September 03, 2012

Global Transmission Weekly Update on the global electricity transmission industry

INSIDE THIS ISSUE

NORTH AMERICA 2 PJM cancels PATH and MAPP projects 2 Rock Island Clean Line project faces opposition in Illinois 2 Opposition against Champlain-Hudson Power Express transmission line growing 2 Clean Line hosts public meetings for Grain Belt Express line 3 Entergy Arkansas files testimony with state PSC 3 Entergy proposal of shifting ICT services to MISO attracts strong opposition 3 MISO approves scaled down version of Bay Lake Project 3 Enbridge repays USD151 million federal loan 4 I-5 Corridor to cost USD12 million to tax payers 4 NWE and BPA announce transmission upgrades in Montana 4 CWL proposes third route option for Mill Creek substation transmission lines 4 TVA hosts public meeting for 161 kV line in Mississippi 5 MEC selects route for 69 kV transmission line 5 PPM files request with Texas PUC against high congestion cost 5 SDG&E’s ECO project receives approval from DoI 5 PAR Electrical bags high voltage contracts from SCE 5 ABB receives USD60 million HVDC contract from AEP 6

LATIN AMERICA 6 Brazilian bank extends BRL1 billion loan for HPP lines 6 Brazilian power utility to spend BRL700 million to link wind projects 6 Argentinean regulator to hold hearing for 500 kV Santa Fe project 7 Chilean power company submits environmental request for 220 kV project 7 Chilean solar company submits environmental declaration for 110 kV line 7 Mexican energy regulator formulates smart grid plan 7 Venezuelan power utility to auction 400 kV line in Bolivar 8

ASIA PACIFIC 8 Qingdao Hanhe Cable wins CNY234 million SGCC project 8 PGCIL plans aerial patrolling of transmission lines in India 8 Alstom T&D India wins EUR400 million PGCIL contract 8 Vietnam begins construction on 220 kV line in Bac Giang 8 Afghanistan launches tenders for 220 kV transmission line 9

EUROPE 9 National Grid and Statnett finalise plans for UK-Norway interconnector 9 French grid operator RTE seeks bids for 420 kV circuit breakers 9 Austrian TSO to invest EUR320 million to link wind farms 9 Austrian Power Grid awards 220 kV line works to Alstom 10 Svenska Kraftnat commissions 400 kV line in Sweden 10 Swedish TSO launches pre-qualification bids for 400 kV lines 10 Poland launches tenders for 400 kV transmission line 10

MIDDLE EAST AND AFRICA 10 Galfar Engineering wins USD24.7 million contract in Oman 10 Spanish SEMI wind high voltage contracts in Morocco 10 Liberia and World Bank sign West Africa Power Pool Pact 10 KETRACO launches tender for construction of Kenya-Uganda line 11 Infrastructure major Fedders Lloyd wins USD18.6 million contract in Nigeria 11

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NORTH AMERICA from wind farms located in northwest Iowa and surrounding states, across the states of Iowa and Illinois, to a point 50 miles (80.5 km) south of PJM cancels PATH and MAPP projects Chicago. Here, it will interconnect with existing PJM Interconnection has cancelled the Mid-Atlantic transmission lines that feed power to markets in the Power Pathway (MAPP) and the Potomac eastern United States. Flora-based Southwire Appalachian Transmission Highline (PATH) Company has been awarded the contract to supply projects and has also removed them from its cable for the project. regional transmission plans. Earlier, on August 9, The company offered about USD7,000 per mile 2012, the regional transmission organisation (per 1.61 km) to the counties in Iowa during the recommended the cancelation of these projects due meeting. A similar offer was presented to Bureau to their inability to meet financial as well as County in June 2012, but so far none of the counties environmental standards, and due to the public have accepted or shown interest in accepting the policy of integration of renewable energy into offer. Illinois Farm Bureau has also suggested transmission project plans. passing the line along the Interstate 80 instead of PATH, proposed by American Electric Power farm land. However, the company was avoiding the (AEP) and Allegheny Energy, proposed a 244 mile Interstate stretch as it involves negotiating with (392 km) long, 765 kV power line from the John federal government. Amos substation near St. Albans, West Virginia, Even after two years of filing petitions with through Frederick, Clarke and Loudoun counties in Illinois Commerce Commission (ICC), the company Virginia to the proposed Kemptown substation in has not been able to finalise the route for the project. Frederick County, Maryland. The developers have It has therefore decided to withdraw its petition of already spent about USD225 million as early project becoming a public regulated utility and has instead expenses. Out of this, about USD95 million has been decided to file a new petition wherein it will received back by the developers from the PJM indicate the preferred and alternative routes of the ratepayers under a 12.4 per cent return on equity project. It will also notify the landowners regarding incentive awarded by the Federal Energy the same. Regulatory Commission (FERC) to the project. If the developers succeed in proving that the reasons Meanwhile, the representatives of Clean Line behind the abandonment of the line were all Energy have discussed their plans to implement the external, the rest of the amount of USD130 million project by 2017 with Cedar Rapids business leaders. can also be recovered through the incentive schemes. Opposition against Champlain-Hudson Power The MAPP project was proposed by Pepco Express transmission line growing Holdings Incorporated (PHI). It included a 500 kV transmission line from northern Virginia to Opposition against the construction of the proposed southern New Jersey. In August 2011, PJM USD1.9 million New York-Canada interconnection postponed the in-service date of the MAPP project or the Champlain-Hudson Power Express from 2015 to 2019-20, following which PHI transmission line is increasing due to its expected requested the Maryland Public Service Commission impact on green jobs in New York and its failure to (PSC) and Virginia State Corporation Commission provide the promised USD60 million annual cost (SCC) to temporarily delay the review for the saving to consumers. The recent list of opponents project. includes a group of 13 state legislators–12 Republicans and one Democrat. The project’s 333 mile (536 km), high voltage power line from Quebec Rock Island Clean Line project faces opposition in in Canada to Champlain Valley in New York City in Illinois the US will help carry around 1,000 MW of wind The residents of Mendota have opposed the USD1.7 and hydro power from southern Quebec to New billion Rock Island Clean Line project proposed by York City and Fairfield County. The project also Clean Line Energy at a recent public meeting held in includes a converter station and a 3-mile (4.83 km) Mendota, Illinois. The company is constructing a long high voltage alternating current (HVAC) cable 500 mile (805 km), 600 kV direct current circuit from the Astoria Annex to the Rainey transmission line to transfer electricity generated substation in Astoria, New York.

