American Superconductor Corp. (AMSC), a global power technologies company, has signed a definitive agreement to acquire The Switch Engineering Oy, a power technologies company headquartered in Finland. The 190-million-euro acquisition (approximately US$265 million) is expected to be immediately accretive and support AMSC's growth to $1 billion in annual revenues. With sales of both power converter systems and permanent magnet generators to wind turbine manufacturers in China, Europe, Korea and the United States, this acquisition will diversify AMSC's customer base and channels to market.

“Both AMSC and The Switch are well positioned in Asia, which is now the world's largest and fastest growing wind power market,” said Greg Yurek, founder and CEO of AMSC. “Our combined company is expected to be serving China's three largest wind turbine manufacturers — Sinovel, Goldwind and Dongfang — in various capacities. The Switch will also significantly strengthen AMSC's presence in Western wind markets with customers such as GE and create a new channel to market for AMSC in addition to our Windtec licensees. In short, this combination will create a global wind powerhouse.”

AMSC's growth in recent years primarily has been driven by the sale of wind turbine core electrical components and full wind turbine electrical control systems (ECS) to Windtec licensees and strategic partners. The Switch provides a substantial existing channel for power electronics and control system sales to other global wind turbine manufacturers. The Switch focuses on the production of power converter systems (PCS), which are a subsystem of full wind turbine ECS. By joining forces with The Switch, AMSC also sees the opportunity to further enhance the performance and reduce the cost of its PCS and ECS offerings. The Switch today offers PCS's with power ratings ranging from 1 MW to 6 MW.

The Switch also opens a new addressable market opportunity exceeding $1 billion annually with its portfolio of proprietary permanent magnet generators (PMG). PMG are a powerful new class of generators that are used inside an increasing number of both geared and direct drive wind turbines. The Switch today offers low-, medium- and high-speed PMG up to 6 MW in power rating. These PMG systems, which already are being utilized by several companies in Europe, the U.S. and Asia, will extend the technology portfolio currently available to Windtec customers and increase AMSC's potential value per MW of wind power. AMSC also expects to leverage The Switch's strong background in advanced synchronous generators to commercialize superconductor generators for direct drive SeaTitan(TM) wind turbines.

“In today's market, there is a great demand for multi-megawatt turbines utilizing advanced power electronics and permanent magnet generators - a trend that AMSC and The Switch can take advantage of,” said Jukka-Pekka Mäkinen, President and Chief Executive Officer of The Switch. “From virtually all angles - culturally, commercially and strategically - the synergies of a combination of The Switch and AMSC were immediately evident to both of our organizations. After the closing, we will be able to exploit our combined engineering and manufacturing expertise to speed up our clients' access to markets as well as to significantly increase the number of wind turbines ‘Powered by AMSC.’”

For calendar year 2010, The Switch generated approximately US$179 million in total revenue and approximately US$15 million in net income. The transaction is valued at approximately US$265 million, with approximately US$186 million to be paid in cash and the remainder to be paid in the form of AMSC stock based in part on the average closing price of AMSC's stock prior to the closing. These figures are based on current exchange rates. AMSC plans to use its existing cash balance to finance the deal. Closing of the transaction, which has been approved by both companies' Boards of Directors and is subject to customary closing conditions and regulatory approvals, is expected by August 31, 2011.

On Friday the 14th of January 2011, KETRACO signed a Sh2.7 billion contract with global engineering company Siemens for the extension of Rabai and Embakasi substations.

Managing Director Eng. Joel Kiilu said the extension of the 220-kV substations is vital in order to tie in electricity transmitted within the 400-kV and 220-kV Mombasa-Nairobi transmission line that is currently being constructed by Indian company Kalpataru.

“The extension of the two substations will make it easy to transmit power within the high-voltage line from Mombasa,” he said during the contract signing ceremony.

Kiilu said the project would for the first time involve the installation of an eight kilometer underground cable near Embakasi. Though erecting underground cables is expensive, this was the only alternative because the site falls on a flight path and installing normal towers could pose a threat to airplanes landing at the Jomo Kenyatta International Airport.

The project, being financed by the France Development Agency (AFD) and the Kenyan Government, is expected to take 20 months. AFD has contributed Sh2.2 billion while the Government is providing the rest.

“We promise to employ our expertise in this field and could finish the project within 17 to 18 months,” said Jaussoin.

Extension of the Rabai and Embakasi substation form lot three of the Mombasa - Nairobi transmission line being constructed at Sh7.4 billion. Lot one comprises the segment of the line between Rabai and Tsavo River, while lot two comprises the line between Tsavo River and Embakasi substation.

The line is of critical importance because it will be used to transfer electricity from thermal power stations in the coastal area to Nairobi, improve the power system stability, reliability and reduce technical losses and play a major role in regional power trade.

Kiilu said KETRACO plans to invest Sh1 billion over the next four years in construction of transmission lines across the country. He also revealed that a consultant will soon be contracted to develop a wheeling charge mechanism to enable the company recoup its investments besides opening up channels for power exchange in the region.