Neptune Awards $200 Million Contract to Siemens and Prepares for Construction of Undersea Energy Transmission Line between New Jersey and Long Island.
RALEIGH, N.C. & NEW YORK -- Long Islanders Will Have Much Needed Access to Power from the New Jersey PJM Grid with Siemens HVDC Technology and Pirelli Energy Cables and Systems
Neptune Regional Transmission System (RTS) has awarded Siemens Power Transmission and Distribution (PTD) a contract worth more than $200 million to construct an undersea high-voltage direct-current (HVDC) transmission link between Sayreville, New Jersey and North Hempstead in Long Island, New York. Neptune RTS, the project developer, will make the electrical connection available to supply electrical energy from the New Jersey grid to cover increasing demand for power on Long Island. The project will be implemented by Siemens, who will engineer and supply the HVDC system and Milan-based Pirelli Energy Cables and Systems, which will provide the 65-mile long submarine power cable. The total contract value is in excess of $400 million. Construction will begin in August 2005 and the system will begin operation in mid-2007.
"It is critical that we develop new technologies to provide more flexibility in the transmission and distribution of our nation's power supply. This system will provide the reliable, consistent and safe transmission of power from the New Jersey PJM Grid to Long Island, a need punctuated just this week when New York saw another record peak electric demand," said Dave Pacyna, president and CEO of Siemens PTD. "Siemens and Neptune RTS have been working together with federal, state and local political and regulatory leaders whose support and vision have been paramount to ensuring the success of this project. Together with Pirelli, Siemens is proud to put its technologies to work to improve our country's energy infrastructure."
In addition to providing technological expertise, studies, and engineering services during the project development, Siemens will provide the initial operation and maintenance services for the system during a five year period.
"Neptune RTS's mission is to develop commercially viable energy solutions for the U.S. With energy demand increasing worldwide, high-voltage direct-current transmission will play an increasingly important role, especially as it becomes necessary to tap energy reserves whose sources are far away from the point of consumption," said Ed Stern, president of Neptune RTS. "We selected Siemens because of the company's experience implementing this highly complex project successfully in other cities and their ability to provide seamless, end-to-end solutions from planning and development to construction, operations and service. This partnership will demonstrate the power of innovation to meet our nation's energy needs and help lower energy costs for consumers."
