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Press release

Fortum and ABB to start R&D cooperation in smart grids

13 November 2009, 08:39 EET

Fortum Corporation Press release 13 November 2009

Fortum and ABB to start R&D cooperation in smart grids                          

Fortum and ABB start a joint development project to design and install Europe's 
first large-scale urban smart electricity grid in a new district in the city of 
Stockholm. Smart grids have an important role in building a low carbon society. 

The R&D project will test the concept of a flexible, low-emission power network 
in the new Stockholm Royal Seaport area. A smart grid is a prerequisite for the 
efficient utilisation of a distributed energy system, energy storage and        
charging infrastructure for electric cars. Furthermore, a smart electricity grid
is an important part of ensuring that the urban district's various actors are   
able to live up to their environmental targets.                                 

“The ambitious environmental targets for the district and Sweden's national     
targets of increasing the production from renewable energy sources with 25 TWh  
by 2020 make micro production and smart electricity grids important components  
in the effort to reduce CO2 emissions. This R&D project enables us to further   
test new technologies on a large scale and to receive direct feedback from the  
district's residents”, says Per Langer from Fortum, country responsible for     
Sweden.
                                                                         
Fortum and ABB want the project to enhance public awareness of energy efficient 
housing, local renewable electricity production, smart electricity grid design, 
energy storage and the need to adjust regulation and create new market          
prerequisites. During the project, latest solutions in the field of             
environmental and system technology can be tested and applied in the new        
district. It will also serve as a showroom.                                     

“I see Stockholm Royal Seaport as an important step in our efforts to find      
common solutions for cities to achieve environmental targets. We can now develop
and test new technical solutions for the electricity grids of the future in an  
authentic environment”, says Sten Jakobsson, CEO of ABB in Sweden.              

Fortum and ABB will develop a variety of solutions to ensure that excess power  
generated from renewable energy sources in the district itself (from sources    
such as rooftop solar panels) can be fed into the power grid; to enable electric
vehicles to draw electricity from the grid or feed it back in; to store energy; 
and to provide more flexibility and transparency in the distribution grid,      
helping to lower consumption and emissions.                                     

During the next ten years, Stockholm Royal Seaport will be constructed into a   
modern, innovative and ecologically sustainable district with housing for 10,000
families and 30,000 office spaces. Energy efficient transportation, sustainable 
energy use and waste recycling are key environmental focus areas in the planning
process. The district's objective is that yearly CO2 emissions will decrease to 
1.5 tonnes per person by 2020 from today's average of 4 tonnes in Stockholm and 
for the district to be free from fossil fuels by 2030. Building is planned to   
commence in 2010 and the housing ready for occupancy in 2011.                   

Additionally, Fortum and ABB are involved in Finland in CLEEN Oy's research     
programme Smart Grids and Energy Market.                                        

Fortum Corporation                                                              
Corporate Communications                                                        

Further information:                                                            
Agneta Molinder, Manager, Communications, Fortum Sweden,                        
+46 70 34 45332