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

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

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