ABB Ltd. (ABB) is set to work on one of the largest energy storage pilot project of Switzerland in partnership with EKZ, a leading distribution utility in the country. The storage facility, situated in Dietikon, will be included in EKZ’s power distribution network and will be used in important fields like balancing peak loads and consistent power supply. Besides, Grid optimization can also be done effectively.
The new facility will help in storing increased amount of intermittent renewable energies like solar and wind power with the help of more flexible and smarter grids. ABB will be providing and installing one megawatt lithium-ion battery-based solution with a preliminary capability to store 350-500 kWhs (kilowatt hours) of electricity, which would meet additional demand for power. However, EKZ will deal with evaluation of the connection and performance of grid-linked battery storage and check various operational and economic constraint. The channel is expected to start functioning by the end of 2011 when EKZ will take over the operations.
The project strengthens ABB’s focus on renewable energies and complements its power generation offering. It will help the company to expand its scope in energy storage, which is a focus area with the increase in distributed generation and renewables. ABB Ltd.’s power and automation technologies offer a solution for sustainable development, thus helping to shield the world's resources. The company has a number of technologies for the solar power industry and also a growing installed base.
The emerging markets have been significant beneficiary for the company and expected to be a major driver of growth. With an increasing rate of industrialization in these regions, demand for energy efficient solutions like electrical grids, and productivity enhancing means is on the rise. In 2011, the company expects to benefit in the emerging markets as well as in other regions, aiding its customers to construct and improve power infrastructure and enhance industrial efficiency and productivity.
However, ABB'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).
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.
We have a Zacks #2 Rank (short-term Buy recommendation) on ABB Ltd.
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