August 27, 2013 - GE and XD Electric Group (a Chinese manufacturer of high-voltage equipment) have formed 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 owns 15% of XD Electric and holds one board seat.
"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 modernization solutions," said Dan Janki, president and CEO of GE Energy Management.
Originally announced in May 2012, the partnership expands GE's industry capabilities as a provider of transmission and distribution (T&D) solutions and creates a new global competitor to provide customers with HV technology offerings in what the company refers to as a $100-billion industry.
"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.
Among other things, the partnership aims to provide customers in developed countries with HV solutions to modernize their aging grids with more efficient and reliable electrical power systems. The combined portfolios also will support the rapid electrification and productivity requirements demanded by energy-intensive industries, says GE, like oil and gas, mining and petrochemicals.
