Hitachi Energy, (a electrification company), and Ørsted(a renewable energy company), have announced a strategic partnership that will see the Swiss-headquartered energy technology company serve as an integrated end-to-end partner for Ørsted's offshore wind electrical systems, with the agreement aimed at reducing lead times, lowering the levelized cost of energy, and establishing a repeatable delivery model for large-scale offshore wind projects.

The partnership was announced on April 22, 2026, from Zurich, Switzerland, and covers the delivery of integrated onshore and offshore electrical solutions across the full asset lifecycle.

Scope of the Agreement

The partnership between Hitachi Energy and Ørsted centers on delivering integrated electrical systems for offshore wind projects, spanning both onshore and offshore components.

The collaboration is built around four core principles: standardization, modularization, effective tendering, and long-term service. According to the two companies, closer coordination will streamline the planning and delivery of offshore wind electrical systems and generate cost efficiencies for end customers ahead of final investment decisions.

The agreement is structured to cover the full asset lifecycle, meaning Hitachi Energy's role extends beyond initial construction into ongoing operations and maintenance.

This long-term service commitment is positioned as a central element of the partnership, with both companies stating their aim to support reliable operations over the duration of each project.

Addressing Structural Challenges in Offshore Wind

The two companies framed the partnership as a direct response to a set of well-documented structural challenges facing the offshore wind sector. These include long procurement and delivery lead times, increasing project complexity, supply-chain constraints, and rising project costs, all of which have weighed on the economics and predictability of offshore wind development in recent years.

By working more closely across the value chain ahead of final investment decisions, Ørsted and Hitachi Energy said they aim to create a scalable, repeatable, and affordable model for offshore wind project execution that can support more consistent delivery across different markets and over time.

Ørsted's Chief Construction Officer, Patrick Harnett, described the agreement as providing clarity and security of supply. "Long-term agreements like this create clarity and security of supply, and support Ørsted's ambition to reduce the cost of offshore wind," Harnett said, adding that offshore wind plays an increasingly important role in providing secure and affordable energy.

Niklas Persson, Executive Vice President and CEO of Hitachi Energy's Grid Integration Business Unit, pointed to the broader context of accelerating electricity demand as a driver of the partnership's rationale.

"As electricity demand continues to accelerate, the ability to deliver secure, affordable, and reliable power depends increasingly on how projects are planned and executed," Persson said. "Execution models that improve coordination across the value chain and support predictable, end-to-end delivery are becoming essential."

A Deepened Relationship Between Two Industry Leaders

Both companies indicated that this agreement represents a deepening of an existing relationship rather than an entirely new one. Harnett described the deal as partnering with Hitachi Energy "once more," while Persson referred to the "trusted relationship" between the two organizations and characterized the partnership as a demonstration of how end-to-end coordination can support scaling with confidence.

Ørsted is described as the world's leading offshore wind developer. The Danish company has 10.2 gigawatts of installed offshore wind capacity and a further 8.1 gigawatts under construction. Its total installed renewable energy capacity, which spans Europe, Asia Pacific, and North America and includes onshore wind, solar power, energy storage, bioenergy plants, and energy trading, exceeds 18 gigawatts.

Hitachi Energy, headquartered in Switzerland, describes itself as a global technology leader in electrification. The company employs over 50,000 people across 60 countries and generates revenues of around USD 16 billion. Its technologies are used by over three billion people globally, and the company maintains an installed base in over 140 countries spanning the utility, industry, transportation, data center, and infrastructure sectors.

Implications for Offshore Wind Project Economics

The emphasis on reducing the levelized cost of energy sits at the heart of the partnership's stated objectives.

Levelized cost of energy is a widely used measure of the average net present cost of electricity generation over a project's lifetime, and reducing it has become a central challenge for the offshore wind industry as it seeks to remain competitive with other forms of generation while navigating higher financing costs and supply chain pressures.

By locking in an end-to-end partner relationship and focusing on standardization and modularization of electrical systems, Ørsted is seeking to introduce greater predictability into the cost and schedule of its projects.

The structure of the partnership, covering planning, tendering, construction, and long-term service, is designed to reduce the friction points that have historically contributed to cost overruns and delays in offshore wind development.

The two companies said their goal is to make this model scalable and applicable across different markets, suggesting that the framework developed under this agreement could be applied to Ørsted's project pipeline across Europe and beyond as the offshore wind sector continues to grow.

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