Electronics and electrical engineering company Siemens AG (SI) recently extended its service and maintenance contract with RES Americas, one of the leading renewable energy companies in North America, for two of its wind power projects in Texas. The extension will facilitate RES Americas to avail Siemens’ services for an additional 15-year period beyond the expiry of the existing 5-year contract period.
According to the terms of the contract, Siemens will provide service, maintenance, and warranty for the 26 SWT-2.3-93 wind turbines operating at RES Americas’ Whirlwind Energy Center and the 72 SWT-2.3-93 units at RES Americas’ Hackberry Wind Farm. These wind power projects cumulatively produce 226 megawatts (MW) of electricity, which is adequate to meet the energy requirements of 68,000 Texas households annually.
With the contract extension, the projects are likely to perform seamlessly leveraging the advanced remote monitoring and diagnostics features of Siemens’ Advanced Grid Performance (AGP) upgrade that enable the wind park operators to adjust according to the constantly evolving grid requirements.
Wind power and related services are an integral part of Siemens’ Environmental Portfolio, which recorded revenues of about €33 billion in fiscal 2012, thereby making it one of the world’s largest suppliers of eco-friendly technologies reducing carbon dioxide (CO2) emissions by over 330 million tons.
Siemens’ Energy business segment comprises Power Generation (PG), Power Transmission & Distribution (PTD) divisions, Fossil Power Generation, Renewable Energy and Solutions for the Oil and Gas Industry. The PG division offers services and products, such as the planning and construction of power plants, the manufacture and installation of components and systems, power plant upgrades, energy management systems, and fuel cells. It also supplies turbines, compressors, and complete solutions for industrial plants, particularly in the oil and gas industry. The PTD Division is a manufacturer, systems integrator and provider of solutions and services for the power utilities and industry customers, which enables utilities to transport and distribute electricity.
Siemens presently has a Zacks Rank #3 (Hold). Other players in the industry worth reckoning include Cubic Corporation (CUB), Research Frontiers Inc. (REFR), and Analogic Corporation (ALOG), each carrying a Zacks Rank #2 (Buy).
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SIEMENS AG-ADR (SI): Free Stock Analysis Report
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