- Acquisition complements ABB’s renewable energy conversion portfolio, adding significant market reach
- By 2030, renewable energy sources are expected to account for almost half of global electricity generation, with the share of wind and solar PV doubling to 30%.
- Helps expand opportunities for ABB to modernize and maintain the renewable energy installed base
- Enables ABB to achieve its ambition for profitable growth, while strengthening its relationships with key customers
ABB today announced that it has signed an agreement to acquire Gamesa Electric’s power electronics business in Spain from Siemens Gamesa to strengthen ABB’s position in the growing power conversion technology market. high-power renewable energy. The acquisition will significantly expand ABB’s existing offering of power conversion products and services to OEMs and renewable energy end-users, with a new portfolio and engineering assets that will support the profitable growth strategy of ABB’s Motion business sector. The transaction is subject to regulatory approvals and customary closing conditions and is expected to close in the second half of 2025. Financial terms were not disclosed.
The offering acquired by ABB focuses on electrical products for energy conversion and includes wind converters with doubly fed induction generator (DFIG), industrial battery energy storage system (BESS) and large-scale solar inverters. The transaction will complement ABB’s expertise with more than 100 highly specialized engineers and two Spanish conversion plants in Madrid and Valencia, for a total workforce of approximately 400 employees, including key resources in India, China, the United States, United and Australia. Gamesa Electric’s power electronics business achieved sales of around €170 million for the financial year ended September 30.th2024.
The International Energy Agency1 estimates that global renewable capacity additions will continue to increase each year, reaching nearly 940 GW per year by 2030, up from 666 GW in 2024, based on existing policies and market conditions. Solar PV and wind together are expected to account for 95% of total renewable capacity growth by the end of this decade.
“This targeted acquisition is consistent with our commitments to grow our portfolio of high-power renewable applications and support productivity in a low-carbon world. This will expand our engineering depth for power conversion and grid connection, and add a significant opportunity to serve a large installed base,” said Chris Poynter, president of ABB’s System Drives business. “With the acquisition of this business, we will be much better positioned to capitalize on the expanding power conversion market for renewable energy while strengthening our relationship with Siemens Gamesa as a key customer.
The acquisition also aims to increase ABB’s usable power conversion installed base with the addition of approximately 40 GW, leveraging ABB’s global organization to access new opportunities in services, modernization and resupply. The deep domain expertise of the Gamesa Electric team will also help increase the reach of ABB’s digital offering. Additionally, ABB plans to enter into a supply and services agreement with Siemens Gamesa.
ABB is a global technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. By connecting its expertise in engineering and digitalization, ABB helps industries operate at high performance, while becoming more efficient, more productive and more sustainable in order to outperform. At ABB we call this “Designed to Exceed”. The company has more than 140 years of history and has more than 105,000 employees worldwide. ABB shares are listed on the SIX Swiss Exchange (ABBN) and Nasdaq Stockholm (ABB). www.abb.com
Image courtesy of Siemens Gamesa