Under the contract, Alstom will develop and supply a new software and service based on its e-terraphasorpoint technology in order to extend and integrate the existing GB wide area monitoring systems.
Office of Gas and Electricity Markets (Ofgem), GB energy regulator, has approved the Visualization of Real-time System Dynamics using Enhanced Monitoring (VISOR) project, which is led by ScottishPower Energy Networks.
The project partners also include Scottish Hydro Electric Transmission and National Grid.
The new software will enhance visibility of system voltage and stability limits across the entire national electricity network.
The VISOR project intends to enhance transmission operation through enhanced risk mitigation and boundary transfer management as well as help manage increasing complexity of the network, such as penetration of renewable generation.
ScottishPower Future Networks manager David Campbell said: "We believe that the collaboration between ScottishPower Energy Networks, Alstom-Psymetrix and the VISOR partners will deliver valuable insights and tools for improving the efficiency and security of transmission in the Great Britain system, and contribute to international experience and knowledge.
Alstom Grid Network Management Solutions vice president Karim El Naggar said: "Our on-going success with ScottishPower Energy Networks and other likeminded progressive industry players gives us the opportunity to advance innovative solutions to address the challenges of increasing renewable energy in the supply mix.
"Through this collaboration with multiple stakeholders, and our R&D investment in Wide Area Monitoring solutions, Alstom Grid will be actively contributing to the efficiency and security of future energy supply in the GB grid."