Central to this commitment is the 2030 sustainability plan, which outlines ambitious targets for reducing carbon emissions, enhancing energy efficiency, and promoting circular economy principles. This plan aligns with global sustainability goals and demonstrates Hitachi Energy's dedication to environmental stewardship and social responsibility.

To integrate renewable energy solutions into its offerings, Hitachi Energy leverages its advanced technological capabilities and extensive expertise in energy systems. The company provides a range of solutions that facilitate the integration of renewable energy sources, such as high-voltage direct current (HVDC) systems, grid stabilisation technologies, and energy storage systems. These solutions help to efficiently harness and manage renewable energy, ensuring reliable and stable power supply even with the intermittent nature of sources like solar and wind.

Additionally, Hitachi Energy's digital platforms enable real-time monitoring and optimisation of energy systems, further enhancing the integration of renewables. Through these initiatives, Hitachi Energy not only supports the transition to a cleaner energy landscape but also reinforces its role as a leader in sustainable energy solutions.

Can you highlight any notable sustainability projects or initiatives undertaken by Hitachi Energy in India and South Asia?

In 2021, Hitachi Energy announced a comprehensive program to achieve carbon-neutrality targets under our sustainability roadmap for 2030, combining innovative solutions with a diverse and inclusive company culture to contribute to a more sustainable society. As a first step to achieving our goals, Hitachi Energy India has been running factory and office operations on 100 per cent fossil-free electricity since December 2021.

In our customer operations, we have reduced diesel consumption with solutions for rail electrification and eco-efficient alternatives to SF6 for high-voltage products. We have taken several sustainability measures in our other factories including rooftop solar electrification, off-grid solar electrification, replacing diesel with clean piped natural gas and more with a projected reduction of 33 per cent in CO2 emissions in our processes going forward.

The sustainability projects in FY 2023-24 primarily focused on energy and emission, conservation of water and robust waste management. These projects helped us keep track our greenhouse gas (GHG) emissions, energy consumption, usage of freshwater, and waste management.

Similarly, in the South Asia region, we have undertaken various sustainability projects and targets. Like in Vietnam, we have been using clean electricity (from renewable sources) since February 2022 by offsetting our electricity purchases through carbon credits. However, in Australia, environmental protection is one of its top priorities. Environmental Monitoring Reports for applicable facilities are assessed regularly to ensure the operation maintains high levels of environmental performance. We also strive to improve the sustainability of our operations, for example with solar panels in our factories, and focus on improving recycling and circularity.

These are just some of the examples of sustainable projects undertaken by us to lead by example by in energy sustenance in day-to-day operations.

With the growing demand for energy and the need for modernising infrastructure, how does Hitachi Energy contribute to grid modernisation efforts in India and South Asia?

The energy system is amid a fast-paced transformation. Renewables, grid-edge technologies and digitalisation will drive the evolution of future power systems. To keep pace with the energy transition, the existing network must be upgraded and modernised to handle the flexibility required to achieve this.

The future of the grid lies in the adoption of new technologies such as big data analytics for predictive maintenance, artificial intelligence technologies, use of robotics and VR-AR augmented kits for better O&M of transmission networks.

Smart grids offer significant advantages in enhancing the efficiency of electricity transmission while facilitating the integration of renewable energy sources during the ongoing energy transition. Considering the changing energy landscape, there is a need to upgrade the existing grid systems for better functioning and efficiency. The evolving connectivity of resources necessitates a shift in approach. Smart grids bring substantial benefits by improving the efficiency of electricity transmission and seamlessly adapting to the ongoing energy transition.

Establishing standardisation of technology is crucial to ensure cybersecurity, reliability, and safety for both consumers and utilities. Currently, the industry is actively pursuing the development of standards and protocols focused on enhancing cybersecurity measures specifically for smart grids.

Hitachi Energy has been generating synergies by combining digital and energy technologies, contributing to the global energy transition. We will further accelerate the drive for synergies, digitalisation, and service, and we will continue to offer deployment of both IT and operational technology (OT) at scale and with speed. To help our partners and customers in grid optimisation routine-cause-analysis to detect harmonising the effectiveness of the grid.

Hitachi Energy provides mission-critical technology for its customers across various sectors – with products and services being a bridge between generation and consumption. It is enabling renewable energy integration, transmission, management and consumption with technologies that make grids flexible, secure and sustainable, like HVDC Light, EconiQ™, Grid-eMotion®, and IdentiQ™.

What are some of the key challenges faced in implementing grid modernisation projects, and how does Hitachi Energy overcome them?

Grid modernisation projects hold the key to a future powered by renewables and a more efficient energy infrastructure. Each clean GW that we add to the energy system needs to be balanced with an increase in grid capacity and flexibility to meet security, reliability, and resilience. Today, more than 3,000 GW (world over) of renewable generation capacity are in grid queues, and half of these projects are in advanced stages of development. This challenge holds for both advanced economies and emerging and developing countries.

