< Previouswith the broader vision of Xylem. We believe that effective service delivery necessitates a local presence, ensuring prompt and tailored solutions for our customers. The establishment of service centres in strategic locations highlights our commitment to being on the ground, ready to address the unique needs of each region. Furthermore, the acquisition of Evoqua and the introduction of the Integrated Solutions and Services (ISS) segment reaffirm our dedication to assisting customers in deploying technology in the most efficient and cost-effective manner possible to guarantee returns on investment. ISS reflects our commitment to providing comprehensive solutions that go beyond products, addressing the entire lifecycle of technology deployment. Looking ahead, our strategic roadmap for the next five to ten years is distinctly centred on fortifying our own service capabilities. This approach not only enhances our ability to deliver value to customers but also reinforces our commitment to local engagement, ensuring that our services are not only effective but also aligned with the affordability requirements of the regions we serve. Xylem is prioritising innovation within its products to address global water challenges Pietro Moro, Managing Director for the Middle East and Türkiye, Xylem key regions. To this end, we are actively investing in the expansion of service centres, with recent additions in Saudi Arabia and Turkey. Our dedicated focus on service aligns well “Our ultimate goal is to benefit communities, as they are the true recipients of improved water management practices” Aligned with the local 2030 or 2040 visions of these regions, we are committed to expanding our footprint in a manner that not only captures emerging opportunities but also contributes to addressing pressing challenges. Our approach involves a nuanced understanding of the specific needs and goals outlined in these regional visions, ensuring that our expansion efforts align seamlessly with the broader socio- economic objectives of the respective areas. Acquisitions represent a strategic avenue for growth in this context. By strategically acquiring entities that complement our goals and values, we position ourselves to better serve the evolving needs of the region. How do the recent expansions in service centres, particularly in Saudi Arabia and Turkey, align with Xylem’s commitment to fortify service capabilities and ensure local engagement? Our strategic focus is centred on optimising the utilisation of our existing networks, with a significant emphasis on enhancing our service offerings. Recognising the intrinsic nature of service provision as a localised effort, we are committed to establishing a robust presence in 20 January 2024 www.utilities-me.com INDUSTRY TRENDSFOR COMMERCIAL ENQUIRIES: Ines Ben Rejeb Senior Commercial Manager T: +971 4 444 3223 E: ines.benrejeb@itp.com WHERE &NUMBERS NARRATIVES WWW.FINANCEMIDDLEEAST.COM AN ITP MEDIA GROUP PUBLICATION online now and in print this February22 January 2024 www.utilities-me.com COVER STORY 22 January 2024 www.utilities-me.com COVER STORYNET ZERO ENERGY FUTURE Hitachi Energy has highlighted COP28’s significance in steering initiatives to transform the energy sector, aligning with the company’s own commitment to leverage technology and innovation in advancing the world’s energy system to be more sustainable, flexible, and secure www.utilities-me.com January 2024 23 COVER STORY www.utilities-me.com January 2024 23 COVER STORYL ast month’s COP28 event in Dubai further revealed the need for urgent and global action in the face of growing climate change challenges. Several companies have echoed the call for accelerating the clean energy transition, with many, operating in the utilities sector, already taking decisive action. “The clean energy transition is not just a necessity; it is a fundamental part of the urgent actions required to combat climate change globally,” says Claudio Facchin, CEO of Hitachi Energy, the global technology and market leader in power grids. In a conversation with Utilities Middle East on the side-lines of COP28, Facchin highlights the need for adaptable policies and regulations that foster technological advancements and new business models. “We all recognise the key role of electricity as the backbone of this transition. The ultimate goal is to establish sustainable, flexible, and secure energy systems that benefit all,” says Facchin. But for COP28 to have any meaningful impact, Facchin stresses the need to turn commitments into tangible actions, pointing out time as the most precious and finite resource in the race against climate change. He points out the urgency, stressing the importance of accelerating efforts that will eventually translate promised initiatives into meaningful outcomes. “At COP28, our obligation is to systematically decarbonise the global energy infrastructure. The focus is on aligning with targeted milestones for 2030 and 2050, underlining the pressing need to transform commitments into impactful actions,” says Facchin. To address the challenges posed by climate change, Facchin advocates for a concerted and cross-sectoral approach. He says that climate challenges cannot be effectively confronted by working in isolation, calling for increased partnerships