ABB wins US$ 90 million contract in Saudi Arabia

Flexible AC Transmission Systems for added power in Riyadh area

Zurich, Switzerland, July 10, 2003 - ABB, the leading power and automation technology group, announced today it has won a turnkey contract worth US$ 90 million to install Flexible AC Transmission Systems (FACTS) technology in Saudi Arabia.

The installation will improve the transmission capability of a 380-kilovolt power transmission corridor by 80 percent, preventing power shortages in the Riyadh area during summer peaks and eliminating the need to build costly new transmission lines or power generation facilities.

“With FACTS, more power can reach consumers at lower investment costs and with a minimal impact on the environment,” said Peter Smits, head of ABB’s Power Technologies division. “This high-end power technology enhances the security, capacity and flexibility of existing power
transmission systems.”

ABB will design, manufacture, install and commission four series compensation units in the existing transmission corridor between the Eastern and Central regions of the Saudi Electricity Commission (SEC) grid. Series compensation is part of FACTS technology and enables grid owners to increase capacity while maintaining or improving grid stability.

ABB’s system is the first series compensation technology to be used in Saudi Arabia. ABB leads the growing field of FACTS, with 40 contracts worth more than US$ 600 million in the past three years.

ABB will also expand a 230-kilovolt substation, install a 300-kilometer long, high speed fiber optic telecommunication link, and build an auxiliary power feeder and associated equipment.

ABB ( is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 135,000 people.

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    Typical series compensation installation

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    For more information please contact:
    • Media Relations:
      ABB Corporate Communications, Zurich
      Wolfram Eberhardt
      Tel: +41 43 317 6512
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      Power Technologies
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