29 April 2024

Alfen resumes supply of Pacto transformer substations

The Netherlands, 29 April 2024 – Alfen, a specialist in energy solutions, and Dutch grid operator Liander announce today that they have agreed on a new production method to avert moisture in the Pacto substation. Furthermore, supply of Pacto transformer substations by Alfen has been resumed since mid-April by reworking produced substations that had not been installed yet.

New production method and production resumed

Alfen’s highest priority has been to develop and implement a new production method to avert moisture and restart supply of new Pacto substations to Liander. Liander approved Alfen’s new production method mid-April. Alfen has resumed production with Liander beginning to receive supply in May based on this new production method. Alfen expects to scale up production throughout 2024 to catch up on delays from the first half of the year. As production resumes to normal levels, Alfen and Liander will continue to monitor the reliability of Pacto substations.

Intermediate solution to resume supply

In order to continue to supply Liander with transformer substations in April and May, the stations already produced, which have not yet been installed, will be technically adapted and supplemented with a set of strict measures and controls. With these measures these stations meet the quality requirements set by Liander and can be put into use at the end of April.

“We value our collaboration with Liander,” said Marco Roeleveld, CEO of Alfen. “Our number one priority has been to work together to implement improvements and restart supply as soon as possible to help Liander strengthen the Dutch electricity grid and connect more homes and businesses. The situation is now under control.”

Focus broadened to substations in operation

Alfen and Liander will now extend its focus to inspect the installed substations that Alfen has delivered to Liander since January 2023. Based on the outcome of a number of inspections in the past several weeks, it may be necessary to perform repair work in line with the measures Alfen will implement for the intermediate solution. 

Impact for Liander’s customers

Customers affected by delays in the delivery of transformer substations are proactively informed by Liander about what it means for them. To avoid further delays, adapted substations are installed and, if possible, substations from other manufacturers are used. By mid-June, Liander can resume the installation of Alfen transformer stations according to the regular schedule. In parallel, additional substations will be installed to catch up on the backlog as quickly as possible.

Alfen’s estimate on financial impact for Alfen

The temporary production stop of Pacto substations for Liander and subsequent ramp-up of production will not have impact on the 20% revenue growth objective for Alfen’s business line Smart Grid Solutions in 2024. In addition, Alfen’s estimate is that the total cost impact will be around 5 million euro. The scope of this estimate includes the adjusted production method, the intermediate solution for produced substations that have not been installed yet and possible rework on operational substations in the field.