ABB Ltd. (ABB) received a power solution supply contract worth $90 million from the American Transmission Co. (ATC). The solutions from ABB will control the flow of power and will develop grid stability in the State of Michigan, US.
HVDC Light (high-voltage direct current) technology is a low-loss and environmental friendly technique of ABB. The technique will control the Power flow between the Upper and Lower Peninsulas of Michigan. The dynamic voltage support of the HVDC Light tech will increase regional grid reliability and will also help in the integration of additional wind generation. The link is expected to start its operation in mid-2014.
ABB Ltd.’s scope of work also involves design, supply and installation of a 200 megawatt (MW) back-to-back HVDC Light station in Upper Michigan. The converter operates like a STATCOM (static synchronous compensator) regulating device when maintenance work is going on or any other case in which one of the converters is not working, thus maintaining the continuity of dynamic voltage support to the network.
ABB maintains a positive long-term outlook. Rising investment in grid upgrades and industries spending more on automation solutions to increase energy efficiency and productivity are the benefactors for the company. However, short-term uncertainties prevail with the continuing macroeconomic volatility.
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 East and Africa. A major competitor of ABB Ltd. is Siemens AG (SI).
We maintain a Zacks #4 Rank (short-term Sell recommendation) on ABB Ltd.
To read this article on Zacks.com click here.
Zacks Investment Research
