GE and XD Electric Group announced the formation of a global partnership combining GE’s grid automation capabilities and global energy presence with XD Electric’s portfolio of high-voltage (HV) power equipment. GE now owns 15% of XD Electric, a manufacturer of transmission and distribution equipment, and holds one board seat.
Originally announced in May 2012, the partnership expands GE’s capabilities as a provider of transmission and distribution (T&D) solutions and creates a new global competitor with state-of-the-art HV technology offerings in a $100 billion industry.
Through the partnership, GE and XD will offer end-to-end T&D solutions to meet the growing demand for electricity in emerging economies where demographic and urbanization trends are straining the current grid infrastructure; as well as provide customers in developed countries with HV solutions to modernize their aging grids. The combined portfolios also will support the rapid electrification and productivity requirements demanded by energy-intensive industries like oil and gas, mining and petrochemicals.
“With the world’s electricity demand expected to increase by more than 70% by 2035 and global grid modernization investments expected to grow by 10% 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, in the release. “This is a growth trend we are prepared to support with leading-edge T&D systems including HV transformers, HV breakers, gas-insulated switchgear and other HV technologies.”