Madam Chair and honourable members, thank you for the invitation.
It's an honour to be with you all today.
Hitachi Energy is a global leader in power grid technology. In Canada, we design, engineer, manufacture and deliver the critical systems that enable electricity to move safely, reliably and efficiently, from high-voltage equipment and transformers to grid automation and system integration.
For generations, Hitachi Energy has helped build Canada's electricity grid. Today, we are strengthening Canadian transformer manufacturing to power the country's next chapter.
We operate across the full electricity value chain, supporting transmission systems, interprovincial grids, industrial electrification and the integration of new power generation.
For over 100 years, we have been part of the industrial backbone that enables Canada's electricity system to function and continue to grow. As the federal national electricity strategy points out, Canada is entering a decisive decade. Electricity demand is expected to at least double by 2050, driven by electrification, AI and industrial growth. Meeting this demand will require over $1 trillion in electricity infrastructure investments. That is not only an energy challenge but a nation-building opportunity that is aligned with the government's priorities of economic growth, productivity and Canadian competitiveness.
At Hitachi Energy, we are investing directly in Canada's energy future. In Varennes, we announced in 2025 an additional $270-million investment to expand our large power manufacturing facility for transformers, building on a prior $140-million investment in 2024. This project will nearly triple production capacity and create approximately 500 high-quality jobs, strengthening both regional economic development and Canada's position as a global clean energy manufacturing hub.
With the right policy conditions in place, there is a clear pathway for additional investments to be made in Canada, and we continue to expand grid infrastructure and manufacturing capacity. More broadly, projects like these, alongside other clean industrial initiatives, represent billions of dollars in investment, but their success ultimately depends on one thing: access to reliable, scalable and modern grid infrastructure.
Therefore, I'm offering four recommendations for budget 2026.
First, prioritize a made-in-Canada grid supply chain. Global demand for grid components is surging, leading to longer lead times and increased costs. Transforming Canada into a competitive manufacturing hub for critical grid technologies will strengthen supply chain security, create jobs locally and support regional economic development.
Second, strengthen grid planning capabilities to support future system needs. Leveraging global expertise and Canadian experience, Hitachi Energy stands ready to support utilities and governments alike in assessing options, de-risking investments and designing solutions that are aligned with priorities. Our recent investment in an HVDC simulation centre right here in Canada—one of only three globally—will provide a unique platform for customers to test and simulate system scenarios.
Third, pair investment with regulatory certainty and workforce development. Faster and more predictable permitting processes are essential to ensuring that projects are delivered on time and on budget. At the same time, targeted investments in skills and workforce capacity will ensure that Canada can execute at the scale required.
Finally, expand clean economy investment tax credits. Critical grid technologies and equipment manufacturing are excluded from ITC eligibility, creating a gap as Canada must expand its grid rapidly. This misaligns the ITC framework. For example, transformers qualify under the clean electricity ITC when deployed by utilities, but their manufacturing does not qualify under the clean technology manufacturing ITC. We incentivize use but not domestic production. Including transformer manufacturing would restore alignment, support developers and manufacturers and strengthen Canada's supply chain. Without this change we risk relying further on imports, undermining our competitiveness and energy security.
In conclusion, the path forward is clear: invest in the network, build it here and do it faster. Hitachi Energy Canada is ready to contribute to these objectives given our long-standing presence in the country, as well as our domestic processing capacity and our global expertise in network technology.
Thank you.