Europe on the Move: A Conversation with Hitachi Energy’s CEO

Why It Matters

A unified, faster‑moving European grid strategy, backed by technology and partnership, is essential for maintaining economic competitiveness while meeting climate targets.

Key Takeaways

• Energy security, affordability, sustainability form Europe's unstable trilemma.
• Hitachi Energy invests heavily in HVDC grids to lower costs.
• Faster, unified European grid strategy needed to reduce bureaucracy.
• Partnerships shift from transactional to collaborative, enhancing service value.
• Workforce and AI innovations critical for modernizing complex power systems.

Summary

In a candid interview, Hitachi Energy chief Andreas Schierenbeck framed Europe’s energy transition as an "unstable trilemma" of security, affordability and decarbonisation. He argued that cheap, reliable power is the foundation of economic competitiveness, yet the continent’s fragmented grid and reliance on single‑source supplies leave it vulnerable. Schierenbeck highlighted three priority levers: a single, Europe‑wide strategy for sourcing and grid design; massive investment in high‑voltage direct‑current (HVDC) links that cut congestion and lower market prices; and a cultural shift toward faster decision‑making, cutting red‑tape that stalls projects. Hitachi Energy is committing record capital, hiring over 5,000 engineers annually, and leveraging AI‑driven software to manage increasingly decentralized generation. Concrete examples underscored his points. Recent UK offshore‑wind auctions showed HVDC‑connected farms delivering record‑low prices, while the company’s new service‑oriented contracts replace traditional equipment sales, reflecting a move from transactional to partnership models. Schierenbeck also noted that the company’s global Hitachi backing provides financing and cross‑industry tech synergies, from rail to digital solutions. The broader implication is clear: Europe must accelerate grid integration, embrace collaborative procurement, and invest in talent and digital tools or risk falling behind in both cost competitiveness and climate goals. The stakes extend beyond utilities to every sector dependent on stable, affordable electricity.

Original Description

In this first episode of Europe on the move, McKinsey senior partner, Lorenzo Moavero Milanesi, speaks with Andreas Schierenbeck, CEO of Hitachi Energy, one of the world’s largest suppliers of grid infrastructure and high-voltage direct current technology, with operations across more than 140 countries. They discuss why energy has become a strategic priority for Europe and why today’s decisions will shape resilience for decades to come.

The conversation examines the limits of the “energy trilemma” of affordability, security, and sustainability, highlighting that there are no permanent solutions—only ongoing trade‑offs. Andreas explains why Europe needs a unified energy strategy, faster execution, and a fundamentally new approach to grid planning and interconnectivity.

They make the case for a unified European energy strategy, explains why grid investment reduces costs rather than adding to them, and is direct about where Europe is falling behind: a pipeline of engineering talent that is not keeping pace with demand, under-investment in interconnection and bureaucratic timelines measured in years.

This episode is for leaders who understand the urgency of the European competitiveness debate and want to know what execution requires.

Europe on the move is McKinsey's flagship podcast series on European competitiveness. For more insights, visit https://www.mckinsey.com/europe

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