Siemens awarded €400 million

(PG) is to build a turnkey combined cycle power plant in Livorno-Ferraris in northern

for Milan-based E.ON Italia Produzione, a subsidiary of

. Plant commissioning is scheduled for 2007.

With a capacity of 800 megawatts (MW), the plant will be able to meet the entire electricity needs of Milan’s 1.2 million inhabitants. The value of the contract, including the simultaneously signed long-term service agreement, is approximately €400 million.

The natural gas-fired power plant will be built in Livorno Ferraris in the province of Vercelli between Turin and Milan. The plant will be the first turnkey combined cycle project that Siemens PG has implemented for E.ON.

Siemens will supply two gas turbines, one steam turbine, three generators, two heat-recovery steam generators, and the entire mechanical and electrical equipment. Advanced instrumentation and control systems supplied by Siemens will also be installed. In addition, the company will handle gas turbine maintenance for a period of up to twelve years.

Italy, the fourth largest power market within the European Union, continues to be highly dependent on energy imports. During the heat wave in the summer of 2005, power consumption in the country reached new peaks. Controlled shutdowns were required to prevent failure of the power grid due to overloading.

Since 1999, Siemens has built power plants in Italy with a combined capacity of over 3000 MW.

“In the future as well,

will remain an important power plant market,” stated Norbert König, member of the Group Executive Management of Siemens Power Generation, at yesterday’s contract signing in

. ”Many power plants require replacement. By the year 2010,

’s power generating capacity will have increased by ten gigawatts.“