The 65-mile undersea and underground transmission
link connecting Long Island with New Jersey
saved the Long Island Power Authority (LIPA)
an estimated $20 million this summer during
the first 100 days of operation, LIPA announced
today during the dedication of the Neptune
Regional Transmission Project. The Project
is expected to result in more than $1 billion
in net benefits over 20 years to LIPA and
its customers.
The Neptune project, the largest underwater
HVDC (High Voltage Direct Current) system
in the United States, gives LIPA and its
1.1 million customers access to 660 MW of
reliable, competitively priced electricity
from the 13 State PJM energy grid, one of
the most diverse power markets in the United
States.
After LIPA completed a very competitive
RFP process in 2004, Neptune began construction
of two converter stations and the 65-mile
cable in July 2005. The approximately $600
million transmission system commenced operations
in June, ahead of schedule and within budget.
More than 50 miles of the cable are buried
beneath the Raritan River, New York Harbor,
and the Atlantic Ocean, transmitting power
from Sayreville, New Jersey to Long Island,
where it comes aground near Jones Beach.
“The Neptune Project is an example of how
this type of HVDC technology can bring much-needed
electric power and transmission infrastructure
to densely populated areas in a cost-effective
and environmentally friendly way,” said
Edward M. Stern, Neptune’s President and
Chief Executive Officer. “Many American
cities that face growing demand for energy
would be well served by implementing projects
such as Neptune – and more renewable energy
projects would be built to serve such demand.”
“This historic power project has given
Long Island direct access to a lower cost,
more diversified power supply in the PJM
power market that stretches from New Jersey
to Illinois,” said LIPA CEO and President
Kevin Law. “The money saved this summer
is significant and in the long term will
help us meet our objective of holding down
the power supply charges as much as possible.”
“Of all of the new power supply resources
that have been added to LIPA’s portfolio
in recent years this is the most important,”
said Mr. Law. “It provides Long Island with
a more economic and more diverse energy
supply that will help reduce our dependence
on foreign oil over time. We’re extremely
pleased that it is operating well and producing
the kinds of economic benefits for Long
Island we anticipated.”
The Neptune cable is the first 500-kV submarine
cable link using mass impregnated, paper
insulated technology that has virtually
no impact in case of external damage. Also
the installation was performed using equipment
owned and/or engineered by Prysmian with
minimum environmental impact.
“We are very proud of the Neptune project,”
said Hans Nieman, Prysmian Director of High
Voltage and Submarine Systems, “This project,
the first 500-kV submarine cable connection
ever realized using environmentally friendly
mass impregnated paper cable, further confirms
Prysmian’s worldwide expertise in the submarine
cable sector. Prysmian utilized a state-of-the-art
technology, which enabled the project to
be completed successfully ahead of time
and in accordance with the local ecological
guidelines. The cable was in fact laid out
in an environmentally sound manner, avoiding
major fisheries and other ecologically sensitive
locations.”
A converter station in New Jersey transforms
alternating current (AC) power into direct
current (DC) power for transmission to Long
Island, while the Long Island converter
station transforms DC power back into AC
power for distribution to customers. The
power can move in both directions.
“As urban areas worldwide face critical
power shortages, LIPA and other utilities
recognize that HVDC technology is technically
advantageous over traditional AC methods
for accessing the grid, connecting to renewable
energy sources and strengthening grid reliability,’’
said Dave Pacyna, president and CEO of Siemens
Power Transmission & Distribution, Inc.
“Siemens is recognized around the globe
as the leader in providing HVDC technology
solutions for efficient, secure and reliable
grids.
Neptune Regional Transmission System, LLC
(Neptune RTS) is the developer, owner and
operator of the Neptune Project, responsible
for its planning, permitting, financing
and construction. Affiliates of Energy Investors
Funds and Starwood Energy Group are the
principal equity investors in Neptune RTS.
Siemens Power Transmission & Distribution,
Inc. provided the design, engineering, construction
and installation of the HVDC converter stations
in Sayreville, NJ, and New Cassel, N.Y.
Siemens will also provide operation and
maintenance services for the first five
years of the project’s operation. Prysmian
Cables and Systems USA, LLC manufactured
and installed the 65 miles of 50- kV undersea
and underground cable that connects the
two converter stations.
