The firm will supply a high-voltage direct current (HVDC) transmission system, which could transmit 100 megawatt (MW) of electricity with minimum losses across a distance of 158km.
The Ã…land archipelago, an autonomous Finnish province, currently receives its power through an alternating current (AC) cable from local renewable sources and Sweden.
Under the order, ABB will design, engineer, supply and commission two 100MW, ±80 kilovolt (kV) HVDC Light converter stations, one in Nådendal, Finland and the other in Ytterby, Åland.
Two 80kV submarine cables, each 158km long, are expected to enable efficient power transmission. The link is likely to begin operating in 2015.
ABB Power Systems division head Brice Koch noted that this power link will enable the integration of more renewable energy and provide grid reliability as well power supply security to Ã…land.
"Our in-house manufacturing capability for converters, cables and semiconductors – the key components for HVDC – combined with our global track record will help us to deliver a best-in-class solution," Koch added.
Once the link become operational, the existing fossil fueled power generation backup facility in Ã…land will be closed down.
