ABB Ltd. (ABB) will be providing an ultrahigh-voltage transmission system, valued approximately at $900 million, for the transmission of hydropower from northeastern Indiato the city of Agra. The link covers a distance of more than 1,728 kilometers.
The contract has been given by Power Grid Corporation of India Ltd. (PGCIL) for its North-East Agratransmission project, with plans to build a multi-terminal ultrahigh-voltage direct current system with a record 8,000 MW capacity. The Indian government’s power company BHEL (Bharat Heavy Electricals Limited) has also been chosen to work on this project. BHEL’s provision to the project is valued at $1.1 billion.
The usage of ultrahigh-voltage transmission system will substantially reduce transmission losses and improve its efficiency. The North-East Agratransmission system will be the first ultrahigh-voltage direct current (UHVDC) link with three converter stations and will supply electricity to approximately 90 million people of the region.
ABB has a leading expertise in HVDC technology. The first multi-terminal HVDC link was built by ABB in North Americain 1990-92 and the second one will be built in India.
The emerging markets have significantly benefited the company and are expected to be a major driver for growth. With the increasing rate of industrialization in these regions, demand for energy efficient solutions like electrical grids and productivity enhancing means is on the rise. In 2011, the company expects to benefit from the emerging markets as well as in other regions, aiding its customers to construct and improve power infrastructure and enhance industrial efficiency and productivity.
ABB Ltd.’s power and automation technologies offer a solution for sustainable development, thus helping to shield the world’s resources. The company has a number of technologies for the solar power industry and also a growing installed base. ABB Ltd has witnessed improving signs in late-cycle power, with some recent large contracts.
However, ABB’s results are likely to be adversely affected by macroeconomic weakness as more than 80% of its orders are derived from outside the US. A major competitor of ABB Ltd. is Siemens AG (SI).
ABB Ltd. is a Zurich(Switzerland) based power and automation technology company. The company operates in approximately 100 countries, structuring its global organization into five regions: Europe, Americas, Asia, the Middle Eastand Africa.
We maintain a Zacks #2 Rank (short-term Buy recommendation) on ABB Ltd.
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