ABB Ltd. (ABB) won a contract from the Ceylon Electricity Board in Sri Lanka. The $40 million order deals with intensification of the electricity transmission capacity and power consistency in Central and Western Provinces of the nation. ABB booked the order in the fourth quarter of 2014.
Per se the turnkey contract, ABB will provide two new 220-kilovolt (kV) substations at Polpitiya and Padukka villages as well as enhance efficiency of the existing substation at Pannipitiya. This apart, ABB will also be responsible for providing related equipments including medium-voltage switchgear, high-voltage air-insulated switchgear, systems for fiber-optic telecommunications and advanced IEC 61850-compliant protection and substation automation. The project is expected to complete in 2017.
As a matter of fact, this project is a part of the Sri Lankan government’s Clean Energy and Network Efficiency Improvement Project that is aimed at improving the power reliability, reducing losses and insuring higher integration of renewable. To further enhance the renewable energy’s share (to around 20%) in the national grid, the government intends to set up over 2,500 megawatts (MW) of additional power generation capacity by 2020.
With this crucial project, ABB will contribute to the growing demand of electricity in Sri Lanka, by amplifying the transmission capacity. Moreover, the increasing rate of urbanization in the nation subsequently calls for a significant boost in the power generation capacity. ABB’s state-of-the-art transmission infrastructure will serve to fill the technological gap, enabling the country to meet the growing requirements.
Notably, ABB has been benefitting from the increased exposure in the power and infrastructure industry on a global platform. Last month, the company received a $55 million contract from the Indian states of Bihar and West Bengal for manufacturing transmission and distributions substations (read more: ABB Wins $55M Deal to Boost Indian Power Infrastructure).
However, ABB currently has a Zacks Rank #4 (Sell). Some better-ranked stocks include Pioneer Power Solutions, Inc. (PPSI), AO Smith Corp. (AOS) and Regal Beloit Corp. (RBC). While Pioneer Power Solutions sports a Zacks Rank #1 (Strong Buy), both AO Smith and Regal Beloit carry a Zacks Rank #2 (Buy).
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