General Electric Company (GE) Awarded Contract to Supply Eurotunnel with Static Synchronous Compensator

General Electric Company (NYSE:GE) announced that it was awarded a contract by the world’s leading and busiest rolling motorway, Eurotunnel, to supply a Static Synchronous Compensator (STATCOM). The companies plan to improve the stabilization of power supply on the catenary traction system of the Channel Tunnel. The new system will be stationed in Folkestone, Kent. Once complete, this project will be the world’s largest STATCOM application connected to a catenary traction system.

With almost 400 trains per day and  traffic forecast to increase significantly within the next few years, Eurotunnel needs to increase the power and stability of its network to ensure a constant flow of traffic and in particular to meet peak demand, when eight trains are running simultaneously inside the Channel Tunnel.

Michel Boudoussier, Chief Corporate Officer at Getlink commented “Our choice to go with GE’s STATCOM will put Eurotunnel at the forefront of electrical regulation technology for new generation trains (Velaro). It will also enable us to continue to purchase electricity where it is least expensive.”

GE Power’s Grid Solutions will custom design and supply the entire STATCOM system, which will provide Eurotunnel with reactive power compensation and an improved range of operational voltage, leading to faster response times. Additionally, this technology has a smaller physical footprint than traditional SVC systems. STATCOM is a flexible solution which will help Eurotunnel navigate a highly dynamic grid and ensure optimal performance of their assets.

“Providing a stable and consistent flow of electricity to this vital link is critical. We are excited to help upgrade the traction network for the Channel Tunnel to ensure that millions of passengers continue to travel safely and efficiently between the UK and France,” said Rajendra Iyer, GE Power’s Grid Solutions FACTS & HVDC General Manager. “GE’s STATCOM technology is the prime solution to ensure power stability in the Tunnel and help navigate the complex environment that our customers are facing today.”

Analyst Ratings

On the ratings front, General Electric has been the subject of a number of recent research reports. In a report issued on March 13, J.P. Morgan analyst Stephen Tusa maintained a Sell rating on GE, with a price target of $11, which reflects a potential downside of -21% from last closing price. Separately, on March 7, Deutsche Bank’s John G. Inch maintained a Sell rating on the stock and has a price target of $13.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Stephen Tusa and John G. Inch have a yearly average return of 9.6% and 13.9% respectively. Tusa has a success rate of 75% and is ranked #649 out of 4779 analysts, while Inch has a success rate of 80% and is ranked #684.

Overall, 3 research analysts have rated the stock with a Sell rating, 9 research analysts have assigned a Hold rating and 2 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $15.90 which is 14.6% above where the stock closed yesterday.

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