News | Headlines $1 bn investment in US infrastructure


USA Transmission & distribution Hitachi Energy, a subsidiary of Hitachi Ltd, announced on 4 September what it is characterising as a ‘historic’ investment of more than $1 billion to increase the production of critical electrical grid infrastructure in the USA. These investments, among the largest seen in the electrical industry in the country, include approximately $457 million for a new large power transformer facility in South Boston, Virginia, along with significant expansions of existing facilities throughout the USA. The investments will help to meet fast rising energy demand driven by AI data centres and is in line with the Trump administration’s White House AI Action Plan and can promote domestic access to critical grid technologies. The move also supports the power needs of American manufacturing and other sectors and necessary grid expansion and modernisation efforts. Collectively, these investments are expected to create thousands of jobs, bolster electrical equipment supply chains in the USA,


and contribute to the development of innovative technologies to enhance the security and “Prioritise domestic production of transformers accelerates president Trump’s ‘energy dominance’ agenda by fortifying critical supply chains, strengthen US energy security, and ensuring our nation can meet the growing energy demand” said Jarrod Agen, executive director of the White House National Energy Dominance Council.


“Power transformers are a linchpin technology for a robust and reliable electric grid and winning the AI race. Bringing production of large power transformers to the US is critical to building a strong domestic supply chain for the economy and reducing production bottlenecks, which is essential as demand for these transformers across the economy is surging. Hitachi Energy is uniquely positioned to deliver critical power solutions for the American market,” said Andreas Schierenbeck, CEO of Hitachi Energy. “Our investments in expanding transformer manufacturing capacity – including


at our new South Boston facility – are already creating good-paying American jobs, strengthening local communities, and reinforcing economic independence.” Central to this investment plan is the establishment of a state-of-the-art manufacturing facility in South Boston, Virginia, to produce large power transformers, to be deployed in applications such as high-voltage transmission, power generation, AI data centres, and at large-scale industrial sites. This facility will be built alongside Hitachi Energy’s existing campus and will be the largest manufacturing site for large power transformers in the United States. This facility alone will create more than 825 new jobs in Southside Virginia, offering long-term employment opportunities in engineering, advanced manufacturing, and operations roles. These projects are part of a more than $9 bn USD global investment programme, the largest in the industry, under which Hitachi Energy is expanding its manufacturing capacity.


Sweden inaugurates nation’s largest solar farm Sweden Solar power


Renewable energy producer Neoen and European solar developer Alight have announced the launch of Sweden’s largest solar farm, a 100-megawatt peak (MWp) facility located in Hultsfred. The project, which was connected to the E.ON distribution grid in April, is now delivering clean electricity into the national system.


Developed as a joint venture between Neoen and Alight, the solar farm is expected to generate around 100 GWh annually. The project was financed by Neoen and Alight, supported by structured debt financing from Danske Bank. In addition, Swedish fashion giant H&M Group has signed a long-term


power purchase agreement, pledging to source 95% of the site’s output by 2030. Laetitia Prot, managing director of Neoen Sweden, described the development as a milestone in the country’s green energy expansion. “Hultsfred solar farm is our fourth asset entering into operation in Sweden, bringing the total capacity of the fleet to 304 MW (including Storbränkullen wind farm, Storen Power Reserve and Isbillen Power Reserve). With these three complementary technologies of solar, wind and storage at scale, we are actively contributing to Sweden’s clean energy transition,” she said. The construction phase was managed by Equans Solar & Storage alongside


Solkompaniet. The initiative brought together a range of French and Swedish partners, reflecting international collaboration in renewable energy development.


Neoen’s chairman and CEO, Xavier Barbaro, emphasised the company’s long-term commitment to the region. “Since 2020, we have invested almost €200 million in Sweden … playing an increasingly significant role in accelerating the energy transition here in Sweden and around the world,” he said. The inauguration of Hultsfred solar farm follows Neoen’s launch of Portugal’s largest solar park earlier this summer, highlighting the company’s growing presence in Europe’s renewable energy sector.


The FCA investigates Drax biomass sourcing UK Regulatory


Drax Group has been notified (26 August) that the UK’s Financial Conduct Authority has started an investigation into the company covering the period January 2022 to March 2024 ‘relating to certain historical statements regarding Drax’s biomass sourcing and the compliance of Drax’s 2021, 2022 and 2023 Annual Reports with the Listing Rules and Disclosure Guidance and Transparency Rules’. Drax says it will co-operate with the FCA as part of its investigation. The news saw Drax shares fall by more than 12% on 27 August, later recovering to 9.2%.


The ’historical statements’ refers to biomass sourcing disclosures following last year’s


investigation by the country’s energy regulator, Ofgem. Drax, which supplies about 5% of Britain’s electricity via biomass-converted coal plants and has received billions of pounds in green energy subsidies from the UK government, was fined £25 m ($33.77 million) by Ofgem for misreporting data on wood sourced from forests in Canada. There has been criticism of Drax over sourcing wood from Canadian forests but the company has responded by insisting that it only uses wood residuals or byproducts from trees primarily used for lumber, and that demand for wood from sustainable managed forests can help to increase forest growth.


8 | September 2025 | www.modernpowersystems.com Investigation


The FCA’s investigation covers statements made between January 2022 and March 2024 and includes Drax’s 2021–2023 annual reports and their compliance with financial disclosure rules. However last year’s Ofgem investigation found no evidence of a breach of sustainability obligations by Drax or that it had incorrectly issued renewable obligation certificates. Environmental groups have questioned the sustainability of biomass power plants that generate electricity by burning wood pellets, and this investigation may increase political scrutiny of the UK’s post-2027 biomass support plan, which will halve subsidies for Drax during 2027–2031.


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