Integrating renewables will be a challenge keeping in mind their variability and unpredictability. Grids need to adapt to these fluctuations to maintain a stable power supply. Upgrading the existing infrastructure is a big ask, as ageing transmission and distribution lines suffer from significant energy losses. Modernisation requires replacing them with smarter technologies, which can be expensive. Also, the smart grids rely heavily on digital infrastructure, making them vulnerable to cyberattacks.

Furthermore, on the financial side, the total operational cost for modernising projects requires significant investments in new technologies, grid upgrades, and data management systems. And the complexity involved in cost allocation and recovery in terms of who bears the cost and how to recover the cost especially when we are talking about intra – regional grid. These are some of the elements which pose challenges to the grid modernisation.

At Hitachi Energy, we support our partners and customers through our technologies and services – from transformers, high voltage switchgear, grid integration, grid automation, power quality and HVDC solutions. We partner with customers to expand and modernise the grid to make it reliable, sustainable, and cost effective.

Hitachi Energy effectively harnesses its technological prowess and strong research and development capabilities to address this, ensuring the best output with minimum cost escalation.

How does the regulatory environment in India and South Asia influence Hitachi Energy's operations and strategic decisions?

The journey to net zero ambition is long and arduous, and every country has its own set goals and is at different stages in its journey of energy transition. Hence, we have to recognise that several countries may not be at the same stage of the journey. Despite being at different stages of their journey, none of the countries are immune to the impending climate change.

Within this framework, we have witnessed some remarkable strides – from the percolation of EVs to public transport in Australia, to the hydropower+BESS project in the Philippines; from microgrids in the Indonesian Archipelago to India's 500 GW renewable ambitions.

At Hitachi Energy, we believe in adapting and adopting policies and regulations that enable the deployment of technology and facilitate new business models to support secure (strong), sustainable (green) and scalable (smart) energy infrastructure.

Are there any regulatory or policy changes that you anticipate will impact the energy sector soon?

The energy sector is on the cusp of transformation across regions. Governments across the world are continuously contemplating introducing policies which will expedite the journey of energy transition toward a sustainable, cleaner energy ecosystem.

With the rapidly evolving energy ecosystem especially in India, we expect more reforms or policy changes in segments like electric vehicles, energy storage policies, (battery energy storage system), green hydrogen, transmission, and green energy corridor to mention a few.

The government of India intends to have EV sales penetration of 30 per cent for private cars, 70 per cent for commercial vehicles, 40 per cent for buses, and 80 per cent for two and three-wheelers by 2030. Furthermore, electric vehicles are spearheading India's last-mile connectivity efforts and bolstering the nation's economic development to ensure connectivity with rural areas. Hence, one expects policy reforms to see more traction in the segment.

Similarly, as per the National Electricity Plan (NEP) 2023 of the Central Electricity Authority (CEA), the energy storage capacity requirement is projected to be 82.37 GWh (47.65 GWh from PSP and 34.72 GWh from BESS) in the year 2026-27. This requirement is further expected to increase to 411.4 GWh (175.18 GWh from PSP and 236.22 GWh from BESS) in the year 2031-32.

Also, if you see, the National Green Hydrogen Mission launched (January 2023) with an outlay of Rs 19,744 crore intending to make India a global hub for the production, utilisation and export of green hydrogen and its derivatives. The same will have a positive green hydrogen ecosystem in the country.

These are just a few examples of policy reforms which will positively influence the energy sector soon. As we have said the energy sector is very dynamic, and we will not be surprised to see various other reforms to address growing energy needs.

What are some of the key factors that you believe will shape the future of the energy industry in the region, and how is Hitachi Energy preparing for them considering its expansion plans in India? What kind of investment we are looking?

The urgency toward energy transition through clean energy sources will shape the future of energy across the globe to reach the net zero target. Thus, things like seamless integration of renewables, battery storage systems, digitalisation, and smart grids are some of the key factors which will influence the future energy ecosystem.

Hitachi Energy is at the centre of the energy transition and well positioned to help accelerate these fundamental changes with the purpose-driven growth encompassed in our ‘2030 plan'. In this plan, we will continue to deliver the record high order backlog in line with customer and partner commitments, hence securing and accelerating earnings and cash growth. Secondly, our focus will be on growing digital and services, expanding at the edge of the energy system. Last but not least, we will continue to drive innovation, and synergies with customers and Hitachi Group companies, and find new partnerships to accelerate growth.

While we already have the technologies to support energy transition and consequent high growth segments – HVDC, PQ, data centres, e-mobility – there will be a need for product evolution, such as EconiQ, OceaniQ, etc. Fundamental technology areas for the power system evolution (potential scope for investment in short to medium term) – Sustainable products (like EconiQ), digitalisation (IdentiQ) and power electronics.

In the last two years in India, we have invested in four new facilities and one global technology and innovation centre. We are constantly evaluating the need, and bringing our centuries of expertise for some foresight, and on average, if you see – we have maintained an average annual capex of Rs 100 crore.

Apart from factories, we are investing in people and technologies. We are readying the future talent pool for the energy sector. We believe that Diversity + Collaboration = Great Innovation. So, we will continue to invest in our talent, technology and infrastructure to build a diverse base for tomorrow's energy systems and expand and diversify our world-class manufacturing base in India.