while stressing the importance of cultivating an environment that fosters innovation through collaborative business models. “While we have positioned ourselves as leaders in key technological verticals, particularly within the area of grid infrastructure, a linchpin in accelerating the energy transition, it is abundantly clear that success hinges on strategic partnerships,” says Facchin. “The collaboration with partners enables us to channel resources into specialised areas where they excel.” This collaborative synergy is integral to Hitachi Energy’s ability to deliver holistic solutions that cover the full spectrum of technology and innovation, to its customers, utilities, and, ultimately, to the countries and markets that heavily depend on advanced electrical solutions. The future of combating climate change necessitates a collective and collaborative effort, and Hitachi Energy has recognised the significance of aligning its strengths with those of strategic partners to effect transformative change. “Sustainable development is achievable only through partnerships and transparent collaboration across diverse teams, including customers and partners. Hitachi Energy, driven by a sense of urgency, remains committed to advancing a sustainable energy future for all,” says Facchin. COP28, he believes, should mark a crucial COP28 should be a crucial juncture in advancing to the next stage of meaningful progress 24 January 2024 www.utilities-me.com COVER STORYjuncture in advancing to the next stage of meaningful progress. At the core of Hitachi Energy’s mission is a purpose-driven commitment to advancing a sustainable energy future for all. The company serves customers in the utility, industry, and infrastructure sectors with innovative solutions and services across the value chain. Headquartered in Switzerland, Hitachi Energy employs more than 40,000 people in 90 countries and generates business volumes of over $10 billion. “Sustainability and the energy transition are not mere buzzwords for us; they are the heart of our purpose,” notes Facchin. The company’s strategic roadmap is embodied in its “Hitachi Energy 2030 plan,” unveiled in June 2021, outlining concrete commitments for sustainable and profitable growth. Aligned with the United Nations’ Sustainable Development Goals (SDGs), Hitachi Energy’s strategic plan provides a platform for robust collaboration and innovation. With a focus on science-based targets and transformative solutions, the company seeks to reduce carbon emissions in line with the Paris Agreement’s ambitious goal of limiting Hitachi Energy is crucial enabler for large-scale renewable integration and interconnections Claudio Facchin, CEO, Hitachi Energy Ensuring access to affordable, reliable, and sustainable energy for all “While we have positioned ourselves as leaders in key technological domains, it is abundantly clear that success hinges on strategic partnerships” temperature rise to 1.5 degrees Celsius. Facchin goes ahead to point out the various business opportunities available in ensuring access to affordable, reliable, and sustainable energy for all. The key pillars of Hitachi Energy’s 2030 plan include reinforcing power grids, expanding digital technology and lifecycle services, and fostering partnerships to co-create solutions that accelerate the clean energy transition. Facchin positions the strategic prioritisation of technology as central to advancing the energy transition. Highlighting the company’s technological strength, Facchin points to the important role of High Voltage Direct Current (HVDC) systems. Introduced over 60 years ago, these systems have evolved into a crucial enabler for large-scale renewable integration and interconnections. With the latest generation of HVDC Light, Hitachi Energy is spearheading carbon reductions exceeding 30%. Transmission and distribution power grids enable a sustainable energy system through direct and indirect electrification. Power grid expansion and strength are essential to achieve a 100% renewable-based energy system globally. “Our modular prefabricated Grid-eXpand™ solutions allow fast, safe deployment of power infrastructure. Our own distribution transformers can connect and transform voltages across the entire grid, which helps in maximising efficiency,” says Facchin. www.utilities-me.com January 2024 25 COVER STORYIn acknowledging the availability of a multitude of technologies, Facchin says that success lies not in technological scarcity, but in strategic business approaches. But at the same time, fostering innovation, cultivating collaboration across stakeholders, and engaging in partnerships that transcend traditional boundaries are key dynamics not to be ignored. “Hitachi Energy stands at the forefront, ready to shape the future of clean energy through collaborative and innovative efforts,” says Facchin. The high-voltage switchgear, protection, and control offerings, together with the energy management and trading solutions, ensure affordable sustainable power, while HVDC interconnects national and international grids, making them stronger and more flexible. Facchin wants to see a universal commitment to deploying the fullness of all the available technologies, highlighting the need for comprehensive adoption. “The overarching goal is the