AMSC wins Chinese order

American Superconductor Corporation (AMSC) has announced it has received its first order for a D-VAR system to meet dynamic reactive compensation requirements for a 220 kilovolt (kV) power transmission grid in Chifeng, Inner Mongolia, China. Reactive power compensation is necessary to stabilise voltage, relieve power grid congestion, improve electrical efficiency, and prevent blackouts in power grids.

Beijing SNTA Electric Power Technique Company, Ltd. (SNTA), which has 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, located in Chifeng, and is operated by North East Power Grid (NEPG). SNTA is one of China's primary suppliers of low- and high-voltage reactive compensation products and turnkey power grid solutions.  
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 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 centres.

The contract between AMSC and SNTA was signed on 31 December 2008 in a ceremony at SNTA headquarters in Beijing. AMSC expects to deliver the D-VAR system to SNTA by mid 2009.

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