ALSTOM Grid has won two contracts worth a total of €57 million ($82.53 million) for five substation extensions and two new substations in Saudi Arabia.

The company is part of Alstom, a global leader in the world of power generation, power transmission and rail infrastructure.

The contracts have been awarded by the Saudi Electricity Company (SEC), the company responsible for the national grid network. The five substation extension projects are being carried out in Dirab, Huraymila, Al Hayit, Baqaa and Al Rosan, while the two new 132 kV/13.8 kV substations are located in Riyadh and are being built to improve energy supply to the King Faisal Hospital and Al Taawoon neighbourhood.

Alstom Grid’s scope of work includes complete project management right from initial design, procurement and logistics to commissioning, as well as the supply of 132 kV power transformers, capacitor banks, and automation solutions. The engineering, project management and development of the automation solutions will be carried out locally, enhancing Alstom Grid’s sustainable footprint in Saudi Arabia. The projects are expected to be completed by December 2012.

We are proud to further strengthen our partnership with SEC and confirm our commitment to the important Saudi Arabian market with these contracts,” says Henri Poupart-Lafarge, president of Alstom Grid.

“As one of the oldest and most experienced power equipment and solution supply companies, our global and local experts are focused on bringing reliable and effective solutions that will help SEC expand and strengthen its electrical grid.”

Saleh Al Onaizan, CEO of transmission at SEC, says: “Alstom Grid is one of our key partners for our growth and these two major contracts reinforce our strategic collaboration.”

Today, the existing total Saudi generation capacity is around 40 GW. Based on an expected seven to eight per cent growth in electrical demand, this will reach 70 GW by 2020. As a result, the authorities have embarked on a long-term, ambitious development plan to strengthen the kingdom’s energy infrastructure. Under this programme, Alstom Grid’s turnkey projects will increase the capacity and the efficiency of the electrical grid in the central part of the country.

These projects will also build on the company’s several references in the country, which include successful delivery of the world’s largest gas-insulated substation and the Gulf’s largest high-voltage direct current (HVDC) converter station (three by 600 MW) interconnecting the six-member GCC states.

The company’s parent firm is well known for building the fastest train and the highest capacity automated metro in the world. It provides turnkey integrated power plant solutions and associated services for a wide variety of energy sources, including hydro, nuclear, gas, coal and wind, and offers a wide range of solutions for power transmission, with a focus on smart grids.

The group employs 93,000 people in more than 70 countries. Alstom Grid, the newest sector of Alstom, formed following the recent acquisition of Areva’s transmission activities in June last year, has more than 100 years of expertise in electrical grids.

Whether for utilities or electro-intensive industries or facilitating the trading of energy, Alstom Grid brings power to its customers’ projects. The company ranks among the top three in electrical transmission sector with a sales turnover of approximately €3.5 billion ($5.11 billion) in 2009. It has 20,000 employees and over 90 manufacturing and engineering sites worldwide. Its four main business areas are products, systems, automation and service.

Alstom Grid offers products, services and integrated energy management solutions across the full energy value chain – from power generation, through transmission and distribution grids and to the large end-user.