ABB Ltd.’s (ABB) high-voltage direct current (HVDC) technology has been employed in Italy’s Sapei interconnection, the world’s deepest undersea power cables for transmission of electricity. The transmission link has been built by Terna SpA, a power transmission operator, 1,640 meters below the surface of the Tyrrhenian Sea.
With a voltage rating of 500 kilovolts (kV), highest to be used in Italy’s transmission system, the interconnection improves transmission efficiency. High-voltage converter stations at both the ends of the link, one at Fiume Santo on Sardinia and the other at Latina on the Italian mainland near Rome, have been designed and constructed by ABB.
The link provides Terna flexibility and alternatives to manage power transmission network in central Italy. It also helps in overcoming hindrances in transmission of power between Sardinia and the Italian mainland.
In Italy, Sapei is the third HVDC link delivered by ABB. The technology from ABB will help the government achieve its goal to provide 25% of the country’s energy from renewables by 2020.
ABB Ltd.’s power and automation technologies offer a solution for sustainable development, thus shielding the world’s resources. The company offers a number of technologies for the solar power industry with 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 based power and automation technology company. The company operates in approximately 100 countries, structuring its global organization in five regions: Europe, Americas, Asia, the Middle East and Africa.
We maintain a Zacks #2 Rank (short-term Buy recommendation) on ABB Ltd.
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