ABB Ltd. ABB recently unveiled its plans to initiate the installment of “integrated smart grid-enabled switchgear” substations in Northwest China. This next generation substations can slash space requirements of conventional substations by as high as 70%.
This project, under China-based electric utility company State Grid China Corporation (“SGCC”), aims to develop a series of next-generation smart substations for ensuring reliable and greener grids. Through this project, SGCC aspires to offer state-of-the-art software and power technology to increase the technical competency of these substations. This is where ABB, with an impressive track record of installing 1,800 similar smart substations, comes into the picture.
In particular, ABB is in charge of installing the world’s first disconnecting circuit breaker with Fiber Optic Current Sensor application that can support as high as 363 kilovolts (kV) of electric current. The system assimilates three key substation functions, namely, circuit-breaking, disconnecting and current measurement, which results in smaller footprints, lower operating costs and minimum environmental impact.
Of late, the Chinese government has prioritized the development of flexible and reliable national grids that can support a robust renewable power sector in the country, going forward. Per National Energy Administration’s report, China is currently the largest user of renewable energy, which accounts for 30% of the total installed power capacity in the country. The proposed substations, to be installed in Fuping, Shanxi province, will likely play a major part in fulfilling the power requirements of the upcoming industrial sector in the region.
This apart, ABB will offer its smart medium-voltage switchgear and transformer e-devices like self-dehydration breathers to extend the benefits of Internet of Things, Services and People to this project. From a broader perspective, supplying pioneering technology for such projects forms part of the company’s “Next Level Strategy” that focuses on three primary areas, namely, profitable growth, relentless execution and business-led collaboration.
We believe ABB’s growth initiatives under the Next Level Strategy have helped it win key power-transmission orders, specifically in Europe and China. Given the current industry trends, the company expects to gain from high investments in power transmission projects in mature and emerging markets as well as ongoing investments toward maintenance of ageing electric infrastructure. We expect ABB to continue winning such lucrative awards in the future, thereby ensuring long-term growth.
ABB currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Dycom Industries Inc. DY, CUI Global, Inc. CUI and TriMas Corporation TRS. While Dycom Industries and CUI Global sport a Zacks Rank #1 (Strong Buy), TriMas holds a Zacks Rank #2 (Buy).
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