ABB wins US $25 million in multiple FACTS orders

2003-06-27 - Flexible A Transmission systems add capacity to utility power transmission systems

Zurich, Switzerland, June 26, 2003 - ABB, the leading power and automation technology group, announced today that it has received three separate orders totaling US$ 25 million to install flexible AC transmission systems (FACTS) for utilities located in the United States and Australia.

One contract, valued at approximately US$ 13 million, was awarded by the Australian utility, TransGrid, for a static var compensator (SVC) for the 330 kV AC interconnection between NSW and Queensland. ABB already delivered two SVCs to PowerLink for another section of this important link. The latest SVC will be installed at the Sydney West substation in order to provide rapid voltage support to the transmission system supplying Sydney and New South Wales, particularly during network contingencies. This is a turnkey project scheduled for completion in July 2004.

The two US contracts are worth approximately US$ 12 million and are both upgrades of existing series compensation installations - another FACTS technology. One contract, awarded by Idaho Power, is for the replacement of an existing installation of the main 345 kV system at the Goshen substation in Idaho and is vital for improving transmission capacity between generation units and load areas located in western region of the country.

The other contract was received from Nevada Power Company for the replacement of an existing installation at the McCullough substation, close to the city of Las Vegas. In addition to equipment delivery and site works of the new installation, this turnkey contract also includes dismantling and disposal of the existing series compensation units. The new installation will substantially increase the transmission capacity of the McCullough-Crystal line into the Los Angeles area.

The common objective of these projects is to enhance, in a cost-effective way, the feed of electrical power into major load areas in the western United States. Both projects are scheduled for completion before the summer peak load of 2004.

Static var compensators and series compensation are part of a group of several technologies commonly referred to as FACTS. These technologies enable power grid owners to increase the capacity of existing transmission networks, while maintaining or improving the operating margins necessary for grid stability.

By applying FACTS, more power can reach consumers with a minimum impact on the environment, and at lower investment costs compared to the more time-consuming alternative of building new transmission lines or power generation facilities.

ABB is a worldwide leader in the growing field of FACTS, with 39 contracts totaling US$ 470 million in the past three years.

ABB (www.abb.com) 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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    A typical flexible AC transmission system with 500 kV series compensation

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