1 ALSTOM © 2010 Confidential1 ALSTOM © 2010 Confidential

GRID

Smart Grid

Jean-Michel CornilleSVP - Automation Business, Alstom Grid

22 September 2010

2 ALSTOM © 2010 Confidential

The need for a smarter grid

3 ALSTOM © 2010 Confidential

Agenda

Alstom’s leading role in Smart Grid – an example

Smart Grid: What’s in it?

Alstom’s Smart Grid development strategy

4 ALSTOM © 2010 Confidential

Improve grid reliability & stability

Maximize CO2 free energyand reduce environmental impact

Increase energy efficiency

Key market drivers for Smart Grid

5 ALSTOM © 2010 Confidential

The Grid of the 21st century: towards a two-wayflow of energy and information

… to a meshed network with two-wayflow of energy and information

From a traditionaltop-down network…

Centralized + Distributed generationCentralized generation

Prosumers

6 ALSTOM © 2010 Confidential

New technologies are needed across the value chain

Generation Grids Consumption

Generation flexibility HVDC, FACTS (Flexible AC Transmission Systems)

Digital substation

Renewable management

On-Line stability

Demand-side management

Smart metering

Home Area Network

Eco-buildings

Renewable conversion Grid connected storage Virtual Power Plant and Microgrids

Electric vehicle integration

7 ALSTOM © 2010 Confidential

Agenda

Alstom’s leading role in Smart Grid – an example

Smart Grid: What’s in it?

Alstom’s Smart Grid development strategy

8 ALSTOM © 2010 Confidential

Example: Renewable Energy Integration - Key Steps

Distributed generation

Grid connection Generation flexibility1

5

3

Grid stability6

Power quality2

Energy storage4

Alstom providing leading Smart Grid solutions for each step

9 ALSTOM © 2010 Confidential

Grid connection of renewable generation

Customer challengeGrid connection of offshore wind farms

Example: Alpha Ventus Platform, Germany

SolutionOffshore substation

1

10 ALSTOM © 2010 Confidential

Power quality improvement

Customer challengeImprove grid power quality to support onshore wind in Southwestern Minnesota

Example: Xcel Energy, USA

SolutionStatic VAr Compensation

2

11 ALSTOM © 2010 Confidential

Thermal generation flexibility

Example: GDF Cycofos, France

Customer challengeBalance generation operation against renewable intermittency

SolutionGas Plant Performance Optimizer

3

12 ALSTOM © 2010 Confidential

Flexible energy storage

Customer challengeNegative energy prices during high wind, low load conditions

SolutionVariable speed hydro pump storage plant

Example: Nant De Drance & Linthal, Hydro Pump Storage, Switzerland

4

13 ALSTOM © 2010 Confidential

Distributed generation management

Example: Energinet.dk

Denmark - 1980 Denmark - 2010

Central power plantDCHP unitWind turbine

Solutione-terra Renewable Desk integrated in Energinetcontrol center

Customer challengeManage large portfolio of intermittent and distributed generation units

YA-8

5

14 ALSTOM © 2010 Confidential

Grid stability improvement

Example: NCG, China

Customer challengePrevent transmission blackouts in the context of extreme load conditions

Solutione-terra On-line Stability integrated withNCG Energy Management System

6

15 ALSTOM © 2010 Confidential

Agenda

Alstom’s leading role in Smart Grid - an example

Smart Grid: What’s in it?

Alstom’s Smart Grid development strategy

16 ALSTOM © 2010 Confidential

Smart Grid: a driver of Grid market growth

Global market expected to grow from 16b€ to 50b€

Power Plant and Grid Segments will represent 60%

Grid growth driven by Power Electronics and Automation

Generation Grid Demand & Storage

0

5

10

15

20

25b€Global market estimate

2020

2010

Source: LEK, BCG, Alstom

17 ALSTOM © 2010 Confidential

Alstom development strategy for Smart Grid

Leverage leading positions in Power and Grid

Deliver end-to-end solutions with partners

Invest in R&D to drive innovation on strategic technologies

Make selective acquisitions (technologies, footprint)

Develop synergies across sectors through new organization

18 ALSTOM © 2010 Confidential

Alstom Power’s technologies and solutions are critical interfaces to the Smart Grid

Generation Grids Consumption

Controls and energy management for all types of Power Plants

Steam Power Plant

Nuclear Power Plant

Gas Power Plant

Hydro Power Plant

Geothermal Power PlantWind Power Plant

Virtual Power Plants

19 ALSTOM © 2010 Confidential

Alstom Grid’s technologies and solutions are at the heart of the Smart Grid

Generation Grids Consumption

Smarter equipment Smarter equipment HVDC

FACTs (Flexible AC Transmission System)

NextGen digital substations

Smarter grid managementSmarter grid management

Grid management systems

Renewable energy management

Wholesale market management

DC GridsElectric Vehicle fast chargingGrid connected batteriesWide Area Protection Systems

Demand response managementOnline asset managementVirtual power plant / Microgridmanagement

TECHNOLOGY EVOLUTION

20 ALSTOM © 2010 Confidential

Development of an ecosystem of partners to leverage Smart Grid synergies

Strategiccustomers

Software & technology

Channels to Market

Joint innovation

Portfolio completion

Integration of end-users solutions

21 ALSTOM © 2010 Confidential

Alstom supporting advanced market initiatives

USA10 Smart Grid projects submitted (DOE program), 5 awarded

EuropeFP7 Twenty project awarded (Grid Power electronics)2 Smart Grid projects submitted

Australia1 Smart city project submitted

France7 Smart Grid projects submitted220 kV pilot Digital SS at RTE

UK New digital substation withNCIT (UK Grid)

22 ALSTOM © 2010 Confidential

Virtual Power Plants and Microgrid Management

ChallengeIntegrate eco-buildings, distributed generation and electric vehicles

SolutionUrban Power / Eco Cities Management

Two demonstrators in the city of Nice, France

23 ALSTOM © 2010 Confidential

Conclusion

Alstom:

Is a leader in Power generation and electrical Grids

Is well positioned on strategic technologies for future Smart Grid development

Has a strong ambition to grow into Smart Grid market

Invests to drive innovation for Smart Grid and build a strong ecosystem of partners

Is organized to develop synergies across sectors

24 ALSTOM © 2010 Confidential24 ALSTOM © 2010 Confidential

GRID

www.grid.alstom.com