AMSC Secures First Order for Chinese Power Grid

American Superconductor Corporation (NASDAQ: AMSC) announced that it has received its first order for the Chinese power grid.

The company will supply a D-VAR system for a 220 kilovolt (kV) power transmission grid in Chifeng, Inner Mongolia, China. The system is necessary to stabilize voltage, relieve power grid congestion, improve electrical efficiency, and prevent blackouts.

Financial terms of the deal were not disclosed.

Beijing SNTA Electric Power Technique Company, Ltd. (SNTA), which ordered the 16 MegaVAR D-VAR system, is AMSC’s first channel partner for the Chinese power grid market.

SNTA will install the D-VAR system in the 220kV Xijiao substation, which is located in Chifeng and is operated by North East Power Grid (NEPG). AMSC expects to deliver the D-VAR system to SNTA by mid 2009.

The Xijiao substation is connected to seven wind farms that produce a combined 600 megawatts (MW) of power. The China Electric Power Research Institute, which is a part of China’s State Grid Corporation and is responsible for transmission engineering, has determined that additional voltage support is required at the Chifeng Xijiao substation to maintain reliable operation of the power grid served by this substation and enable secure transmission of wind-generated electricity to load centers.

According to the International Energy Agency, China’s power grid will require approximately US$1.5 trillion in investments by 2030.

"As China builds out and upgrades its power grid to meet the demands of its rapidly growing economy, it is seeking cutting-edge energy technologies that will meet these demands rapidly and in the most effective way possible," said Greg Yurek, founder and CEO of AMSC. "Our solutions meet these requirements, and we expect strong growth in the Chinese power grid market for many years to come."

AMSC offers power products based on two proprietary technologies: programmable power electronic converters and high temperature superconductor (HTS) wires. AMSC also offers licensed wind turbine designs and electrical systems.