ABB Ltd.(ABB) recently received a $30 million contract from the Power Grid Company of Bangladesh Limited (PGCB) for supplying as many as four new turnkey substations along with extension support for six existing ones, in order to meet the rising electricity demand in the region.
The four substations, with a generation capacity of 132/33 kilovolts (kV) of electricity, will be manufactured at ABB’s facilities in Rangamati, Khagrachori, Bianbazar and Sunamganj. Per the contract, ABB will be required to offer diverse services including designing, installation and commissioning of the substations. For this, the company will extend its power transformer and switchgears in both high-and-medium voltages, along with equipment for control and protection. Additionally, the company will provide its substation automation systems which comply with the global IEC 61850 open communication standards.
The contract is part of Bangladesh’s ongoing initiatives for expanding power systems and enhancing efficiency. The program, aiming to augment the generation capacity as well as the transmission and distribution systems, will extend the coverage to about 450,000 households. Apart from boosting electricity generation, the initiative will also minimize the environmental impact as it is expected to cut the annual carbon emission by about 2.5 million tons.
The news comes after ABB’s recent disclosure of its Next Level strategy for 2015–2020. Per this strategy, the company will be undertaking a series of initiatives to boost its operations while focusing on developing innovative technologies to drive future growth. The company has also been undertaking divestment measures to exit from non-profitable businesses. In recent past, ABB has sold the Thomas & Betts’ heating, ventilation and air conditioning business to Trinity Industries Inc. (TRN) for $260 million and Power-One’s Power Solutions business to Bel Fuse Inc. (BELFA) for $117 million.
Apart from the aforementioned contract, ABB received a $70 million contract from Swiss Railways (SBB) to provide novel traction converters for modernization of the latter’s locomotive fleet.
Recently, the company also collaborated with project leader RWE and TU Dortmund University for developing smart-grid distribution automation solutions in Germany. This initiative forms part of the European Union-funded Grid4EU project.
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