) received a contract from King Abdullah Economic City (KAEC) for
providing substations to boost its transmission capacity and
electric supply. The contract, booked in the fourth quarter of
2013, is valued at $60 million. These substations are expected to
strengthen the existing transmission grid, thereby improving
power supplies to drive economic growth.
Substations are important installations in the power grid that
transform voltage levels per requirement, thereby facilitating
reliable and efficient transmission and distribution of
electricity. The substations primarily include equipment that
protect and control the flow of electrical power.
As per the contract, ABB will be required to supply its
compact gas-insulated 380 kV (kilovolt) switchgear (GIS)
technologies. These technologies will ensure reliability and
reduce the negative impacts on the environment. Apart from this,
other key product supplies comprise control and protection
equipment, auxiliary systems and substation automation equipment
compliant with the international IEC61850 standard to enable
monitoring and control of the substations from a remote control
centre KAEC is an important commercial hub in Saudi Arabia that
is expected to generate about one million jobs for the country,
thereby ensuring strong economic development.
Prior to this, ABB was awarded a contract by Saudi Electricity
Company to design, supply, install and commission an expansion of
the 380 kV (kilovolt) Haramain high-speed railway (HHR3)
substation that supplies electricity to KAEC at 110 kV. This
proves ABB's strong presence in Saudi Arabia.
The initiative to strengthen the existing power grid is
integral to Saudi Arabia's plans to rank among the top ten
investment destinations in the world by attracting foreign
capital. This is a move to diversify the country's
predominantly oil-based economy.
ABB is the leading supplier of air- and gas-insulated
substations and has more than 10,000 installations across the
globe, with voltage levels of up to 1,100 kV. These substations
serve various industries including utility, industry and
commercial customers and also sectors like railways, urban
transportation and renewables.
ABB currently has a Zacks Rank #3 (Hold). However, other
stocks in the Power sector which are worth considering at the
Pioneer Power Solutions, Inc.
Tyco International Ltd
). Pioneer has a Zacks Rank #1 (Strong Buy) while ITT and Tyco
carry a Zacks Rank #2 (Buy).
ABB LTD-ADR (ABB): Free Stock Analysis Report
ITT CORP (ITT): Free Stock Analysis Report
PIONEER PWR SOL (PPSI): Get Free Report
TYCO INTL LTD (TYC): Free Stock Analysis
To read this article on Zacks.com click here.