ABB plans to complete design, supply, install and commission the turnkey solution by 2013.
The installation of a static var compensator (SVC) will provide reactive power support to mitigate voltage instabilities and help prevent black-outs.
ABB Power Systems division head Martin Gross said the solution will improve grid stability, improve power quality and help secure power supply.
"The installation is an important component of SEC’s overall power grid expansion program," Gross said.
SVC is part of ABB’s family of flexible alternating current transmission systems technologies, which improve the capacity, security and flexibility of power transmission systems, and makes a valuable contribution to the development of smarter grids.
SEC is the Saudi Arebia’s national power transmission and distribution operator.