The transformer will function as a beneficial power management device, distributing power between two or more remote locations in Alaska.

Scheduled to be installed in early 2012, the DC transformer is the first of its kind allowing for economical transmission of power over DC power lines.

PPS executive vice president Darren Hammell said reduction in the cost of power transmission is good for applications including offshore wind, hydro power generation.

"It is critical for connecting communities in places like rural Alaska that do not have easy access to a conventional electric grid" added Hammell.

In addition to the bi-directional capabilities of the transformer, it also decreases the cost of electricity by eliminating the need for small distributed diesel generators.

Princeton Power Systems CTO Mark Holveck said the HVDC Transformer is the missing link in DC transmission systems at these power levels.

"The technology we are demonstrating allows bi-directional power flow at high-efficiency so that it truly enables DC interconnections" added Holveck.