Leveraging the power of digitalisation

Although power demand has started to recover, the financial stress the pandemic brought upon the power sector requires a renewed focus, opines N Venu, Managing Director, Hitachi ABB Power Grids in India. He observed: “In 2021, we see tremendous untapped potential in sectors like e-mobility, renewable integration, power quality, rail electrification, smart cities, data centres and more.”

Recent performance of the power sector in India
These have been unusual times. The pandemic hurt electricity demand, affecting the revenues of DISCOMs, which in turn impaired the pay to upstream providers. This impacted the complete value chain. The industry has seen delayed decision making in award of projects or cancellation of few projects by utilities. All this happened while the power industry was amid a transition. But thanks to the accelerated adoption of digital technologies and partnerships, we could operate as essential services.

Also, the government allocated Rs 22,000 crore for power, renewable energy sector and discom reforms in the budget. About Rs 1.7 lakh crore were promised toward transport infrastructure. A solid push is being given for localisation in the power sector and incentives provided for solar parks, e-bus manufacturing and more. We are now seeing power demand has started to recover and we must brace ourselves for the new normal.

Future of Indian power sector in 2021
Although power demand has started to recover, the financial stress the pandemic brought upon the power sector requires a renewed focus and commitment to reforms that are not only well thought out but also implemented at an accelerated pace.

In 2021, we see tremendous untapped potential in sectors like e-mobility, renewable integration, power quality, rail electrification, smart cities, data centres and more. Also, there is significant potential to enable customers in the power value chain – in industry, utilities, transport and infrastructure segments – to scale-up and accelerate digitalisation.

There is enormous scope for expansion of e-mobility in India. However, the adoption of EVs necessitates grid modernisation to support the changing consumption patterns. So, first, we will need to operationalise a nationwide network of accessible charging infrastructure. Second, modernise the grid through intelligent digital solutions that can help us handle and sustain our energy revolution with much more ease and confidence.

Recent breakthrough policy decision that will drive electrical equipment industry growth in India

Growth drivers for Hitachi ABB Power Grids beyond 2020
As Hitachi ABB Power Grids, we see scope for expansion in sectors like mobility (e.g. electrification of railways and buses), industry (e.g. energy management and asset optimization), smart life (e.g. smart cities, energy storage), and IT (e.g. software solutions and data centers) – all contributing to social innovation. We believe that there is significant potential to enable customers to scale-up and accelerate digitalization. By leveraging capabilities in digital and energy platforms and with a focus on intelligent grids, we enable customers to increase resilience and efficiency, and unlock new business models.

Company’s key priorities and growth plans for India
Our immediate priorities are to protect our people, preserve business continuity and prepare for the new norm. As normalcy returns, we see ourselves expanding in some strategically selected high-growth segments, namely renewables, green energy corridor transmission, rail electrification and metro, data centers, grid digitalization, smart sector integration (e-mobility), among others. We aim to grow faster than the market, investing in building the right talent pool for the power sector.

How Hitachi ABB Power Grids is turning the tide in its favour despite challenges
We amplified customer engagement through technology, leveraging the power of digitalisation. We de-risked our factory acceptance tests, product service and training, and even commissioning of certain projects to maintain business continuity. Many of our customers were concerned about how they would test our equipment before delivery and meet project timelines without coming to the factory. As you know, we are in the business of providing mission critical technology to our customers, delays in delivery or product faults can cost heavily to all stakeholders. We offered the option of conducting the tests remotely which even in times of crisis assured customers of on-time delivery, equipment reliability and quality.

As normalcy returns, we see ourselves expanding in some strategically selected high-growth segments, namely renewables, green energy corridor transmission, rail electrification and metro, data centers, grid digitalisation, smart sector integration, among others.
N Venu, Managing Director, Hitachi ABB Power Grids in India