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According to opponents, more transmission the company prefers MISO as it provides more lines need to be developed within the country to benefits. transmit the already available 37 GW unused power. The proposed line is expected to discourage Entergy proposal of shifting ICT services to MISO domestic investment in clean energy generation. attracts strong opposition

The project is also facing opposition due to its Southwest Power Pool (SPP) is opposing Entergy non-availability to users along the route and as a Corporation’s proposal of shifting the independent result will not be available to capital district coordinator of transmission (ICT) functions to consumers. In their defense, the developers argued MISO, which were currently undertaken by SPP. As earlier that the proposed line would reduce the per Entergy, the transfer of ICT duties to MISO power price by USD650 million a year, but that the would not cause any reliability issues, and in fact project’s impact on reducing green jobs in the area is will offer several other benefits to the company. But, projected to outweigh this saving. SPP is insisting that it be allowed to continue performing ICT functions until Entergy joins MISO, Clean Line hosts public meetings for Grain Belt as Entergy’s membership to the latter is still to be Express line approved by the FERC. It is also compelling Entergy to join SPP as it shares strong interconnections with Clean Line Energy is hosting public meetings for the the Pool. Grain Belt Express Clean Line project to identify the possibility of providing opportunities to local The New Orleans City Council has also vendors in project construction works. The 700 mile requested the FERC to reject Entergy’s ICT proposal (1,127 km), 600 kV high voltage direct current as it may increase costs and reduce ICT (HVDC) transmission line, which is planned to run performance. Further, Energy is also facing from Ford County, Kansas to south of St. Louis, opposition from Dow Chemical Company which Missouri, while possibly passing Reno County, now relies on Entergy's transmission system to sell will also be extended to south of Terre Haute to excess power, whereas NRG Energy Incorporated Sullivan, Indiana. At Sullivan, the line would link has supported Entergy’s proposal. into existing high voltage transmission lines for further distribution to the east, such as to New MISO approves scaled down version of Bay Lake Jersey and Washington, D.C. The line will have the Project capacity to transfer 3,500 MW of electricity. MISO has approved the significant scaled down The company is looking for local businesses to version of the Bay Lake Project also known as the provide services related to transmission Morgan Green Bay Project, proposed by the construction, geotechnical engineering, surveys, American Transmission Company (ATC). Earlier clearing, utility potholing, trucking, and fueling. MISO questioned the requirement of this lengthy line and thus revised the plan of the project. Entergy Arkansas files testimony with state PSC Initially the developer proposed the construction of a 345 kV, 175 mile (281.7 km) Entergy Arkansas Incorporated, a holding company transmission line from a new station in Green Bay to of Entergy Corporative, has filed testimony with an expanded substation near Ishpeming, Michigan, Arkansas PSC, indentifying all the criteria specified at an estimated cost of between USD470-705 million by the state PSC for granting approval for Midwest under the project. In addition, three 138 kV lines, Independent Transmission System Operator (MISO) one 40 mile (64.4 km) line from the new Green Bay membership. This confirms the utility commitment area to the Morgan substation near Oconto Falls, of joining MISO. Wisconsin, and two 60 mile (97 km) transmission lines between Menominee County and the The company applied for the MISO membership Escanaba, Michigan area at an estimated cost of in 2005 to withdraw from the current power pooling USD125-190 million were also planned. arrangement with the other Entergy utilities. It is required to prepare an alternative power supply But now as per the plan approved by MISO, a 40 process by the end of 2013. Given the ambiguity mile (64.4 km), 345 kV line from Green Bay regarding the state PSC approval for joining MISO, northeast to Morgan, Wisconsin, and a single 138 kV SPP offered its membership to the utility before, but line stretching from eastern Wisconsin into the

