Avangrid Boosts Resiliency and Reliability of Onshore Portfolio with First Mobile Transformer

Rhea-AI Summary

Avangrid (NYSE: AGR) has acquired a custom-built, state-of-the-art mobile transformer to enhance the resiliency and reliability of its onshore wind and solar operations across the U.S.

This transformer, purchased from Hitachi Energy, can be deployed and installed quickly, significantly reducing downtime from the standard two-year wait for replacement transformers to just a couple of months.

The 168 MVA transformer features multi-voltage capabilities, a low profile for easy transport, and the ability to withstand higher transport accelerations, ensuring rapid response to outages after major storms.

CEO Pedro Azagra emphasizes that reducing downtime supports Avangrid's commitment to accelerating the clean energy transition.

Positive

• Acquisition of state-of-the-art mobile transformer.
• Significant reduction in downtime from two years to a couple of months for transformer replacement.
• 168 MVA capacity with multi-voltage capabilities for versatile use.
• Low profile and higher transport acceleration resistance enable quick deployment.
• Enhances resiliency and reliability of wind and solar operations.
• Supports Avangrid's mission to accelerate the clean energy transition.

Negative

• No specific financial data or impact on revenue provided.
• Potential high costs associated with custom-built equipment.
• Reliance on external supplier Hitachi Energy.

Insights

Energy Market Analyst

Avangrid's acquisition of a mobile transformer is a strategic move to bolster the reliability and resiliency of its onshore wind and solar operations. Utility-scale transformers are critical components of the electric grid, managing the flow of energy from generation facilities to consumers. The typical replacement time for these transformers is around 18 months, leading to significant downtime, which can disrupt the supply of renewable energy. With the new mobile transformer, Avangrid can now address outages within a couple of months, significantly reducing downtime and ensuring a continuous energy supply.

The 168 MVA mobile transformer is custom-made with multi-voltage capabilities and can withstand higher-than-normal transport accelerations, making it highly versatile and suitable for quick deployment. This innovation aligns with Avangrid's mission to accelerate the clean energy transition by ensuring minimal disruption to power generation. For investors, this move is a positive indicator of Avangrid's commitment to maintaining and enhancing the reliability of its renewable energy assets, which can lead to more stable revenue streams and potentially higher returns.

Financial Analyst

From a financial perspective, Avangrid's investment in a mobile transformer represents a proactive approach to risk management and operational efficiency. Transformer failures can lead to significant financial losses due to prolonged outages and the associated costs of procuring and installing replacement equipment. By acquiring a mobile transformer, Avangrid mitigates these risks, potentially saving millions of dollars in downtime-related expenses and lost revenue. Moreover, the quick deployment capability of the mobile transformer ensures that Avangrid can maintain consistent energy production, which is critical for revenue generation and customer satisfaction.

This strategic investment can also enhance investor confidence in Avangrid's ability to manage operational risks and maintain the reliability of its renewable energy assets. In the long term, such innovations can contribute to the company's financial stability and growth, as they demonstrate a commitment to leveraging advanced technologies to improve operational efficiency and resilience.

Custom-built and ready to be deployed, this equipment can be installed quickly and will significantly decrease downtime in the event of a damaged transformer

Click here and here for images of the mobile transformer

PORTLAND, Ore.--(BUSINESS WIRE)-- Avangrid, Inc. (NYSE: AGR), a leading sustainable energy company and member of the Iberdrola Group, today announced it acquired a state-of-the-art mobile transformer that can be quickly deployed and enables the company to resolve outages in the event of a damaged transformer in a couple months compared to the two-year lead time for a replacement transformer.

“We are thrilled to have this first mobile transformer, which is an exciting new addition to Avangrid’s toolkit and will improve the resiliency and reliability of our wind and solar operations across the United States,” said Pedro Azagra, Avangrid CEO. “When we reduce downtime at our renewable energy assets, we ensure that clean energy keeps flowing to our customers. New, innovative pieces of equipment like this are key to delivering on Avangrid’s mission to accelerate the clean energy transition.”

Utility-scale transformers are an essential piece of the electric grid and manage the flow of energy from generating facilities to the consumer. When these machines fail, power generation must stop and replacing them can take 18 months or longer.

The new 168 megavolt-ampere (MVA) mobile transformer, custom-made for Avangrid and purchased from Hitachi Energy, can be deployed and installed within a couple months to any of Avangrid’s onshore wind and solar facilities due to the transformer’s multi-voltage capabilities. The transformer’s unique technology also allows for a low profile and the ability to withstand higher-than-normal transport accelerations - perfect for quick transport to its needed location. This will bring energy production back online while replacement equipment is procured.

“The clean energy transition relies heavily on partnerships and collaboration. Working with Avangrid to design this innovative and versatile transformer solution ensures clean, reliable energy when and where it’s needed most, even if a transformer is damaged after a major storm,” said Steve McKinney, Senior VP and Head of Hitachi Energy’s Transformer Business, North America. “As part of this collaboration with Avangrid, this unique engineering solution also incorporates the skills of our expert services team to support installation and commissioning for fast relief and restoration, which is especially critical in an industry facing longer than usual lead times for new equipment.”

Consisting of three modules, the transformer will be hauled on trailers with semi-trucks to the site. One of the most versatile transformers of its kind, it shows Avangrid’s dedication to reliability by covering the needs of any of their onshore renewable energy facilities throughout the U.S.

About Avangrid: Avangrid, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $45 billion in assets and operations in 24 U.S. states, Avangrid has two primary lines of business: networks and renewables. Through its networks business, Avangrid owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Through its renewables business, Avangrid owns and operates a portfolio of renewable energy generation facilities across the United States. Avangrid employs approximately 8,000 people and has been recognized by JUST Capital as one of the JUST 100 companies – a ranking of America’s best corporate citizens – in 2024 for the fourth consecutive year. In 2024, Avangrid ranked first among utilities and 12 overall. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2024 for the sixth consecutive year by the Ethisphere Institute. Avangrid is a member of the group of companies controlled by Iberdrola, S.A. For more information, visit www.avangrid.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240521767876/en/

Keaton Thomas

Keaton.thomas@avangrid.com

503-956-9621

Source: AVANGRID, Inc.

FAQ

What new equipment did Avangrid acquire to enhance its onshore operations?

Avangrid acquired a custom-built, state-of-the-art mobile transformer to enhance the resiliency and reliability of its onshore wind and solar operations.

How will the new mobile transformer affect Avangrid's operational downtime?

The new mobile transformer reduces downtime from two years to a couple of months in the event of a damaged transformer.

What is the capacity of Avangrid's new mobile transformer?

The mobile transformer has a capacity of 168 megavolt-amperes (MVA).

Who supplied Avangrid with the new mobile transformer?

The mobile transformer was supplied by Hitachi Energy.

How does the mobile transformer support Avangrid's mission?

The mobile transformer supports Avangrid's mission by reducing downtime and ensuring continuous clean energy flow, thus accelerating the clean energy transition.

What are the unique features of Avangrid's mobile transformer?

The unique features include multi-voltage capabilities, a low profile for easy transport, and resistance to higher transport accelerations.