Clean Line officials said today that they will use the investment proceeds to help develop the company’s four high-voltage direct-current (HVDC) transmission projects.
One of these is the Plains and Eastern Clean Line, a 750-mile HVDC transmission line connecting northern Texas with markets in the mid-south/south-eastern US.
The other projects will connect onshore wind energy resources in the Upper and Lower Midwest to cities further east and from New Mexico to California.
According to Windpower Intelligence, Texas has a 2013-2020 project pipeline of more than 19GW, some distance ahead of second place Wyoming on 6.9GW. However, improved transmission from Texas to other states is crucial if these projects are to happen.
"National Grid’s participation in Clean Line will further enhance our technical, financial and development capabilities," said Michael Skelly, president of Clean Line.
A National Grid USA subsidiary will make the investment with corporate funds.
Under the terms of the transaction, UK grid operator National Grid will be able to buy a "significant" ownership stake in Clean Line’s HVDC projects.
In the US, National Grid delivers electricity to more than 3 million customers in New England and New York state and manages the electricity network on Long Island under an agreement with Long Island Power Authority.