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Upper Peninsula town of Escanaba will be USD317 million to USD407 million project. The constructed under the project. This also scaled other three routes proposed by BPA are expected to down the cost of the project to USD280 million from cost between USD4 million to USD8 million. USD566 million. But the Citizens Utility Board (CUB) of NWE and BPA announce transmission upgrades in Wisconsin and the Environmental Law and Policy Montana Center (ELPC) are opposing the payment of about NorthWestern Energy (NWE) and Bonneville Power 90 per cent of the infrastructure cost by Wisconsin Administration (BPA) are planning to upgrade their ratepayers for the line serving Michigan citizens. transmission networks in Montana. NWE is The transmission line plan still needs to be planning to add about 600 MW capacity to its approved by Wisconsin PSC and Michigan Colstrip Transmission System from Colstrip to regulators. Townsend, where it interconnects with BPA‘s system, while BPA is looking to upgrade its Enbridge repays USD151 million federal loan transmission line which connects to the Colstrip System at Townsend and runs into Northern Idaho. Enbridge Incorporated has announced the BPA is also proposing a new substation near St. repayment of about USD151 million of the USD161 Regis or Missoula, and improvements to its million Transmission Infrastructure Program (TIP) Garrison substation. loan granted in 2009 by the Western Area Power Administration (WAPA), an agency of the US Gaelectric Company is planning to build four Department of Energy (DoE) for the Montana- wind projects in Harlowton, Columbus, Big Timber Alberta Tie Line (MATL) project. and Geyser to provide energy to customers in Oregon, Washington and eventually California, but The project entails construction of a 214 mile is not able to develop them due to lack of capacity (344 km), 230 kV AC line to link Canadian and US on the existing transmission lines. As per Gaelectric, electricity markets. The merchant power the ratepayers of Montana are not willing to pay for transmission line will link Lethbridge in Alberta on any line upgradation for exporting power. But NWE the Canadian side to Great Falls in Montana on the and BPA have reported that they will not go ahead US side. Once operational, the project would be with the upgradation works until Gaelectric capable of transporting 300 MW of electricity. The commits to using the transmission line for line is expected to be placed in-service in the fourth evacuation of power. quarter of 2012, with the expansion expected to be completed by the end of 2014. CWL proposes third route option for Mill Creek I-5 Corridor to cost USD12 million to tax payers substation transmission lines

The I-5 Corridor Reinforcement Project line is Columbia Water and Light (CWL) Department has expected to cost about USD12 million annually to proposed third route option for the three 161 kV the people who do not live on the proposed route, transmission lines it is planning to build to connect but will have to pay the extra property tax if the line Mill Creek’s electric substation to the city’s power follows the west route. The project involves grid. Under this third route or Option B-2, it has construction of a new 500 kV transmission line been suggested to push the line farther west and between two new substations, in the Castle Rock run it across city-owned land in the Missouri- area of Washington and Troutdale, Oregon along Kansas-Texas (MKT) Trail corridor. the I-5 corridor. It was originally proposed that the Earlier, two options (called A and B) were line have 52 segments, but in December 2009 the suggested by the company. Under Option A, one developers decided to eliminate four segments 161 kV line from the Grindstone substation along based on limiting factors identified during the Grindstone Parkway and across Providence Road to scoping and additional study. The remaining the Mill Creek substation, one from the Perche segments include several existing BPA right-of-way Creek substation along Scott and Nifong boulevards (RoW). and another from McBaine along Route K and The developer of the line, BPA is expected to Providence were proposed. Under Option B, it was announce the final route by the end of 2012 along suggested to push the McBaine line to the west with an environment impact statement (EIS) for the along Route K and Howard Orchard Road,

