Green Investing – ABB increasing its marketshare in the Global Smart Grid and Renewable Energy Industry

ABB, the European Giant which was formed by merger of Asea and Brown Boveri in 1989 is increasing its lead in the Smart Grid Industry.The company which generated over $30 billion in revenues in 2009 with a roughly 10% Net Profit Margin is a leader in Power Systems,Network Management,Electricity Transmission and Distribution.The company has focused on alternative energy since 1999 when it divested its nuclear and oil/gas divisions.The company has a huge strengths in Power Systems Technology which makes it sometimes the only feasible supplier in building complex pieces of electricity distribution and transmission.Smart Grid is one of the most important areas of the Green Industry with huge investments expected in this area.The massive growth expected in Smart Grid Technology has attracted the likes of General Electric,Samsung,Toshiba and others.However ABB has an edge in this area due to its exclusive focus on Power Transmission,Management and Distribution.

ABB recieves huge Transmission Orders in Europe and China

ABB has been selected for a huge $700 million order to build a transmission network to transport electricity from offshore wind turbines in Germany.ABB will build a 800 MW export cable,the offshore converter stations and the HVDC cables as well.Europe is currently seeing a lot of activity in the offshore wind area with UK planning to build 30 GW of offshore wind capacity.ABB is well positioned to capitalize on this trend.ABB is also focusing its energy in big emerging markets like India and China.It is already raising its stake in the Indian subsidiary from 52% to 75% .In China,it is getting a lot of traction managing to complete a $440 million,2000 km  High Voltage Transmission Line 1 year ahead of schedule.China is going to invest huge amounts in upgrading its Grid Infrastructure and ABB with its proven capabilities is well positioned to win in that country as well.

ABB completes UHV power line to Shanghai – China Economic Review

Swiss engineering firm ABB  announced yesterday that it has completed an 800-kilovolt ultra-high voltage (UHV) transmission line from the Xiangjiaba hydro plant in southwest China to Shanghai, Dow Jones reported. The line is approximately 2,000 kilometers in length, but ABB claims that the energy saved thanks to efficient UHV technology is equivalent to the power needs of 1 million people. ABB built the project for the State Grid Corporation of China for US$440 million and completed the project in 30 months, a year ahead of schedule. Analysts said the project’s success means the company is likely to receive more of such contracts in the future in China and other developing economies.

ABB gets $700 mln offshore wind order – Reuters

Swiss engineering group ABB has received a $700 million order to connect North Sea windfarms to the German electricity grid, its biggest ever power transmission order.ABB will provide German transmission grid operator transpower with equipment for an 800 megawatt power link going from the windfarms to the northwest German coast, ABB said on Friday.”This is the largest power transmission order in ABB’s history,” the group, which competes with France’s Schneider, said in a statement.

ABB makes an entry into Solar Energy Installation

ABB has not really been big in Solar Energy till now despite the industry’s scorching  50% CAGR since 2000.However things seem to be changing as ABB has managed to win a $50 million contract to build solar plants of 13 MW capacity in Italy in 2000.Note other players like Samsung and LG have already announced big plans in the solar energy area.Companies like Siemens and Schneider Electric also have a substantial presence in Solar Energy.

Order Focus: ABB signs $50m power plant supply contract with Actelios Solar – PV – Tech

ABB, the power and automation technology group based in Switzerland, has won an order worth US$50 million from Actelios Solar, to supply three photovoltaic solar power plants in western Sicily, Italy. The plants, with a total combined power capacity of over 13MW, will be based in Spinasanta, Cardonita and Sugherotorto and will be 6MW, 3.8MW and 3.3MW respectively.

Summary

ABB is an attractive low risk Green Investment with a huge growth potential in the Smart Grid and Renewable Energy sectors.ABB’s Technology and Experience are huge differentiators in a highly competitive industry.The company has focused on the Green Energy sector a long time before its rivals like GE ,Siemens,Samsung and others.Its recent failure to win over Energy Storage company Chloride Group shows that its thinking of increasing its Green Footprint through acquisitions also.It acquired Smart Grid Software maker Ventyx for $1 billion to further bolster its strengths in that area.

Emerson ups Chloride bid stakes – Google

The battle for former battery manufacturer Chloride has sparked into life after a US firm increased its takeover offer to nearly £1 billion.The new proposal from Emerson Electric represents a 15% increase on the previous deal agreed by Chloride with Zurich-based firm ABB.Chloride, which helps blue-chip firms to protect against power outages, employs 2,300 people in 15 countries, of which 374 are located in the UK.

ABB acquires Ventyx to strengthen its network management business – ABB

ABB, the global power and automation technology group, has agreed to acquire Ventyx for more than $1 billion from Vista Equity Partners to become a leading provider of software solutions for managing energy networks.Ventyx is a leading software provider to global energy, utility, communications, and other asset-intensive businesses, offering a broad range of solutions including: asset management, mobile workforce management, energy trading and risk management, energy operations and energy analytics. The company also provides software solutions for planning and forecasting electricity needs, including renewables.