Several global technology giants are vying to capture the fast-growing microgrid market, and now the coming together of two — Hitachi and ABB — could reconfigure the landscape.
Japan-based Hitachi and Switzerland-based ABB finalized a new $11 billion joint venture last week that will become home to ABB’s Grid Edge Solutions, its arm that develops microgrids. The acquisition encompasses all of ABB’s power grids business.
It’s too early to say exactly how the venture — called Hitachi ABB Power Grids — will change what the Grid Edge Solutions division offers, but the companies intend to leverage their respective strengths. In the microgrid realm, that means pairing ABB’s automation technology with Hitachi’s digital platform.
The new entity also strengthens Grid Edge Solutions’ geographic reach and gives it greater access to Japan, home to Hitachi and the third largest economy in the world.
“We see a great opportunity for collaboration across geographies, governments, business and other stakeholders to seize this moment and drive a greener economic recovery by investing in a sustainable energy future, underpinned by modern infrastructure including power grids,” said Maxine Ghavi, senior vice president and head of the Grid Edge Solutions Business at ABB.
How business models or products may change is still unclear because of limits on the ability of the companies to collaborate before the deal closed.
Kid in a candy store stage
But now, Ghavi said, they are entering the “kid-in-a-candy-store” stage as they examine technologies the two companies can bring together and begin discussions with customers about options. “As it relates to the microgrid business — the Grid Edge Solutions business — it really just means more capabilities that we can leverage and bring to our customers.”
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