General Electric unit GE Energy Financial Services announced today that it will auction 315 MW of bi-directional electricity transfer capacity across its Linden Variable Frequency Transformer smart grid project, which uses GE technology to enable a simple and controlled transmission path between electrical grids.
GE Energy Financial Services will hold the auction in April. It will sell 90 MW of transmission scheduling rights that will become available on June 1, 2016, and 225 MW of transmission scheduling rights that will become available on June 1, 2018.
The term length of the TSR purchase agreements can be designated by the bidder. The term length options are from two to five years for the TSR agreements starting June 1, 2016, and from one to three years for the TSR agreements starting June 1, 2018.
The TSRs can be used to sell energy and capacity sourced in PJM Interconnection, the largest centrally dispatched electric grid in the world, into the New York Independent System Operator (NYISO) and its zone serving the New York metropolitan area. Linden VFT customers also can sell capacity and energy sourced in NYISO into the PJM Interconnection.
The Linden VFT smart grid project is located at the intersection of the New York City (NYISO Zone J) and PJM power grid and is capable of transferring 315 megawatts of capacity, enough for up to 315,000 homes, between PJM and NYISO. It commenced commercial operation in late 2009 and has successfully demonstrated the flexibility to flow power in both directions between NYISO and PJM power grids.
The variable frequency transformers provide a precise control path between electrical grids, permitting power exchanges that were previously impossible because of technical constraints. They enable transmission system operators at PJM and NYISO to control power flows with high reliability, speed and efficiency, while offering flexibility in how growing energy demand is met. The reliable power flow also provides customers with more diverse and lower-cost power sources.