Alstom reinforces global footprint with two new hydro
contracts in Europe and Latin America

Alstom Hydro contract helps Portugal increase its
share in renewable energy

Alstom Hydro*, in consortium with its Portuguese partners
EFACEC Engenharia S.A. and SMM, has won a 94 million euro
contract with Portuguese utility EDP Gestão da
Produção de Energia SA to extend the Alqueva hydro
power station at Villa de Beja, Alentejo, Portugal. Due for
completion in early 2012, the so-called Alqueva II project is
in line with the Portuguese governments plan to increase
the countrys share of renewable energies.

With this new contract, Alstom will supply, deliver and
install 2 x 130 MW reversible turbine-generator units and other
mechanical equipment to the plant, increasing total power
output to 520 MW. EFACEC Engenharia S.A. and SMM will be
responsible for the balance of plant and erection at the site
respectively. The Alqueva pumped storage** power plant, in
operation since 2004, currently employs 2 x 130 MW reversible
turbine-generator units, also supplied by Alstom.

Exploring the potential of hydropower is a key priority for
the Portuguese government, which has one of the most ambitious
renewable energy targets in Europe. An ongoing investment
programme, National Programme of Dams with High
Hydropower Potential, plans to construct 10 new dams and
exploit 70% of the countrys hydro potential by 2020.
Power demand in Portugal is steadily increasing at a rate of
some 3.5% per year, forecast to rise to an average of 5% per
year after 2010.

We are delighted to have been chosen a second time by
EDP as equipment suppliers for Alqueva, which is endorsed by
Portugals national hydropower investment plan. It
demonstrates the ability of Alstom to provide efficient,
reliable and cost effective solutions for pumped storage power
plant, said Philippe Cochet, Senior Vice President,
Alstom Hydro.

New contract in Panama

Alstom Hydro has won a contract with Suez Energy Central
America (SECA) worth over 60 million euros to supply
electromechanical equipment to three new hydro power plants on
the Chiriqui River in the province of Chiriqui, Panama.

Under the terms of the contract, awarded in August to a
consortium led by Alstom Hydro, the company will supply the
turbines, generators and hydromechanical and lifting equipment
to power plants Gualaca (two turbine-generator units of 13 MW
each), Lorena (2 x 17.4 MW) and Prudencia (2 x 28.7 MW), with
delivery scheduled to take place from August 2009
February 2011.

The equipment will be manufactured at Alstom Hydros
factory in Taubaté, Brazil, one of the companys
main industrial hubs. The site has previously supplied
equipment to the hydropower plants at Itaipú ( 12,000 + 1,
400 MW), Tucuruí (4,200 + 4,200 MW) and Porto Primavera
(1,814 MW).

Alstom has been involved in Panamas hydro industry
since the 1970s, when the hydropower plant La Estrella came
onstream. Other key historical references are Esti (2 x 60MW),
Bayano (3 x 87MW), Edwin Fabrega Fortuna (3 x 100MW), and
Changuinola (2 x 103MW under construction).

This contract strengthens Alstoms position in a
market where it has been operating for more than thirty years.
Hydroelectric installed capacity in Latin America, including
Brazil and Paraguay, is 143.8 GW, of which Alstom currently
holds a 25% share. Philippe Cochet, Senior Vice President,
Alstom Hydro, said : With this project Alstom Hydro
confirms its commitment to secure power supply to the region
and to continue working on integrated solutions supporting the
fast development of the electricity market.

*Alstom Hydro, a joint venture between Alstom and
Bouygues, is the world leader in the supply of hydropower
equipment and services. Alstom Hydro offers the broadest
range of products and solutions that cover all hydropower
schemes, from large to small, from run-of-river to
pumped-storage, for new installations, refurbishment,
upgrading and services. The joint venture has 5500 employees
in 19 countries.



**Pumped storage is a method used to increase energy
efficiency and employs reversible turbines which can be used
in two modes; either to generate electricity, or to pump
spent water back into the reservoir, where it is stored and
reused during peak electricity production hours. Pumped
storage can recover up to 75% of energy consumed in the
overall energy cycle.

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