ABB Expands Renewable Energy Capabilities

Swiss technology leader ABB has acquired Gamesa Electric, a specialist in solar PV inverters and power conversion systems (PCS). The deal, finalized in late 2024, enhances ABB’s industrial automation and factory automation portfolio. Although the financial details remain undisclosed, the acquisition signals ABB’s renewed commitment to renewable energy integration.

Strategic Assets Across Global Markets

The acquisition includes converter manufacturing facilities in Madrid and Valencia, Spain, as well as operational resources in India, China, the United States, and Australia. These assets strengthen ABB’s global supply chain for control systems and power electronics, ensuring reliable delivery for large-scale renewable projects.

Expertise in Wind and Solar Converters

Gamesa Electric brings decades of experience in wind power converters, generators, and solar PV systems. ABB estimates that the deal increases its serviceable installed wind converter capacity by approximately 46 GW. This expansion supports ABB’s PLC and DCS solutions for renewable energy plants, where precise control systems are essential.

Responding to Global Renewable Growth

ABB emphasized that the acquisition aligns with the accelerating demand for renewable energy worldwide. The International Energy Agency (IEA) recently projected a 60% increase in renewable generation between 2024 and 2030. Therefore, ABB’s move positions the company to capture predictable demand for inverters and PCS in solar, wind, and battery energy storage projects.

Competitive Landscape in Solar Inverters

The solar inverter market remains highly competitive, with Chinese manufacturers challenging Western firms such as SMA Solar, SolarEdge, and Enphase Energy. European trade association SolarPower Europe describes inverters as the “brain” of solar arrays, highlighting their role in digitalized factory automation and advanced control systems. ABB’s re-entry into this sector, after selling its inverter business to FIMER in 2020, demonstrates strategic foresight.

Industry Comparisons and Market Trends

Hitachi Energy also acquired a PCS business earlier this year, underscoring the importance of power conversion technology in industrial automation. These moves reflect a broader industry trend: global players are consolidating expertise to fill portfolio gaps and meet rising demand for renewable integration.

Author’s Commentary on Industrial Automation Impact

ABB’s acquisition is more than a renewable energy play—it is an industrial automation strategy. By combining Gamesa Electric’s technology with ABB’s PLC, DCS, and motion control systems, ABB can deliver end-to-end solutions for smart factories and energy plants. In my view, this integration strengthens ABB’s competitiveness against rivals who focus solely on component manufacturing.

Application Scenarios and Solutions

• Solar PV Plants: ABB’s PCS and inverters ensure stable grid integration and optimized energy yield.

• Battery Energy Storage Systems (BESS): Control systems coordinate charging and discharging cycles for industrial-scale storage.

• Wind Power Plants: ABB’s expanded converter portfolio supports efficient turbine operation and grid stability.

• Smart Factories: PLC and DCS integration with renewable assets enables seamless factory automation and energy management.