ABB Enhances Renewable Energy Portfolio with Acquisition from Siemens Gamesa
Madrid, Wednesday, 18 December 2024.
ABB is set to acquire Gamesa Electric’s power electronics business from Siemens Gamesa to boost its renewable energy solutions, expanding its serviceable installed base by approximately 40 GW.
Strategic Acquisition Details
In a significant move announced on December 17, 2024, ABB signed an agreement to acquire Gamesa Electric’s power electronics business from Siemens Gamesa [1][2]. The acquisition, while financial terms remain undisclosed [1], encompasses a comprehensive portfolio including DFIG wind converters, industrial battery energy storage systems (BESS), and utility-scale solar power inverters [3]. The deal will bring under ABB’s control two Spanish converter factories in Madrid and Valencia, along with a workforce of approximately 400 employees, including over 100 specialized engineers across India, China, United States, and Australia [6].
Market Impact and Financial Performance
The acquired business has demonstrated strong market presence, reporting revenues of approximately 170 million euros for the fiscal year ending September 30, 2024 [1]. This strategic move aligns with the growing renewable energy sector, where global capacity is expected to reach nearly 940 GW annually by 2030, up from 666 GW in 2024 [1]. Notably, solar PV and wind technologies are projected to account for 95% of this growth [1], positioning ABB advantageously in these rapidly expanding markets.
Integration and Future Outlook
Chris Poynter, President of ABB’s System Drives division, emphasized the strategic nature of the acquisition, stating that it aligns with their commitment to expand their portfolio for high-power renewable applications and support productivity in a low-carbon world [1][6]. The transaction is expected to close in the second half of 2025, subject to regulatory approvals and customary closing conditions [1]. This acquisition is particularly significant as renewable energy sources are projected to comprise nearly 50% of global electricity generation by 2030, with wind and solar PV doubling to 30% [1].
Technological and Service Enhancement
The acquisition will significantly expand ABB’s existing power conversion product and service offerings to renewables OEMs and end users [6]. It will enhance ABB’s engineering capabilities in power conversion and grid connection, while also providing opportunities to service a larger installed base [6]. The company plans to leverage this acquisition to access new service, modernization, and repower opportunities in the renewable energy market [1], strengthening its position in the growing market for high-powered renewable power conversion technology.