Through their new JV company, Starwood, TS Conductor aim to finance the grid modernisation works, including building new lines and reconductoring existing lines, to advance the energy transition
Starwood, TS Conductor form Gridline Finance. (Credit: Matthew Henry on Unsplash)
US-based energy equipment and solutions provider TS Conductor has teamed up with Starwood Energy, to form a $100m 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 lines and reconductoring existing 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.
Starwood Energy CEO Himanshu Saxena said: “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.
“Furthermore, we look forward to providing access to an attractive financing model that will enable its customers to upgrade transmission networks without any upfront investment.”
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.
TS Conductor CEO Jason Huang said: “Transmission infrastructure is the next frontier of the energy transition, and the backbone of a modern power grid. As utility-scale renewables and grid-edge distributed energy resources continue growing, transmission infrastructure is the critical ‘connective tissue’ of the electricity system.
“We’re doing for the power grid what fibre optic did for Internet service, delivering massive performance upgrades, including ‘bandwidth’ expansion. We’re proud to join with Starwood Energy to bring these benefits to transmission networks throughout North America and around the world.”
According to the US Department of Energy (DOE), more than 70% of the country’s transmission lines are in excess of 25 years old.