Power Equipment and Transformer Industry Trends — 2026-08-01

Top Orders

Hyosung Heavy Industries — $300M AusNet Contract

• Equipment/Scope: 45 units of Ultra-High Voltage (UHV) power transformers.
• Delivery/Scale: For grid reinforcement in Victoria, Australia, supporting the renewable energy transition.
• Strategic Significance: A major grid modernization project driven by Australia’s renewable energy expansion. This deal highlights Hyosung’s success in the global high-voltage market and proves the importance of securing long-term contracts amidst supply chain volatility.

1 sources

pv-magazine-australia.com

pv-magazine-australia.com

Delta Electronics — HVDC systems scheduled for Q4 delivery

• Equipment/Scope: HVDC (High Voltage Direct Current) transmission systems.
• Delivery/Scale: Deliveries starting Q4 2026, with full-scale expansion in 2027.
• Strategic Significance: To meet soaring demand from AI data centers and energy infrastructure, the company is increasing CAPEX by 52%, from NT$46.1B (2025) to NT$70B (2026). This reflects a broader industry trend of increased HVDC investment.

1 sources

digitimes.com

digitimes.com

Manufacturer Announcements

Hitachi Energy — Secured Italy-Tunisia HVDC link converter station contract

• Announcement: Providing converter valves, MACH digital control platforms, power transformers, high-voltage switchgear, and systems engineering services for the Italy-Tunisia HVDC link.
• Market Impact: An interconnector project between North Africa and Europe, furthering international standardization of HVDC technology and strengthening Hitachi Energy’s foothold in the Mediterranean.

GE Vernova — Gas turbine backlog hits 116GW; capacity booked through 2031

• Announcement: GE Vernova’s gas turbine backlog has reached 116GW, with new orders being accepted through 2031. Customer segments are diversifying, including data center clients.
• Market Impact: A long-term backlog of over five years signals financial stability and the necessity for capacity expansion. Plans to boost transformer production are underway following the 2024 acquisition of Prolec GE ($5.3B).

Market & Financials

• Siemens Energy: Stock rebounded 8.4% following GE Vernova’s earnings report. Continued industrial strength and ongoing share buybacks signal a recovery in technical trends. Q3 earnings are set for release on August 5.

• GE Vernova: Reported a $176B backlog in Q2 2026. Strength in power and electrification has set a multi-year growth trajectory. As demand for gas turbines extends through 2031, supply chain constraints are expected to intensify.

Grid & HVDC Pipeline

Global HVDC market to expand to $67.6B

• Investment/Timeline: The global HVDC transmission market is projected to reach $67.6B by 2036, driven by long-distance renewable energy transmission, offshore wind development, and grid interconnectivity.
• Beneficiaries: Major OEMs including Siemens Energy, Hitachi Energy, ABB, and GE Vernova, along with HVDC cable manufacturers (the cable market alone is expected to reach $4.6B by 2035).

Supply Chain Watch

Tension in the power transformer supply chain persists. Significant CAPEX increases by major OEMs (Delta up 52%, GE Vernova investing $1B in Prolec GE from 2026-2028) signal efforts to shorten lead times and scale capacity. However, with backlogs exceeding five years, short-term supply shortages are inevitable. Monitoring of electrical steel supply and copper price fluctuations remains essential.

Insights — What to Watch Next

1. Siemens Energy Q3 Results (August 5): All eyes are on whether GE Vernova’s strong backlog and industry demand will be reflected in Siemens Energy's Q3 2026 performance, particularly regarding gas turbine and HVDC orders.

2. HVDC and Data Center Power Demand: Delta Electronics’ upcoming Q4 HVDC deliveries and GE Vernova’s diversifying data center client base confirm that power infrastructure investment is shifting into high gear for AI. Expect intensified competition for orders over the next 2-3 years.

3. Australia/Europe Grid Modernization: Deals like AusNet-Hyosung and the Italy-Tunisia HVDC link are clear signs of the trend toward increased transmission investment. Tracking similar project biddings in North America, Europe, and APAC is critical.

Action Items for Readers

• Investment Perspective: Track order momentum for GE Vernova (116GW backlog), Siemens Energy, and Hitachi Energy to gauge the five-year growth outlook for the power equipment sector. Companies significantly increasing 2026 CAPEX are well-positioned for performance gains in 2027-2028.

• Monitoring Targets: Keep an eye on South Korean players: Hyosung Heavy Industries’ overseas orders, HD Hyundai Electric’s progress toward its 2026 $5.185B order target, and the competitiveness of LS ELECTRIC in HVDC and switchgear.

• Deep Dive: Study the "Triple Driver" mechanism: Renewable Energy - Grid Modernization - Data Center Power Infrastructure. It is also recommended to analyze supply chain bottlenecks in HVDC technology and transformer materials (electrical steel and insulating oil).