Neptune RTS, the project developer that awarded Siemens the contract, will make the electrical connection available to link New Jersey's power grid from Sayreville to a Long Island Power Authority station in North Hempstead, Long Island.
Italian-based Pirelli Energy Cables and Systems will provide the 65-mile long submarine power cable, while Siemens will engineer and supply the HVDC system.
The total contract value is more than $US400 million, with construction scheduled to begin in August 2005 and the system operational by mid-2007.
"It is critical we develop new technologies to provide more flexibility in the transmission and distribution of our nation's power supply," said Dave Pacyna, president and chief executive officer of Siemens PTD, headquartered in New York City.
"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," said Pacyna.
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 for the following five years.
HVDC technology is the most efficient way of transporting large quantities of energy over long distances. HVDC transmission systems such as the one Siemens has been commissioned to provide allow greater control, flexibility and stability, limiting the effects of disturbances such as blackouts.
"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," said Ed Stern, president of Neptune RTS.
"This partnership will demonstrate the power of innovation to meet our nation's energy needs and help lower energy costs for consumers."
In addition to enabling energy purchases from New Jersey, the Neptune system will also allow for energy purchases from suppliers in Pennsylvania and Maryland, potentially benefiting the greater New York area.
