New US joint venture to fund grid modernisation
USA: US-based energy equipment provider TS Conductor has teamed up with Starwood Energy, to form a $100 M joint venture, dubbed Gridline Finance InvestCo.
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USA: US-based energy equipment provider TS Conductor has teamed up with Starwood Energy, to form a $100 M joint venture, dubbed Gridline Finance InvestCo.
Starwood Energy is a private equity investment firm specialised in energy infrastructure investments, through its general opportunity funds and affiliated investment vehicles. Through the JV, the two companies plan to finance the grid modernisation, including building new and reconductoring existing transmission lines, to advance the energy transition.
For reconductoring existing lines, Gridline Finance is expected to bring an energy performance contracting (EPC) approach, similar to energy service companies (ESCOs). TS Conductor would leverage its lightweight, high-strength encapsulated core under pre-tension, with built-in safety, reliability, and longevity. Also, the company will use its most-conductive form of aluminium, which can reduce line losses by half, to deliver superior performance and save the electricity.
“TS Conductor’s technology will be a major catalyst for increasing the penetration of renewables in North America. We are delighted to partner with this innovative team to drive the adoption of an outstanding technology,” said Starwood Energy CEO Himanshu Saxena.
The JV’s approach to transmission upgrades would benefit regional transmission operators (RTOs), independent system operators (ISOs), utilities, cooperatives, and other grid operators at no upfront cost.
In addition, Gridline Finance is expected to deliver both CAPEX and OPEX savings for the construction of new transmission lines. It will use high-capacity, low-sag wires, which require fewer poles and towers, longer spans, and total wires, reducing overall system CAPEX and OPEX.
TS Conductor said that its straightforward installation technology and procedures across both re-conducting and new construction are compatible with traditional field practice. Its encapsulated core provides superior protection against corrosion and other environmental problems, and offers long-term durability, said the company.
Source: NS Energy
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