Strategic Move to Bolster ABB’s Position in Growing Market for Renewable Power Conversion
ABB announced that it has signed an agreement to acquire the power electronics business of Gamesa Electric in Spain, a move that aims to strengthen ABB’s foothold in the rapidly expanding renewable power conversion market. The acquisition, which is subject to regulatory approvals and customary closing conditions, is expected to conclude in the second half of 2025. Financial terms of the deal have not been disclosed.
This acquisition will enhance ABB’s existing product and service offerings for renewable Original Equipment Manufacturers (OEMs) and end users, specifically in the areas of Doubly-Fed Induction Generator (DFIG) wind converters, industrial battery energy storage systems (BESS), and utility-scale solar power inverters. With this new portfolio and engineering assets, ABB looks to advance its profitable growth strategy within its Motion business area.
Acquisition complements ABB’s renewable power conversion portfolio adding significant market reach
Gamesa Electric’s power electronics division reported revenues of approximately 170 million euros for the fiscal year ending September 30, 2024. The transaction will also complement ABB’s expertise, bringing on board over 100 specialized engineers and two manufacturing facilities located in Madrid and Valencia, totaling around 400 employees, with resources also available in India, China, the United States, and Australia.
The International Energy Agency projects that renewable energy sources will make up nearly half of global electricity generation by 2030, with wind and solar photovoltaic (PV) systems expected to double their share to 30 percent. This growing market presents significant opportunities for ABB in modernizing and servicing the renewable energy installed base.
“This targeted acquisition aligns with our commitment to expand our portfolio for high-power renewable applications and contribute to productivity in a low-carbon world,” stated Chris Poynter, President of ABB’s System Drives division. “It will deepen our engineering capabilities for power conversion and grid connection while creating significant opportunities to service a large installed base.”
The acquisition is expected to add approximately 40 GW to ABB’s serviceable power conversion installed base, enabling the company to pursue new service, modernization, and repowering opportunities. The expertise of the Gamesa Electric team is also anticipated to augment the scope of ABB’s digital offerings. Furthermore, ABB plans to enter into a supply and services agreement with Siemens Gamesa as part of this strategic framework.
Through this acquisition, ABB is poised to enhance its customer relationships and capitalize on the growth of the power conversion market for renewables.
