GE and China-based XD Electric Group have announced officially the formation of a new global partnership combining GE's grid automation capabilities and global energy presence with XD Electric's portfolio of high-voltage power equipment. GE currently owns 15 % of XD Electric. The partnership will form a joint venture with XD to offer GE's localised grid automation equipment and services to customers in China.
The partnership will expand GE's capabilities as a provider of transmission and distribution solutions and is anticipated to create a new global competitor to provide customers with HV technology offerings in a $100 billion industry.
GE and XD intend to offer end-to-end T&D solutions to meet the growing demand for electricity in emerging economies where demographic and urbanisation trends are straining the current grid infrastructure, and offer customers in developed countries HV solutions to modernise ageing grids.
"Our investment in XD Electric is core to our long-term strategy to build a world-class T&D franchise and become a leading provider of grid modernisation solutions. By combining the strengths of GE and XD Electric, we will offer full-scope solutions to customers in the rapidly growing T&D industry," said Dan Janki, president and CEO of GE Energy Management. "The partnership will enhance our ability to compete in fast-growing regions such as China where XD Electric has a strong presence."
Much of the T&D growth is expected to continue to occur in China, which has been investing heavily over the past decade in T&D technology and infrastructure. China represents approximately a quarter of the industry's projected global expansion.
"With the world's electricity demand expected to increase by more than 70 percent by 2035 and global grid modernization investments expected to grow by 10 percent over the next five years, we are better able to help utilities and industrial customers upgrade and expand their electrical infrastructure," said John Lavelle, president and CEO of GE's Digital Energy business
Linkedin