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connecting it to the Perche Creek substation. It also PPM files request with Texas PUC against high would use existing 69 kV lines between the Hinkson congestion cost and Grindstone substations. Another two lines Texas-based Priority Power Management (PPM), an would run from the Mill Creek substation to independent energy management and consulting Providence Road near Nifong and along Grindstone services firm, has filed a request with the Public Parkway. Utility Commission of Texas (PUC) on behalf of its The local residents are opposing the routes due several consumers in the west load zone of the to their close proximity to their properties. But they Electric Reliability Council of Texas (ERCOT) for an still prefer Options B and B-2 over Option A because emergency inquiry against the extremely high cost of the lesser expected impact on their properties. of congestion. Option B-2 would increase the length of the line by The company has filed this request for 22 per cent and thus the project cost also, and has highlighting the growing congestion problem in the therefore scored lower on the decision matrix. The area and has appealed to the PUC for taking some company is planning to hold a public meeting on corrective measures. This high cost is affecting the the proposed routes by the end of 2012 and to economic viability of the area, especially oil and gas finalise the route by March 2013. producers which are the lifeline of the West Texas economy. As per the company, proper TVA hosts public meeting for 161 kV line in determination of price signals of the nodal market Mississippi structure can reduce the congestion cost. Tennessee Valley Authority (TVA) is hosting a public meeting for the 161 kV transmission project SDG&E’s ECO project receives approval from DoI proposed by the company in Tupelo, Mississippi on The US Department of Interior (DoI) has approved a September 13, 2012 to receive comments on the 0.8 mile (1.28 km) stretch of the 14 mile (22.54 km), proposed routes for the line. 138 kV transmission line, which was proposed by Under this project, a 12-15 mile (19.32-21.15 km), San Diego Gas & Electric (SDG&E) to connect the 161 kV line connection will be built between the 500 new East County (ECO) substation with the existing kV Union substation and the 161 kV Tupelo Boulevard substation in California. substation in Mississippi. Some part of the line will The project also entails construction of the ECO run parallel to the existing line, while the rest will substation in Jacumba between Interstate 8 and the be placed using steel pole structures centred on a US-Mexico Border to connect the Tule Wind farm in 100-foot RoW. The construction of the project is the McCain Valley and Energía Sierra Juarez wind expected to start in 2014 and to be in-service by farm in northern Baja California with the Southwest 2016. Powerlink line. The company will also rebuild and modernise the 50-year old Boulevard substation to MEC selects route for 69 kV transmission line connect several wind farm projects. The project has Mountain Electric Cooperative (MEC) has selected already attracted significant local opposition from the route for its 69 kV, 4.15 mile (7.3 km) residents of Jacumba and Boulevard, California, due transmission line in Sugar Mountain in Avery to increasing industrialisation of the rural part of the County out of 12 alternatives. The USD3 million to state. USD4 million transmission line will connect the future substation in the Village of Sugar Mountain PAR Electrical bags high voltage contracts from SCE to the 69 kV electrical grid near its Banner Elk Southern California Edison (SCE) has awarded a substation. contract to install transmission infrastructure of the The line route follows Banner Creek Road and Eldorado-Ivanpah transmission project to PAR up along property near Lutherock National Electrical Contractors Incorporated, a subsidiary of Heritage (LNA) and thus avoids the LNA area Quanta Services Incorporated. The project includes which contains numerous rare flora and fauna. Now construction of a 220/115 kV substation in San the company is planning to acquire 75-foot RoW at Bernardino County, California along with fair market values under eminent domain statues. upgradation of the Eldorado substation. It also The line is using one mile (1.61 km) of existing RoW entails replacement of a portion of SCE’s existing and requires about 3 miles (4.83 km) of RoW. 115 kV line with a 35 mile (56.35 km) double-circuit

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220 kV transmission line, connecting the new MW Santo Antonio hydroelectric power plants Ivanpah substation to SCE’s Eldorado substation, (HPPs). near Boulder City, Nevada. Under this project, fibre Norte Brasil Transmissora de Energia, a special optic and microwave communication equipment purpose entity (SPE) of the Integração Norte Brasil will also be installed to connect the project to SCE’s consortium [comprising of state-owned Centrais existing telecommunications system. Eletricas Brasileiras (Eletrobras) subsidiaries PAR Electrical has also received a contract to Centrais Elétricas do Norte do Brasil S.A. construct the Devers-Palo Verde No. 2 (DPV2) (Eletronorte) and Eletrosul Centrais Eletricas S.A. transmission project from SCE. The DPV2 project (Eletrosul), Spanish group Abengoa and includes construction of a 500 kV, 111 mile (178.71 engineering firm Andrade Gutierrez] was awarded km) transmission line between SCE’s Devers the contract to construct the 2,375 long, 600 kV line substation near Palm Springs and the new Colorado to link the Madeira River Complex comprising four River substation and another 42 mile (67.62 km) line dams aggregating 6.5 GW capacity to Brazil’s of the same voltage between Devers substation and Sistema Interligado Nacional (SIN) or National SCE’s Valley substation in Menifee. These would be Interconnected System by power regulator Agência parallel to the existing Devers-Palo Verde Nacional de Energia Elétrica (Aneel) in November transmission line. The project also include the 2008. The BRL1.98 billion transmission line is construction of a 500/220 kV Colorado River included in the government's Growth Acceleration substation near Blythe. Programme, PAC. The SPE also plans to raise BRL200 million by issuing infrastructure corporate ABB receives USD60 million HVDC contract from AEP bonds. The line is expected to be complete in the first half of 2013. ABB has received an order worth USD60 million from AEP for replacing a 30-year old HVDC back- The complete transmission infrastructure for the to-back converter station in Texas. ABB will be Madeira project comprises seven transmission lines responsible for the engineering, supply, installation with a total length of 2,375 km (in both directions), and commissioning of about 220 MW of the two substations and six converter stations. The total transmission system. This new facility would have investment envisaged in the construction of the black-start capability, which will help in grid entire transmission system of the Madeira restoration during the event of power outages. hydroelectric power plants (HPPs) is estimated at Further, the company will also supply converter USD4.18 billion. Other transmission facilities valves along with MACH2 advanced control and include the 230 kV, 17.3 km Coletora Porto Velho- protection systems on a turnkey basis to help AEP Porto Velho transmission line and the 500/230 kV in meeting stringent system performance Coletora Porto Velho substation; the 600 kV, 2,375 requirements. km Coletora Porto Velho-Araraquara 2 transmission line No. 1; the 500 kV, 360 km Cuiaba-Ribeiraozinho AEP will keep the existing converter station transmission line; and the 500 kV, 242 km operational during construction of the new station Ribeiraozinho-Rio Verde Norte transmission line. in order to ensure security of power supply. The new transmission station is expected to be (BRL 1=USD0.5) operational in 2014. Brazilian power utility to spend BRL700 million to link wind projects

