ABB Completed XiangJiaBa-Shanghai 2000 kM ±800 kV UHVDC Transmission Project in China with $440 million
The Fulong converter station
ZURICH (Dow Jones)--Swiss electrical engineering giant ABB Ltd. (ABB) Monday said it has completed the roughly 2,000 kilometer long high-voltage power transmission line that links the Xiangjiaba hydro power plant in southwest China with Shanghai.
The project, for which ABB received around $440 million from the State Grid Corporation of China, or SGCC, will provide electricity to about 24 million people in the Shanghai region via an 800 kilovolt ultra high-voltage direct current transmission link.
The technology in use, which was initially developed by ABB about five decades ago, allows for the smooth transport of energy over extremely long distances with only a limited loss of power. ABB said that energy saved in this project equals the power needs of about 1 million people.
"[The technology] will play an important role in providing China with access to remote renewable energy, a key focus area for us," said SGCC executive vice president Zheng Baosen. "We are extremely pleased with the support and cooperation of ABB and the local Chinese suppliers during the execution of this project, which enabled its completion in record time."
ABB, which was awarded with the contract in 2007, said that its part of the project was completed within 30 months, about one year ahead of schedule, prompting analysts to say the company is likely to receive similar orders in emerging as well as industrial countries.
"The Xiangjiaba-Shanghai link sets a new standard in ultra high-voltage power transmission and underlines ABB's global leadership in high voltage direct current technology," said Peter Leupp, head of ABB's Power Systems division.
Many sources of renewable energy such as hydro plants are located far away from city centers. To overcome this distance, high voltage direct current grids are used. Projects such as Desertec, through which Europe aims to tap solar energy from the Sahara desert and transmit it to mainland Europe, would be too costly without such new technology, say analysts.
The technology--refined in recent years to carry more electricity--is likely to become a key growth driver for ABB as countries around the world want to link remote areas with large energy resources with industrial centers.
ABB last week received a $700 million order to link North Sea wind farms to the German power grid. In Brazil, the company is currently working on a 2,500 kilometer long grid that will link the Itaipu hydro power plant with Sao Paulo.
-By Goran Mijuk, Dow Jones Newswires, +41 43 443 80 47; goran.mijuk@dowjones.com
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