decarbonisation of the energy system, and success hinges on our collective ability to strategically approach technology from a business perspective,” says Facchin. To fast-track the deployment of clean energy solutions, Facchin advocates for harnessing a diverse array of technologies. “The focus extends beyond generation to the efficient transportation and distribution of clean electricity,” says Facchin. “There is a compelling need to leverage both new and old technologies for the rapid electrification of buildings, transportation, and industrial processes.” The thoughtful alignment between the company’s strategic initiatives and the pursuit of renewable energy is clear. Hitachi Energy’s commitment to advance a sustainable energy future for all resonates across its global operations, where a dedicated workforce of 40,000 professionals engages with customers, collaborates with partners, and interacts with stakeholders and communities. The objective is to cultivate awareness regarding the imperative of sustainable energy practices. “Sustainability is not just an ethos, it’s embedded in our mission,” affirms Facchin. Hitachi Energy actively translates this commitment into action, focusing not only on internal decarbonisation but also on providing sustainable solutions for all its customers regardless of location. Digital technologies play a key role in Hitachi Energy’s clean energy transition efforts, shaping the future energy system Hitachi Energy is helping to address intermittency and variability in clean energy through its solutions “The overarching goal is the decarbonisation of the energy system, and success hinges on our collective ability to strategically approach technology from a business perspective” 26 January 2024 www.utilities-me.com COVER STORYThe company aims to enhance the sustainability of grid assets, ensuring they meet evolving energy demands with a significantly reduced carbon footprint. Digital technologies play a key role in Hitachi Energy’s clean energy transition efforts, shaping the future energy system. Facchin acknowledges the challenges presented by intermittency and variability in clean energy resources and points out the unique role of dynamic and responsive frameworks. “The ongoing evolution of digital technologies serves as the linchpin in addressing these challenges, enhancing the efficiency and resilience of the clean energy landscape” he says. He also expresses optimism about the rapid advancement of these digital solutions, aligning seamlessly with the demands of the future energy system. “Leveraging these capabilities not only helps navigate complexities but also enhances the overall efficiency and resilience of the clean energy landscape,” says Facchin. “In essence, the shift toward a sustainable energy future is intrinsically intertwined with the continued evolution and integration of digital technologies, positioning them at the very core of our efforts for climate equality.” As the pioneering technology leader right at the centre of the clean energy transition, Facchin says that Hitachi Energy has a duty to help accelerate change. “We must constantly challenge ourselves Power grid expansion and strength are essential to achieve a 100% renewable-based energy system Hitachi Energy is advancing the world’s energy system to become more sustainable, flexible, and secure to transform and continuously improve with authentic passion and ownership, and also actively motivate others to do the same,” says Facchin. “We believe that sustainable development is only achievable through partnerships, and that innovation comes from open and transparent collaboration across diverse teams, with customers and partners. We will continue to inject a sense of urgency as we are advancing a sustainable energy future for all.” As Hitachi Energy pledges support for the outcomes of COP28 in Dubai, Facchin stresses Hitachi Energy’s commitment to go beyond technology to cultivate a holistic approach towards climate change action. The company is advancing the world’s energy system to become more sustainable, flexible, and secure while balancing social, environmental, and economic value. Hitachi Energy aims to work with stakeholders, contributing to the transformation of promises and plans into tangible actions. But beyond technical innovation, the company is also looking at its impact on societies and how it can improve lives and inspire others. “Our mission is clear: to expedite and bolster these initiatives,” says Facchin, adding that Hitachi Energy’s commitment extends to facilitating progress in sustainable practices. Looking ahead, Hitachi Energy is eager to see an actual transition from pledges to implementation, which would mark a crucial phase in the collective journey toward a sustainable future. “The time to act collectively is now, and Hitachi Energy remains steadfast in driving positive change,” says Facchin. www.utilities-me.com January 2024 27 COVER STORYFuture-proofing power systems An exclusive interview with Javier Cavada, President and CEO, Mitsubishi Power, Europe, the Middle East and Africa (EMEA), at COP28 UAE, on enabling sustainability to boost resilience in future power generation systems Why is it important, in your view, to implement measures that ensure the resilience and future-proofing of global