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ABB Ltd.

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FACTS solution to increase electricity supply and improve grid reliability

Zurich, Switzerland, Sep. 18, 2009 - ABB, the leading power and automation technology group, has won an order worth $25 million from Chile's leading transmission utility, Transelec SA, to provide an SVC Light (Static VAr Compensation) installation for its Cerro Navia substation to enhance the capacity and reliability of power supplies in the metropolitan area of Santiago.

ABB will design, supply, install and commission a static compensator (STATCOM), which uses the company's patented SVC Light technology to stabilize voltage fluctuations in the grid, This is the first time STATCOM technology will be deployed in Chile, enabling Transelec to increase the electricity supply through its existing 500-kV transmission lines, which transfer power from the south of the country to mid-town Santiago. The project is expected to be completed by 2011.

"By stabilizing voltages in the grid, SVC Light enables electricity providers to make better use of existing infrastructure," said Per Haugland, Head of ABB's Grid Systems business. "That reduces the need to build new installations, which can be costly and time consuming"

SVC Light is part of ABB's family of FACTS (flexible AC transmission systems) technologies, which enhance the capacity, security and flexibility of power transmission systems, making an important contribution to development of smart grids. FACTS technologies allow more power to reach consumers with minimal environmental impact, with lower investment costs and shorter implementation times than the traditional alternative of building new transmission lines or power plants. FACTS technologies also address voltage and stability issues and enable the transmission system to run more efficiently.

ABB is a global leader in the growing field of FACTS. ABB has previously delivered other SVC solutions to the Chilean transmission grid and has more than 700 such installations in operation or under construction across the world.

ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 120,000 people.

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ABB Wins $25 Million Power Order in Chile

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