- Hitachi Energy has acquired a controlling stake in eks Energy, a Seville, Spain-based provider of power electronics and energy management solutions for storage and renewables, from energy storage company Powin, the companies announced last week.
- The deal is part of a broader partnership between Powin and Hitachi Energy as they work on joint marketing activities. This also includes incorporating eks Energy’s technology into Powin’s product roadmap and Powin’s batteries into Hitachi’s solutions.
- Global energy storage deployments are on track to hit 42 GW/99 GWh in 2023, an October report from BloombergNEF found. The market is expected to see a 27% compound annual growth rate through 2030, with annual additions touching 110 GW/372 GWh.
Multiple factors are driving up the global demand for battery energy storage systems, including the move to electrify different sectors of the economy. But by far the main driver is renewable integration, a spokesperson for Hitachi Energy said, since battery storage is ideal for addressing volatility with renewables, especially solar generation.
In this context, bringing together eks Energy’s power electronics and advanced control capabilities with Hitachi’s automation, software and system integration solutions makes a lot of sense, according to Hitachi.
“It means that together we are able to address the spectrum of customer needs,” the Hitachi Energy spokesperson said.
The goal of the partnership is to combine Hitachi Energy’s vast global resources with eks Energy’s product innovation and Powin’s battery storage expertise to bring new products to market faster, Anthony Carroll, Powin’s president, said in an email.
Under the companies’ new deal, Powin will still hold a significant minority ownership in eks Energy and will remain involved in its marketing activities and product development.
The market has made it clear that it needs energy solutions powered by best-in-class power electronics integrated with control and digital capabilities, Massimo Danieli, managing director of the Hitachi Energy Grid Automation Business Unit, said in a statement.
Supply chain issues continue to impact the sector, according to Carroll.
“Energy storage demand is continuing to rise and projects need to be rapidly developed in order to support emissions reduction targets, but we need to strengthen and expand the domestic supply chain to meet that demand,” Carroll said.
Policymakers can address the challenge by continuing to allocate funding toward expanding U.S. production facilities, as well as research and development around new battery technologies, Carroll said.
“Fortunately we are seeing some progress in this arena,” such as the DOE’s $3.5 billion investment into the Grid Resilience and Innovation Partnerships program, which will add 35 GW of renewable energy to the grid while investing in major battery energy storage projects across the nation, Carroll added.