LATIN AMERICA Brazilian power regulator Aneel has approved power utility Eletrosul’s BRL700 million Brazilian bank extends BRL1 billion loan for HPP transmission project which aims to link wind farms lines in the southern state of Rio Grande do Sul to the national interconnected network SIN. Brazil's national bank Banco Nacional de Desenvolvimento Economico e Social (BNDES) has The project, which was tendered in the national approved a BRL1.05 billion loan to Norte Brasil transmission auction held in June 2012, entails Transmissora de Energia for the construction of the construction of a 490 km line to connect nine coastal Porto Velho-Araraquara transmission line No. 2 to wind farms to the national grid. It also includes evacuate power from the 3,450 MW Jirau and 3,150 construction of three new substations and

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expansion of an existing substation. Though the complete the analyses of the environmental project’s completion deadline set by Aneel is two declaration by November 26, 2012. years, Eletrosul plans to complete construction works by early 2014, in line with commissioning of Chilean solar company submits environmental the wind farms. Eletrosul's wind farm plans include declaration for 110 kV line the construction of two complexes aggregating 402 MW in the municipalities of Santa Vitória do Palmar Chilean solar power company Desarrollo Energético and Chuí. The transmission facility will also connect Solar Chile SpA has submitted an EIS with the other wind projects expected to come up in the country’s environmental evaluation service SEA for region. implementing a 110 kV transmission line in the Atacama region. Constructor consortium Transmissora Sul Litorânea de Energia (TSLE), a joint venture The USD4.5 million project involves the between Eletrosul and Companhia Estadual de construction of a 24 km long transmission line to Geração e Transmissão de Energia Elétrica (CEEE- connect the joint power substation of Denersol's GT) – a subsidiary of state-run utility Companhia three solar power plants the 21 MW Canto del Estadual de Energia Eletrica (CEEE), will be Agua, the 7.5 MW Denersol II and the 30 MW responsible for the project’s construction works. Denersol II located in the Huasco province to Transelec’s existing Maitencillo substation located (BRL1=USD0.5) in the commune of Freirina. SEA is expected to complete the analyses of the environmental Argentinean regulator to hold hearing for 500 kV declaration by November 26, 2012. Santa Fe project Argentina's power sector regulator Ente Nacional Mexican energy regulator formulates smart grid Regulador de la Electricidad (ENRE) plans to hold a plan public hearing for a 500 kV project proposed to be implemented in the Santa Fe province. Mexico’s energy regulator Comisión Reguladora de Energía (CRE) has initiated works for the The project entails the installation of a 500 kV development of a smart grid plan as part of the line to connect Rosario Oeste and Río Coronda USD405,000 grant received from the US Trade and transformer substations. The hearing has been Development Agency to implement smart grid requested by the Comite de Administracion Del projects in the country. CRE is working in Fondo Fiduciario Para el Transporte (CAF) or consultation with energy ministry Secretaría de federal administration committee for power Energía de México (Sener) as well as state-owned transport funding. power company Comision Federal de Electricidad (CFE) for formulating the smart grid plan, which is Chilean power company submits environmental expected to attract private investment in the sector. request for 220 kV project The aim of the plan will be to reduce power Chile’s environmental evaluation service Servicio de losses, particularly distribution losses in the country Evaluación Ambiental (SEA) has received an which currently stand at 17 per cent. CFE also plans environmental request from Chilean power to transition to a distributed generation grid that company Electrica Los Andes SA to upgrade its will facilitate renewable power generation. existing 220 kV double-circuit Canutillar-Puerto Montt transmission line. CFE will be the prime funding agency for the The USD15 million upgrade entails replacing implementation of a smart grid in the country. the conductor in the stretch from the vertex V1 Line However, private players will also have in Cochamo town to the power substation in the opportunities to participate in the plan by providing town of Puerto Montt, to increase the capacity of the information and control systems and large-scale existing transmission line. The 59 km line is located energy storage equipment. At present, CRE is in the in Llanquihue province in the country’s central Los first of the six planning stages that will take 10 Lagos region, and is linked to the country's Sistema months. The energy regulator is expected to Interconectado Central (SIC) or central announce the investment figures as well as details interconnected power system. SEA is expected to on the time-frames by mid-2013.

