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ABB has won orders worth US$150mn from the Saudi Electricity Company (SEC) to expand five existing substations in Saudi Arabia
SEC is increasing the capacity of its substations as the company hopes to expand power generation by atleast 50 per cent, in an attempt to accommodate the needs of a growing economy, said ABB in a statement.
With the new order, ABB will expand three substations in the central region and one each in the eastern and western regions of Saudi Arabia. The extension orders include the design, supply, installation and commissioning of new switchgear bays at five existing transmission substations as well as the modification of associated automation, control, protection and auxiliary power supply systems and connected transmission substations.
ABB power systems president Claudio Facchin said, “We are privileged to continue supporting the development of Saudi Arabia’s power infrastructure. These substations will strengthen the grid and enhance transmission capacity, enabling electricity to reach more consumers and support this growing market, in line with our Next Level strategy.”
According to ABB, economic growth in Saudi Arabia and the GCC countries have given rise to the need for a strong power infrastructure that will guarantee a reliable power supply. The growth in economy is mainly driven by the oil and gas sector, added the Swiss company. To meet this rising demand, Saudi Arabia is boosting its power generation capacity from less than 60GW to about 91GW by 2020, and to more than double its existing capacity in the longer term.
In addition to expanding the substations, ABB is also working on several projects in Saudi Arabia, including an additional US$60mn order booked in Q2 2015 from SEC for 65 power transformers.