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AMSC secured five new contracts valued at over US$11 million for its D-VAR STATCOM product, with three of the orders intended to serve the renewable energy sector.
Global energy solutions provider AMSC (NASDAQ:AMSC) announced on Wednesday (July 18) that it has secured five new orders valued at over US$11 million for its D-VAR STATCOM product.
D-VAR STATCOM, a static compensator for alternating current (AC) power grids, aids consumers by providing dynamic voltage control and power factor correction to stabilise power grids.
The company said that three of the orders would be used to assist the renewable energy sector in the course of connecting wind farms to the electric grid.
“Our recent wins in the global renewable energy and industrial markets provide a solid foundation for what we believe will be another year of growth in our Grid business in fiscal 2018,” Daniel P. McGahn, president of AMSC, said in the press release.
AMSC said that the consumers using D-Var would be protected from voltage collapse and the system would compensate for voltage disturbances which is a crucial aspect of wind power plants.
According to the company, the system would dynamically inject leading or lagging reactive power into the grid, thereby helping the developers to meet interconnection requirements as the system would boost overall performance of wind farms.
Although the company didn’t name its clients, AMSC said that two of the five orders are expected to be used for industrial power quality applications.
Apart from D-Var system, AMSC provides wind turbine controls and systems that reduces cost of wind energy while its Gridtec solutions provides the developers a solution to optimize network, reliability and performance. It has to be noted that the company recently entered into a settlement agreement with Sinovel Wind Group to resolve all existing commercial disputes between the two companies.
Following the announcement, shares of AMSC gained 4.90 percent over the one day trading period and closed at US$5.14. The stock has a sell ranking on TradingView with 15 verticals against, nine in neutral and two in favor.
However, AMSC has a moderate buy ranking on TipRanks with an analyst target price of US$7.
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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.
