Saudi Electricity Co. has placed a $39 million order to improve the efficiency of power transmission and distribution in the country’s Eastern Province.

ABB will design, engineer, supply, install and commission equipment including 13.8 kV capacitor banks for the existing substation infrastructure in 40 locations, which will help significantly reduce electricity losses and improve the stability and quality of power supply. These technologies will improve the network's power factor, which is an indicator of the usable power available in the grid. The fast track project is scheduled for completion by mid 2011.

A capacitor is a multi-purpose device that can store an electrical charge in the form of an electric field. It is used to help stabilize power systems and make them more efficient. A distribution system’s operating power comprises active or “working” power and reactive or “non-working” power. Power factor represents the ratio between the two and is a measure of a power network's efficiency. Efficiency can be improved by correcting, or raising, the power factor. Power factor correction in inductive alternating current (AC) circuits is a common capacitor application. Capacitor banks contain a number of capacitors connected in parallel.

Substations are key installations in the power grid that facilitate the efficient transmission and distribution of electricity. They include equipment that protects and controls the flow of electrical power. ABB is the world’s leading supplier of air- and gas-insulated substations covering a range of voltage levels up to 1,100 kV.