American Superconductor Corporation introduced its new line of SuperVAR(TM) high temperature superconductor (HTS) dynamic synchronous condensers -- machines that cost-effectively increase and optimize the transmission capacity of existing power grids. Tennessee Valley Authority (TVA) has ordered five SuperVAR units. Subsequent to the initial introduction of AMSC's advanced wires to the market last year, this sale marks the first fully commercial product to incorporate the company's HTS wire technology.

SuperVAR machines provide reactive power measured in VARs (volt-amperes reactive) that are required to ensure the reliable flow of electricity through alternating current (AC) power grids. The machines are based on AMSC's proprietary HTS motor and generator technology. All five units will be based on a prototype, which TVA is helping finance and which is expected to be installed on TVA's grid in November 2003. TVA currently operates other grid reliability solutions from AMSC.

Utilities and grid operators face increasing demands for electric power that strain existing power transmission networks. The result -- over-taxed power lines that can lead to brownouts or blackouts -- often is expensive and disruptive. SuperVAR synchronous condensers offer a cost-effective and flexible solution to optimize existing grid assets.

"Demand for electric power in the U.S. is increasing each year and our customers, driven by the digital economy, are requiring higher reliability and better power quality," said Terry Boston, Executive Vice President of TVA's Transmission/Power Supply Group. "Until now, we've met our need for VAR support by a variety of means, including capacitors and power electronic-based systems. SuperVAR machines update the existing technology of synchronous condensers that have been widely used in power transmission. We believe they will provide a cost effective means to increase the power throughput and reliability of our transmission grid. By getting more out of our existing transmission assets, we'll be able to continue providing our customers the reliable service they need, at reasonable costs."

"This product is developed off our current platform of HTS motors and generators in direct response to customers' needs," said Greg Yurek, chief executive officer of American Superconductor. "We began working with TVA engineers and business managers over six months ago to create a better, lower-cost way to meet their needs for reactive power support. SuperVAR machines open up an entirely new market for HTS technology. Their introduction coincides extremely well with the sharp increase in investment for new grid solutions that's predicted in the U.S. over the next 10 years."

The SuperVAR product line compliments AMSC's family of transmission grid products such as its dynamic reactive compensation device, or dynamic-VAR (D-VAR(TM)), and its Distributed Superconducting Magnetic Energy Storage (D-SMES) systems. SuperVAR machines are specifically designed for continuous, steady-state dynamic VAR support while maintaining a reserve for transient problems. In contrast, D-VAR systems -- based on AMSC's PowerModule(TM) power converters -- are designed to solve local voltage issues through a controlled, directed output thus addressing more specific existing or known transient problems. D-SMES systems provide real power in industrial and grid settings. Together, these products allow utilities to optimize a solution for their specific continuous or transient needs in their environment. AMSC's transmission planning and sales teams work with utilities and transmission grid operators to conduct extensive grid studies and determine the best solution in every case.

Technical Background

Synchronous condensers are AC synchronous rotating machines that produce the reactive power required to ensure reliable flow of electricity through AC power grids. AMSC's proprietary SuperVAR machines upgrade existing technology by using standard synchronous condenser frames and stator coils mated with new, power-dense rotor coils made from AMSC's HTS wires. The result is a synchronous condenser that is more efficient than conventional machines without the typically high rotor maintenance costs. In addition, the HTS rotor enables these machines to provide up to eight times their rated capacity for short periods -- a feature that allows SuperVAR machines to support both continuous and transient VAR requirements.

SuperVAR machines are specifically designed for continuous, steady-state dynamic VAR support while having multiples of their rated output in reserve for transient problems. The first prototype SuperVAR synchronous condensers will have an 8 mega-VAR (MVAR) continuous rating and will have up to an 8X overload capacity. AMSC expects to also extend the product line to include units of substantially larger ratings.

"Like ship propulsion motors and generators, dynamic synchronous condensers are a high-growth business opportunity for our company," said David Paratore, vice president and general manager of American Superconductor's Electric Motors and Generators business unit. "Our market analysis shows that the current U.S. market for SuperVAR machines is approximately $200 million per year with a projected compound annual growth rate of more than 15 percent. The worldwide market for synchronous condensers is projected to be four to six times larger."