ABB Wins Italian Solar Contract – Analyst Blog

ABB Ltd. (ABB) has been awarded a $27 million contract by Gestamp Solar, the solar photovoltaic subsidiary of Gestamp Renewables, to deliver four solar power plants in Sicily, Italy. The project includes design, engineering, supply and commissioning of the power plants and also of the medium-voltage distribution link between the plants and the grid. The motive of the project is to develop a source of clean energy in Sicily.

 

Total planned capacity of the plants is above 17 megawatts (MW). The four plants will be constructed in Duccotto, Francofonte, Monreale and Sapeu. The plant at Duccotto, with a capacity of 7.7 MW, will be the main plant and others will act as a support to the main plant.

 

The plants will be constructed on ABB’s modular eBoP (electrical balance of plant) concept. As per this concept, electrical systems of the plant are assembled and tested prior to the delivery, thus making the installation and commissioning work on the site of the project simpler and faster. This also reduces the costs and risks involved in the project.

 

The project is expected to be completed by the end of 2010. The plants will supply around 27 gigawatt hours of renewable electric power annually after being connected to the grid and will evade 14,000 tons carbon dioxide release per year.

 

The power and automation technologies provided by ABB Ltd. enable utility and industry customers to improve performance, while lowering the environmental impact. The company has a number of technologies for the solar power industry and also a growing installed base. The company has witnessed improving signs in late-cycle power, with some recent large contracts.

 

However, ABB Ltd’s results are likely to be adversely affected by macroeconomic weakness as more than 80% of the company’s orders are derived from outside the US. A major competitor of ABB Ltd. is Siemens AG (SI).

 

Based in Zurich, Switzerland, ABB Ltd. is a power and automation technology company. The company operates in five segments: Power Products and Power Systems supply products and complete Transmission and Distribution (T&D) solutions to utility and industrial customers. Discrete Automation & Motion, Low-Voltage Products and Process Automation supply products, systems and solutions to customers across nearly all segments of the process and manufacturing industries, as well as specialist end markets, such as marine and utility. ABB Ltd operates in approximately 100 countries and structured its global organization into five regions, Europe, the Americas, Asia, the Middle East, and Africa .

 

We have a Zacks Rank of #2 (short-term Buy recommendation) on ABB Ltd.