Toshiba Corporation (TOKYO: 6502) today announced that Toshiba and Toshiba T&D Europe S.p.A. (TTDE), a subsidiary located in Genoa, Italy have won an Engineering, Procurement and Construction (EPC) contract for a High Voltage and Direct Current (HVDC) power conversion system for an undersea power transmission line between Cepagatti, Italy, and Kotor, Montenegro. The project will deliver a maximum 1,000MW of power to Cepagatti and will contribute to the integration of the Southeastern Europe and EU power grids. Toshiba will initiate construction of the project in September 2013 and start delivery of equipment in April 2015. Conversion stations along the route are expected to start operation in September 2017.

Toshiba won the contract in cooperation with TTDE, the former Ansaldo Transmissione & Distribuzione S.p.A., an Italian transmission and distribution (T&D) engineering firm that Toshiba acquired in March 2011 and renamed in March this year. TTDE is charged with promoting Toshiba’s pan-European T&D business. Both companies have strong capabilities in HVDC: Toshiba installed the world’s first frequency conversion system in 1983 and has pioneered development of HVDC technologies and systems; TTDE constructed SACOI, the world’s first HVDC multi-terminal interconnection system, linking Sardinia, Corsica and mainland Italy.

Parts of Europe suffer energy shortages, and long distance transmission systems allow them to import electricity from neighboring countries. The Cepagatti-Kotor HVDC system will extend over 400km, allowing imports from Montenegro. The HVDC contact was awarded to the Toshiba consortium after comprehensive evaluation of Toshiba’s high performance technology and TTDE’s extensive engineering experience. It will allow Toshiba Group to enter the European HVDC market ahead of other Japanese EPC contractors.

Mr. Takeshi Yokota, Vice President of Toshiba Corporation’s Social Infrastructure Systems Company welcomed the signing of the contract: "We are delighted to take the lead in such an important project in Europe, and we will draw on Toshiba Group’s rich experience to execute the project successfully. Demand for HVDC is expected to increase in Brazil. Looking to the future, we see this project as a springboard for the promotion of HVDC business in Brazil and we will drive this forward through a winning combination of rich experience and state-of-the art technologies. Toshiba is focusing on its HVDC system business in Brazil."

The company is also promoting its T&D business in the emerging economies of the Middle East and Southeast Asia, Brazil, India and Russia, all of which are expected to see demand growth. Going forward, Toshiba will expand its business globally by offering reliable, high performance equipment.