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Venezuelan power utility to auction 400 kV line in expanding transmission network. The Northern, Bolivar Eastern and North Eastern grids tripped on July 31, less than 24 hours after the Northern grid failed and Venezuelan national power company Corporación was restored. Electrica Nacional, S.A (Corpoelec) plans to soon begin the final tender process for construction of the Angostura project to be implemented in the state of Alstom T&D India wins EUR400 million PGCIL Bolivar, estimated to cost USD600 million. The contract project which entails construction of a 400 kV Alstom T&D India, which is a wholly owned double-circuit transmission line along with five subsidiary of French equipment manufacturer substations will help overcome the power Alstom, has won a EUR400 million contract from transmission problems affecting the state and state-run PGCIL for constructing a 1,365 km long ensure stable energy supply to the Bolivar City for ultra high voltage direct current (UHVDC) 800 kV the next 20 years. transmission line from Chhattisgarh to Haryana. The line will extend from Champa in Chhattisgarh to Kurukshetra in Haryana. This is part of the 3,000 ASIA PACIFIC MW transmission line being set up by PGCIL between the two states. Qingdao Hanhe Cable wins CNY234 million SGCC As part of the contract, Alstom will deliver project valves, 32 converter transformers, gas-and air- Chinese Qingdao Hanhe Cable Company Limited insulated switchgear and substation equipment, (Hanhe Cable) has won an order from state-run communication, and supervisory control and data Chinese Transmission System Operator (TSO) State acquisition systems (SCADA). The scope of work Grid Corporation of China (SGCC) for supplying 18 includes overall project management, studies, packages of cables and wires. The entire supply design, engineering, training, manufacturing, civil contract consists of 10 electric cable packages and 8 works at site, erection, site testing and packages of conducting wires. The complete commissioning activities. In India, Alstom has contract is valued at CNY234 million. This contract supplied equipment for transmission networks in equals 6.24 per cent of Hanhe Cables’ operating Vizag (Andhra Pradesh), Chandrapur income during 2011. (Maharashtra) and Sasaram (Bihar). According to sources in Alstom’s Paris headquarters, the senior (CNY1=USD0.16) officials of the company are expecting a minimum 15 per cent surge in Indian sales due to the large PGCIL plans aerial patrolling of transmission lines pipeline of upcoming evacuation projects. Currently in India India represents 5 per cent of Alstom’s global Indian state-run Power Grid Corporation of India revenues. Limited (PGCIL) has announced plans to deploy (EUR1=USD1.25) helicopters for aerial patrolling of electric transmission lines. The move is aimed at ensuring Vietnam begins construction on 220 kV line in Bac the safety and security of power transmission lines Giang in the eventuality of natural disasters or sabotages. The plan has been in the PGCIL pipeline was over a The Vietnamese state-run Electricity of Vietnam year. The eventual go-ahead was given weeks after Group (EVN) has started construction of a 220 kV the collapse of the Northern, Eastern and North transmission line to connect with the Hiep Hoa Eastern Power grids which plunged 600 million substation in the northern province of Bac Giang. Indians into darkness. The contractors are using hot air balloons to lay the cable across the river for the 5.3 km long In PGCIL’s 2011-12 annual report, the company transmission line. This process has been used earlier stated that it possesses Emergency Restoration by the company and saved precious execution time Systems (ERS) at strategic locations for restoration during earlier projects. of collapsed transmission line towers in case of eventualities such as earthquakes, fire, cyclones, The new line will help prepare for the power landslides and sabotage. The complexities involved transmission of the 500 kV Son La-Hiep Hoa line. in operating grids are escalating, especially with Using balloons to connect high voltage networks

