PPL (NYSE:PPL) has acquired a portion of the SOO Green HVDC Link, giving the Pennsylvania-based energy company a role in the controversial transmission project aimed at delivering wind generation from MISO to the PJM market.
Details of the deal announced Monday were limited, but PPL will partner with Direct Connect Development, a Minneapolis-based company developing the $2.5 billion project, which consists a 350-mile, 2,100-MW, 525-kV underground transmission line sited along existing Canadian Pacific rail lines and designed to deliver renewable energy from upper MISO to Illinois and the PJM grid.
SOO Green’s other owners are Copenhagen Infrastructure Partners, Siemens Energy and Jingoli Power. Construction is currently planned to begin in 2023 and take three years to complete.
“SOO Green is very pleased to welcome PPL to the SOO Green team,” said project founder Trey Ward. “As a diversified utility with deep transmission development expertise, PPL will bring unique capabilities to help advance this landmark project.”
Project officials have touted the model of using underground cables co-located with existing rights of way to avoid using eminent domain to advance the transmission route. Officials said installing underground cables will enable faster state permitting by avoiding environmental and visual impacts tied to traditional overhead transmission lines.
PPL COO Gregory Dudkin said his company wanted to “gain insight” into SOO Green’s approach to the project as it ramps up its own clean energy transition. It is “excited to lend” its own experience in transmission development on the project.
“PPL is pleased to support a project focused on transforming how major transmission line projects are built in the U.S.,” Durkin said. “SOO Green’s innovative approach aims to remove key barriers to interregional transmission line construction that will be essential to connecting more largescale renewable energy to the grid.”
Project Challenges
SOO Green has been jostling with PJM over the project, asking FERC to eliminate capacity rules that it says are blocking its project from competing in the market. (See related story, SOO Green Seeks Relief from PJM Rule on External Capacity.)
PJM stakeholders originally approved an issue charge in June 2020 to consider integrating HVDC converters as a new type of capacity resource in the RTO. (See HVDC Initiative Endorsed by PJM Stakeholders.) Work at the HVDC Senior Task Force failed to reach a consensus on the issue. (See “HVDC Senior Task Force Update,” PJM MRC/MC Briefs: March 29, 2021.)
Direct Connect filed a complaint with the commission in June, arguing that PJM’s tariff and Operating Agreement are unjust and unreasonable because the RTO requires merchant transmission facilities to complete a “profoundly delayed generation interconnection process” for studies and integration into the grid (EL21-85). (See SOO Green Seeks Participation in PJM RTEP Process.)
Karl Miller, CEO of Jingoli Power, said SOO Green is a “critical link” in the development of the grid of the future.
“We’re thrilled PPL has recognized the project’s revolutionary model to ease constraints for other regional wind and solar developments that will help make the U.S.’ ambitious clean energy goals possible,” Miller said. “We’re eager to get to work with our new partners.”