US utility company AEP to receive $86 mln worth of transformers from Hyundai Electric

By Kim Joo-heon Posted : January 31, 2023, 16:23 Updated : February 3, 2023, 15:27

[Courtesy of Hyundai Electric]

SEOUL -- Hyundai Electric, a domestic electrical equipment manufacturer and energy solution provider, has clinched an order worth 106.2 billion won ($86 million) to supply transformers to American Electric Power (AEP), a U.S.-based electricity utility company that oversees power distribution in 11 states. A total of 3,500 transformers crucial in power grids for residential areas will be provided to the U.S. company with some 5 million customers.
Data cited by Hyundai Electric showed that the U.S. is one of the world's largest transformer markets with high demand for distribution transformers capable of changing the high voltage to a normal voltage for power distribution. More than one million distribution transformers are sold every year in the country. Hyundai Electric said the transformer market has gained momentum thanks to the Infrastructure Investment and Jobs Act (IIJA), a $1.2 trillion federal project to repair industrial infrastructure including roads, bridges and airports, as well as reducing carbon emissions.   
Hyundai Electric said in a statement on January 31 that 3,500 pad-mounted transformers provided to American Electric Power will be installed in several states. "As the trend of renewable energy conversion is gaining momentum all over the world, the power distribution transformer market will continue to grow," an unnamed Hyundai Electric official said.
In September 2022, the South Korean electrical equipment manufacturer has also sealed an order worth 47.4 billion won to supply transformers to National Grid, a London-based electricity and gas utility company. The transformers will be installed at five substations starting in 2024. The company said Britain's demand for electricity has significantly increased due to an unprecedented heat wave. However, the European country has suffered from disruptions in electricity production because of its low power generation utilization rate.
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