power systems? Certainly, the profound impact of power generation on global greenhouse gas emissions is a critical aspect that demands our attention. Currently, more than two-thirds of these emissions, which significantly contribute to climate change, stem from power generation activities dedicated to producing electricity. It is important to recognise that, as of 2023, heading into 2024, our reliance on electricity is growing, especially with the electrification of new sectors. This development amplifies the importance of addressing the environmental consequences associated with power generation. The increase in electricity demand, particularly in highly developed countries doubling their requirements and developing countries experiencing a substantial increase in recent years, underscores the urgency in re-evaluating and revolutionising our approaches to electricity production to combat climate change effectively. The International Energy Agency predicts an increase in demand for electricity in the next ten years. How do you intend to strike a balance between meeting this soaring demand and ensuring sustainability? Certainly, behind your question lies the main concern, and that is the need to address the rising demand for energy while navigating the necessity to transition away from carbon- intensive practices. The challenge here is very clear. The substantial surge in demand necessitates a re-evaluation of our energy generation methods. Renewable energy sources such as solar and wind are indispensable, yet their intermittency demands additional stability systems. We must scale up not only renewable energy but also energy storage solutions to balance the grid during fluctuations. This involves embracing various technologies—pumped hydro, batteries, and transformative processes like Power- to-X, producing green hydrogen, ammonia, and sustainable aviation fuels. Urgency is paramount, and deploying these technologies at a global scale is crucial for the decarbonisation journey. In light of evolving demand trends, 28 January 2024 www.utilities-me.com POWER FUTUREparticularly in the area of conventional power generation, how is Mitsubishi Power strategically positioning itself to adapt and meet the current market dynamics? I would like to stress that Mitsubishi Power is not just a conventional electricity company; we are a technology group. Over the past nearly six decades, we have been pioneers in hydrogen technologies, primarily serving industries such as refineries, steel, and chemical factories. Although the demand for these technologies was not initially centred around the electricity sector, our expertise positions us as a crucial player in the current energy transition. Our commitment involves educating authorities, partners, and utilities about the technologies we have developed, aiming to catalyse collaborative efforts to deploy these solutions at scale. Our mission is to contribute significantly to society’s decarbonisation and energy transition goals by accelerating the adoption of renewables. To achieve this, we see the need to triple the deployment of wind and solar energy by the end of this decade, necessitating advancements in hydrogen, ammonia, and “It is important to recognise that, as of 2023, heading into 2024, our reliance on electricity is growing, especially with the electrification of new sectors” energy storage technologies. We believe in fostering partnerships across the industry to collectively drive this transformative change and meet the growing demand for sustainable solutions. In what ways is technology advancing to facilitate the widespread and rapid utilisation of hydrogen at the scale and speed required for your initiatives? Hydrogen, a thoroughly tested and proven molecule, is already in use across multiple projects, including power generation with 100% hydrogen or blended with gas. For instance, in a combined cycle gas turbine, a 30% hydrogen Enabling sustainable energy solutions is possible through collaboration with all stakeholders 100% Hydrogen or blended with gas for power generation blend is equal to removing about 55,000 cars from the road in greenhouse emissions. Moving to 100% hydrogen exponentially increases this impact, equivalent to eliminating close to 1.5 million diesel cars. Our role is to showcase the available technology, offer various roadmaps for decarbonisation, and assist companies in planning their energy transition. Achieving emission reduction goals requires incremental steps, with a roadmap focused on practical achievements by 2030, aligning with the imperative to reduce greenhouse gas emissions by over 40%. How is Mitsubishi Power navigating the intricacies of the hydrogen supply chain to ensure security of supply as the technology gains prominence? The commitment to advancing hydrogen technologies is irreversible, with ongoing deployments signalling its actualisation. Despite significant progress, the pace and scale must increase. As a major technology player, Mitsubishi Power recognises its key role but stresses the need for collective effort. Achieving large scale hydrogen deployments involves collaboration across Irreversible commitment to satisfying growing power needs while supporting the energy transition www.utilities-me.com January 2024 29 POWER FUTURENext >