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enables investors to shorten construction periods results show that the project is economically and and power cut-off time and to minimise technically viable. compensation for site clearance at populous areas. National Grid is yet to decide where the The 220 kV line connecting to the Hiep Hoa interconnection will meet the domestic transmission substation will function as a transmitter for 2,400 grid. At present, it is discussing possibilities to link MW of electricity from six turbines of the Son La it either to the east coast of England or Scotland. hydropower plant to the national power grid. Statnett plans to connect the line to the Norwegian transmission system at Kvilldal in Rogaland. Afghanistan launches tenders for 220 kV transmission line The two parties are currently performing a joint seabed survey along the planned route and will now focus on obtaining the necessary regulatory Afghanistan’s state-owned power vertical Da and environmental agreements and concessions as Afghanistan Breshna Sherkat (DABS) has invited well as preparing for the procurement of some 700 international competitive bids for the design, supply km of cable and two converter stations. A key and installation of the 220 kV double-circuit milestone will be the submission of the Norwegian transmission line between the Chimtala substation Trade Concession Application to the Norwegian and Kabul Southwest substation under Tranche 2 of Ministry in the first half of 2013. The submarine the multi-tranche financing facility (MFF) Energy interconnector between the two countries will span Sector Development Investment Program funded by 700 km and comprise of two convertor stations and the Asian Development Bank (ADB). have 1,400 MW transfer capacity. Once operational, it will be the world's longest subsea power cable. The scope of work is divided into three components. The first component includes the design and supply of galvanised steel lattice towers French grid operator RTE seeks bids for 420 kV (83 sets), steel monopoles (35 sets), ACSR ZEBRA circuit breakers conductors (180 km), optical fibre ground wire The French state-run Réseau de Transport D' (OPGW) (30 km) and one lot of insulators, hardware Électricité (RTE) has invited prequalification bids and fitting accessories. The second work component for the supply, installation and commissioning of involves preliminary construction work such as circuit breakers for its 420 kV high voltage power design, detailed survey including route alignment, transmission network. The last date for submitting and profiling and plotting, RoW indication and bids is September 5, 2012. clearance, tower spotting, optimisation of tower locations, soil resistivity, etc. stretching for a 30 km Austrian TSO to invest EUR320 million to link wind route. Finally, the third component includes the farms construction of foundations for the steel lattice towers (83 sets) and steel monopoles (35 sets), and Austrian Power Grid (APG), which operates the erection of lattice and monopole towers (118 sets). entire Austrian transmission network has The last date for submitting bids is October 7, 2012. announced that it would be investing EUR320 million towards grid expansion plans up until 2015. The key idea behind investing this amount is to EUROPE enable grid connections for future Austrian wind farms like the 1,000 MW of upcoming projects in the National Grid and Statnett finalise plans for UK- Burgenland province. APG will contribute EUR240 Norway interconnector million, consisting of EUR170 million for the extension of transformer stations for wind energy in eastern Austria by 2020 and an additional EUR70 The UK grid operator National Grid and Norwegian million for the improvement of important APG grid owner Statnett plan to construct an undersea power lines. electricity transmission line between the UK and Norway. The project is estimated to entail an APG is part of the utility firm Verbund and investment of GBP1 billion. The preliminary power utility Bewag. The latter has already invested agreement, which has been drawn up, states that the EUR300 million towards developing wind energy two TSOs will have equal stakes in the project. A through its wholly owned subsidiary Austrian feasibility study has already been conducted and Windpower. Bewag's network raises EUR31 million

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on an annual basis for the renewal and maintenance Poland launches tenders for 400 kV transmission of Burgenland's power grid. In addition, the line company plans to put EUR84 million into the Polish high voltage grid operator Polskie Sieci network infrastructure by 2015 by expanding six Elektroenergetyczne Operator S.A. (PSE Operator existing substations and building another two in S.A.) has invited global competitive bids for the Andau and Zurndorf. construction of a 131 km long, 400 kV double-circuit (EUR1=USD1.25) Kozienice– Ołtarzew line. The last date for submission of bids is October 7, 2012. Austrian Power Grid awards 220 kV line works to Alstom MIDDLE EAST AND AFRICA Austria’s high voltage network developer APG has awarded a contract to Alstom’s Austrian local office Galfar Engineering wins USD24.7 million contract in for the renewal of the protection and control system Oman of the 220 kV Ernsthofen substation. The grid company had received five bids for this project, Oman-based Galfar Engineering and Contracting which involves installation and renovation services Company has won a USD24.7 million tender from for the 220 kV protection and control system. state-run Oman Electricity Transmission Company Alstom will complete the works by 2013. (OETC) for the construction of 132/33 kV Al Kamil and Al Wafi substations and a 132 kV transmission Svenska Kraftnat commissions 400 kV line in line. The contract is to be implemented over a Sweden period of 17 months.

Swedish state-run TSO Svenska Kraftnat has Spanish SEMI wind high voltage contracts in commissioned a new 400 kV transmission line in Morocco Western Sweden. The 32 km long power line between Stenkullen and Lindome has been built Sociedad Española de Montajes Industriales S.A. through the municipalities of Lerum, Härryda and (SEMI S.A.) has won two high voltage contracts Mölndal. worth USD44 million in Morocco. The first contract awarded by state-owned Le Groupe OCP, an Swedish TSO launches pre-qualification bids for exporter of phosphate rock and derivative, is for the 400 kV lines construction of 20 km of 60/225 kV overhead transmission line, and civil works and installation of Svenska Kraftnat has launched pre-qualification a 140 km, 60 kV underground cable. The value of bids for the construction and erection of a 400 kV this contract is USD25 million. The second contract, overhead power line between Hallsberg–Östansjö worth USD19 million, has been awarded by and Barkeryd (Sweden). The work comprises Morocco’s vertically integrated power utility Office manufacturing, construction and installation of new National de L’electricite (ONE). The contract is for 400 kV AC power lines, including delivery of all the construction of 225 km of transmission lines necessary materials. The total length of the line which comprises Lots 2, 3 and 4 of the 225 kV routes is 182 km. The power lines will be divided Errachidia-Tinghir II and Tinghir II-Centrale Solaire into four packages and this pre-qualification relates D’ouarzazate lines, spanning 300 km. to Packages 2, 3 and 4. The 400 kV AC overhead line will be built in the same line routes as an already Liberia and World Bank sign West Africa Power Pool existing 220 kV AC overhead line. Dismounting of Pact the existing overhead line will be included in the The Government of Liberia and the World Bank contract. The procurement contracts for Packages 2, have signed a financing agreement for the Liberia 3 and 4 will be performed as three separate West Africa Power Pool (WAPP) programme. The procurements. All interested bidders need to submit project targets Sub-Saharan countries facing extreme 3 pre-qualifications tenders to be able to participate power deficits. More specifically, the power systems in all 3 procurements/packages. in Liberia, Sierra Leone and Guinea are in The last date for interested bidders to submit considerable need of rehabilitation and expansion. pre-qualification bids is October 1, 2012. The project is intended to integrate electricity

