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Avangrid acquires mobile transformer to enhance grid reliability

EditorBrando Bricchi
Published 21/05/2024, 18:08
AGR
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PORTLAND, Ore. - Avangrid, Inc. (NYSE: NYSE:AGR), a sustainable energy company, has announced the acquisition of a cutting-edge mobile transformer from Hitachi (OTC:HTHIY) Energy. This equipment is designed to swiftly restore power at Avangrid's renewable energy sites across the United States in the event of transformer damage, significantly reducing the usual lengthy downtime.

The new 168 megavolt-ampere (MVA) transformer can be deployed to any of Avangrid's onshore wind and solar facilities within months, a stark contrast to the traditional two-year lead time for a replacement transformer. This innovation is particularly critical given the current extended lead times for new equipment in the industry.

Pedro Azagra, Avangrid CEO, emphasized the significance of the mobile transformer in bolstering the resilience and reliability of the company's operations, stating that it is crucial for maintaining the supply of clean energy to customers. The transformer's multi-voltage capabilities and durable design allow for rapid transportation and installation, ensuring that energy production can resume promptly while a permanent replacement is being sourced.

Steve McKinney, Senior VP and Head of Hitachi Energy's Transformer Business in North America, highlighted the collaborative effort in designing this versatile solution, which is intended to provide reliable energy even in the aftermath of major storms.

The mobile transformer consists of three modules that can be transported on trailers, making it one of the most adaptable transformers available and demonstrating Avangrid's commitment to reliability.

Avangrid, with operations in 24 U.S. states, aims to lead the sustainable energy sector in the country. The company operates through two primary lines of business: networks and renewables, and has been recognized for its corporate citizenship and ethical practices.

This acquisition is based on a press release statement and reflects Avangrid's ongoing mission to accelerate the transition to clean energy while ensuring the stability of its energy infrastructure.

InvestingPro Insights

Avangrid, Inc. (NYSE: AGR) is making significant strides in enhancing the resilience of its energy infrastructure with the acquisition of a state-of-the-art mobile transformer. This move is not just a step forward in operational efficiency but also reflects on Avangrid's financial health and strategic positioning in the sustainable energy market. According to InvestingPro data, Avangrid has a Market Cap of approximately $13.93 billion USD, showcasing its substantial presence in the industry.

InvestingPro Tips indicate that Avangrid is trading at a low Price / Book multiple of 0.7 as of the last twelve months ending Q1 2024. This could signal a potentially undervalued stock, which might interest value-oriented investors. Moreover, the company's P/E Ratio stands at 15.58, aligning closely with the adjusted P/E Ratio for the same period. This suggests that the company is trading at a reasonable valuation relative to its earnings.

For investors looking at income-generating assets, Avangrid's Dividend Yield as of early 2024 is an attractive 4.88%, coupled with a solid track record of profitability over the last twelve months. These financial metrics, particularly the dividend yield, are relevant for those who prioritize steady income streams from their investments.

To uncover additional InvestingPro Tips, which could further inform investment decisions, visit https://www.investing.com/pro/AGR. There are more tips available, providing a deeper dive into Avangrid's financials and market performance. To take advantage of these insights, use the coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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