Utilizing 24 D-VAR modules integrated with external smart-switched capacitor banks and proprietary AMSC controls that are optimized for wind farm applications, the system will be utilized to meet local grid interconnection requirements for the 206MW Collgar Wind Farm under construction in Western Australia.

AMSC expects to deliver the D-VAR equipment to Vestas within approximately 12 months. AMSC’s D-VAR systems provide voltage control, power factor correction and post-contingency reactive compensation to stabilize the power grid and prevents voltage collapse.

D-VAR reactive compensation systems are classified as Static Compensators, or ‘STATCOMs’, a member of the FACTS (Flexible AC-Transmission System) family of power electronic systems for alternating current (AC) power grids.

These smart grid systems are able to detect and instantaneously compensate for voltage disturbances by injecting leading or lagging reactive power into the power grid.

The Collgar Wind Farm, which is being developed jointly by Investec Bank (Australia) and Windlab Systems will be AMSC’s eighth D-VAR system deployment in Australia thus connecting nearly 600MW of wind power to Australia’s grid according to the Global Wind Energy Council.

Construction of the Collgar Wind Farm is scheduled to commence in the first half of 2010 and be completed by the end of 2011.

The current transaction is in line with Australia’s is increasing commitment to utilize clean, renewable energy to lower pollutants and meet rising power demands. A recently enacted law requires that 20% of all of Australia’s electricity be generated from renewable sources by 2020.