Alstom Grid has announced it has won two contracts from Saudi Electricity Company (SEC) to set up five substation extensions and two new substations.

The contracts are worth a total of 57 million euros ($82.2 million). Alstom Grid’s scope includes complete project management from initial design, procurement and logistics to commissioning as well as the supply of 132 kV power transformers, capacitor banks and automation solutions. The five substation extensions are located in Dirab, Huraymila, Al-Hayit, Baqaa and Al-Rosan. The two new 132 kV/13.8 kV substations, both located in Riyadh, will improve energy supply to King Faisal Hospital and the Al-Taawoon neighborhood.

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.

Currently, the existing total Saudi generation capacity is around 40 GW. Based on an expected 7-8 per cent growth in electrical demand, this will reach 70 GW by 2020. As a result, the authorities embarked on a long-term, ambitious development plan to strengthen the kingdom’s energy infrastructure. Under this programme, the Alstom Grid turnkey projects will increase the capacity and efficiency of the electrical grid in the central part of the country.

Henri Poupart-Lafarge, president of Alstom Grid, commented: '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, Transmission Co at SEC, said, 'Alstom Grid is one of our key partners for our growth and these two major contracts reinforce our strategic collaboration.'

These projects will build on Alstom Grid’s several references in the country, which include the successful delivery of the world’s largest gas-insulated substation and the Gulf’s largest high voltage direct current (HVDC) converter station – 3 x 600 MW - interconnecting the the GCC states.