The Neptune Regional Transmission System has awarded Siemens Power Transmission and Distribution a contract to develop an HVDC interconnector between Long Island power utility, Long Island Power Authority (LIPA) and New Jersey’s PJM Grid.

The contract will connect Sayreville in New Jersey with North Hempstead in Long Island. Siemens will engineer and supply the HVDC system and Pirelli Energy Cables and Systems will provide the 65 mile (100 km) long submarine power cable.

Construction is due to begin in August and the system is expected begin operation in mid-2007 under the terms of the contract valued at more than €350 million of which Siemens’ share is €180 million.

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.