Anbaric Transmission CEO Ed Krapels mapped out on Dec. 5 a geographically diverse and opportunity-rich plan targeting undersea HVDC transmission investment around the world.
While the majority of the company’s projects are being developed in the Northeast United States, there are blossoming opportunities in Hawaii and Germany, Krapels said at TransmissionHub‘s TransForum East conference in Arlington, Va.
The company in 2007 completed Neptune, the 65-mile, 500-kV HVDC undersea project that runs between New Jersey and Long Island, N.Y.
Anbaric is constructing the Hudson transmission project, a 7-mile, 345-kV underground and undersea line connecting New York City with PJM Interconnection, which is expected to be completed ahead of schedule in 2013, Krapels said.
In the Northeast, Anbaric is developing the Green Line, West Point, Bay State, Grand Isle Intertie and Poseidon projects, while in Hawaii and New York, the company is looking to respond to requests for proposals (RFPs) for transmission.
Germany, however, could provide the richest opportunities for HVDC projects. The country has estimated it could add about 15 GW of offshore wind energy, all of which would need to be connected to load centers onshore.
“It looks like there could be 10 to 15 Neptune-style projects in Germany in the next 10 years or so,” Krapels said.
In order to participate in that buildout, Anbaric is looking for institutional investors to invest in the company.
“In Germany, I think it’s going be a new financing model,” Krapels said. “The Germans have put a 9.05% [ROE] for transmission, so we’re trying to get institutional investors, the big guys who have pension funds to direct directly invest our company so we can invest directly in the projects. I’m not sure these guys are ready for that but some of them say they are.”
Anbaric has partnered with Exelon (NYSE:EXC) on the Poseidon project, which Krapels referred to as the “son of Neptune.”
“We don’t know if the Long Island Power Authority wants a second Neptune but we hope one day it will, and when it decides it wants it, we’ll be ready to provide it,” he said. “We think Neptune works economically strategically for Long Island [and] we think a second one would do just as much.”
Like Neptune, Poseison would run from New Jersey to Long Island.
The West Point project runs 100 miles from Albany, N.Y., down the Hudson River into the Buchanan substation, the point at which the Indian Point nuclear power plant injects its energy into the New York grid.
The West Point project is Anbaric’s point of energy into the New York Energy Highway derby,” Krapels said. “Should Indian Point not be relicensed or should it decide to close, this project we think economically and efficiently closes the arbitrage gap that would open up because it is cheaper, we think, to take the surplus power that’s in northern New York and move it through DC technology into Buchanan.”
The Bay State project would collect wind energy generated from offshore farms off the coast of Massachusetts and deliver them to shore through radial lines.
The Green Line project runs from northern Maine into southern New England using underground and undersea cables.
“As far as we know it’s the most efficient way to bring the wind that is in northern Maine that can be built affordably into southern New England,” he said. “Our hope is that we can take the wind energy, firm it up with power from the Canadian provinces, and deliver into Salem where a power plant is being retired.”
Anbaric also is developing the Grand Isle Intertie, a 230-kV upgrade in northern Vermont that would facilitate the transport of wind energy from northern New York into New England.
In Hawaii, the company is looking to submit a proposal to connect the Hawaiian Islands of Lanai and Molokai with Oahu.
In New York, Anbaric is looking to capitalize on the governor’s newfound focus on electric transmission.
The West Point, Poseidon and Hawaii projects are funded, while the Green Line, Bay State and Grand Isle Intertie projects are seeking funding, Krapels said.