ABB Ltd. (ABB) received an approximately $1 billion power link order from TenneT, a Dutch-German transmission grid operator, which is the largest power transmission order till date for ABB. The link will connect offshore North Sea wind farms to the German mainland grid.
The company will install HVDC (high-voltage direct current) system with capacity of 900 megawatts (MW), which is the largest HVDC system in the world. The new system will reduce the electrical losses to less than 1% per converter station and the link, after completion will be providing clean wind-generated electricity to more than 1.5 million households.
As per the contract offshore platform, offshore and onshore converter stations and land and sea cable systems will be designed, supplied and installed by ABB. ABB's HVDC Light transmission technology will transport Power from the 400 MW Gode Wind II and other wind farms to an offshore HVDC converter station will be transported by ABB’s HVDC Light transmission technology. The electricity will be then sent to the onshore HVDC station at Dörpen on the German coast via 135 kilometers of underwater and underground cables. A converter station here will feed Electricity will be supplied into the mainland grid through a converter station built on the coast.
The station is expected to start its operation in 2015. It is believed the installation of the renewable energy plant will decline the annual generation of carbon dioxide by more than three million tons of carbon through replacement of fossil-fuel based generation. It is planned to double the existing capacity of Germany's installed wind power capacity of over 27 gigawatts by 2020. Currently, the installed base meets about 8% of electricity requirement.
The demand for large-scale renewable energy in Europe has been rising to meet the emissions targets and to reduce its harmful impact on the environment. Offshore wind power is a major source of renewable energy and ABB’s HVDC techniques provides an innovative and environmentally friendly way of power generation. This is the third offshore wind connection order for ABB in Germany. In 2010, the company received 800 MW Dolwin1 link contract and previously the BorWin1 project.
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 #2 Rank (short-term Buy recommendation) on ABB Ltd.
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