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systems, increase electricity supply, and improve The contract is part of the larger USD397 million system reliability. The issue of electricity is a major project being implemented to improve regional problem in Liberia's economic recovery process. trade in electricity and cater to the growing demand Overall, there is a huge infrastructure deficit in the among Kenya, Uganda, Rwanda, Burundi and West African sub-region. Democratic Republic of Congo (DRC) by installing high voltage lines. The lines include the 256 km long The first project will finance infrastructure of the Uganda (Jinja)–Kenya (Lessos) line, 172 km long transmission interconnection between Ivory Coast, Uganda (Mbarara)–Rwanda (Kigali) line, 112 km Liberia, Sierra Leone, and Guinea for a length of long DRC (Ruzizi 1)–Burundi (Bujumbura) line, 150 approximately 1,349 km. The objective is to meet the km long DRC (Ruzizi1)–DRC (Goma) line, 19 km increasing demand for power effectively. The long DRC (Kiliba)–Burundi (Bujumbura) line, 200 second project will finance technical and analytical km long Rwanda (Kibuye-Gisenyi)–DRC (Goma)– studies to ensure that key hydropower projects can Rwanda (Gisenyi-Kibuye) line, and the 142 km long be developed and used to trade electricity along the Rwanda (Kigoma)–Burundi (Gitega) line. The WAPP transmission line. The grant also finances NELSAP project is one of two investment key investments needed for continuous flow of programmes under the Nile Basin Initiative (NBI). power across key WAPP "Zone B" countries, which NELSAP aims to promote investments in power include Benin Burkina Faso, Ivory Coast, Niger and development and trade, water resources Togo. management, management of lakes, fisheries and The Cote d'Ivoire-Liberia-Sierra Leone-Guinea watersheds, and agricultural trade and (CLSG interconnection) line is the mega- productivity. transmission line project, which connects Côte d'Ivoire, Liberia, Sierra Leone and Guinea, and will Infrastructure major Fedders Lloyd wins USD18.6 extend to 1,349 km. It is being co-funded by the million contract in Nigeria African Development Bank (AfDB), the European Investment Bank (EIB), Kreditanstalt fuer The infrastructure conglomerate Fedders Lloyd has Wiederaufbau (KfW), and the various national announced that it has won a contract worth governments. The second project will finance USD18.58 million from the Power Holding technical and analytical studies to ensure that key Company of Nigeria (PHCN) for re-habilitation and hydropower projects can be developed and used for reinforcement of high voltage transmission trading electricity along the CLSG transmission line. substations. The New Delhi-based company will The estimated total cost of the two projects is design, supply and install five 330/132 kV and around USD476 million. USD176 million is being 132/33 kV substations for the state-owned PHCN financed by the International Development under the Nigeria Electricity and Gas Improvement Association (IDA), which is the World Bank's fund Project. The World Bank has committed to fund 100 for the poorest countries; USD280 million is coming per cent of the project cost, estimated at USD200 from AfDB and EIB, and USD20 million from the million. four participating governments. The project aims to strengthen Nigeria’s electricity transmission system and improve service KETRACO launches tender for construction of delivery by improving efficiency and gradually Kenya-Uganda line reducing losses and subsidies. It has three Kenya Electricity Transmission Company components. The first involves risk mitigation (KETRACO) has invited international competitive through a series of Partial Risk Guarantees in bids for the design, supply, construction and support of gas supplies to increase power commissioning of Kenya’s portion of the Kenya- generation from existing public sector power plants. Uganda interconnection project. The scope of work The second component covers the enhancement of entails installing a 127 km long, 400 kV double- transmission and distribution infrastructure. This circuit line between Lessos (Kenya) and Tororo component will reinforce distribution networks to (Ugandan border) under Lot A of the Nile increase electricity supply in select cities including Equatorial Lakes Subsidiary Action Program Kano, Kaduna, Eko, Ikeja, Ibadan, Abuja, Benin, (NELSAP) funded by the AfDB. The last date for Port Harcourt, Yola, Jos and Enugu. The third submitting interested bids is September 28, 2012. component comprises technical advisory services.

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