Alstom signed a $330 million contract with Metals & Engineering Corp. (METEC) to supply turbines and generators for the hydropower plant of the Grand Renaissance dam, located on the Blue Nile in Ethiopia. The power plant will be operated by EEPCO.
Alstom will supply and supervise the installation of all electromechanical equipment for the plant, including eight 375 MW turbines and eight generators for the first phase. The contract also includes engineering and power plant commissioning.
The commissioning will start in late 2013 and take place in successive steps over a three-year-period. In line with the expectations of the Ethiopian government, Alstom will oversee a program to develop locally skills and know-how in the area of hydroelectricity.
When completed, the Grand Renaissance power plant, with a total output of 6,000 MW, will be the largest hydro project in Africa and a priority for the Ethiopian government. Once in operation, the power plant will quadruple Ethiopia's current electricity production capacity.
The country is faced with rapid increase in electricity demand at an annual rate close to 10 percent. With an estimated potential hydropower production of 35,000 MW, Ethiopia aims to become a key regional player in power generation and the leading supplier of neighboring countries.
Alstom has been active in Africa for 80 years and has numerous hydroelectric projects to its credit across the continent. In particular, Alstom has supplied Africa's main hydropower plants in Mozambique, Angola, Ghana, South Africa, Sudan and more recently in Uganda.
Two additional contracts are currently under execution by Alstom for the supply of turbines and generators for the new Ithezi-Thezi hydropower plant (120 MW) in Zambia, and the retrofit of the Inga 2A hydropower plant (712 MW) in the Democratic Republic of Congo.