PPL Corporation Acquires Ownership Interest in SOO Green HVDC Link Transmission Project

Rhea-AI Summary

PPL Corporation has acquired an ownership stake in the SOO Green HVDC Link project, an underground transmission line designed to transport 2,100 MW of renewable energy from the upper Midwest to eastern markets. This $2.5 billion initiative, set to begin construction in 2023, utilizes advanced technology to enhance grid reliability without costs to ratepayers. The collaboration aims to support the development of a national clean energy grid by addressing barriers to interregional transmission. PPL's expertise is expected to drive the project's success in meeting U.S. renewable energy goals.

Positive

• Acquisition of ownership in the SOO Green project positions PPL to enhance its renewable energy portfolio.
• The project will deliver 2,100 MW of renewable energy, contributing to sustainability goals.
• Utilizes innovative underground transmission technology, reducing environmental impact and permitting challenges.
• Privately financed, thus imposing no costs on ratepayers.

Negative

• The $2.5 billion project may require significant capital and resources, presenting financial risks.
• Integration of new technologies and collaboration with multiple partners could lead to management complexities.

MINNEAPOLIS and ALLENTOWN, Pa., Sept. 27, 2021 /PRNewswire/ -- SOO Green HVDC Link (SOO Green) is pleased to announce that PPL Corporation has acquired an ownership interest in the SOO Green project.

SOO Green is a first of its kind underground HVDC transmission line located primarily along Canadian Pacific rail that will connect the MISO and PJM regional energy markets, enabling the delivery of 2,100 MW of renewable energy from the upper Midwest to eastern markets. The innovative 350-mile project will use state-of-the-art 525KV class underground cable and Siemens' modern Voltage Sourced Converter technology. Construction is expected to commence in 2023 and is expected to take three years to complete. 

"SOO Green is very pleased to welcome PPL to the SOO Green team," said Trey Ward, founder of the SOO Green project. "As a diversified utility with deep transmission development expertise, PPL will bring unique capabilities to help advance this landmark project."  

As the first link in a national clean energy grid, SOO Green's innovative underground rail co-location development model can be replicated to accelerate decarbonization and enhance grid reliability and resilience. Installing transmission cables safely underground within railroad rights-of-way protects landowners by avoiding using eminent domain to secure the project route. In addition, installing cables underground enables faster permitting by avoiding environmental and visual impacts associated with traditional overhead transmission lines. The privately financed, $2.5 billion SOO Green project imposes no costs on ratepayers, avoiding the lengthy and complex cost allocation process.

"PPL is pleased to support a project focused on transforming how major transmission line projects are built in the U.S.," said Gregory N. Dudkin, executive vice president and chief operating officer for PPL Corporation. "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. As PPL seeks to advance a clean energy transition, we look forward to gaining insight from SOO Green's innovative approach, and we are excited to lend our capabilities to support the project's success."

"SOO Green is a critical link in building the clean energy grid of the future," said Karl Miller, CEO of Jingoli Power, a co-sponsor and the project's general contractor. "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.'s ambitious clean energy goals possible. We're eager to get to work with our new partners."

About SOO Green HVDC Link, LLC: Owned by investment funds managed by Copenhagen Infrastructure Partners, Siemens Energy, Jingoli Power, and PPL Corporation, the SOO Green HVDC Link is being developed by Minneapolis-based Direct Connect Development Company, LLC.  For more information, visit www.soogreenrr.com. 

About PPL Corporation: PPL Corporation (NYSE: PPL), based in Allentown, Pennsylvania, is a leading U.S. energy company focused on providing electricity and natural gas safely, reliably and affordably to more than 2.5 million customers in the U.S. PPL's high-performing, award-winning utilities are addressing energy challenges head-on by building smarter, more resilient and more dynamic power grids and advancing sustainable energy solutions. For more information, visit www.pplweb.com.

Media Contact:
Sarah Lukan
Phone: 515.707.7002
Email: slukan@ls2group.com

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SOURCE SOO Green HVDC Link

FAQ

What is the SOO Green HVDC Link project and its importance for PPL (PPL)?

The SOO Green HVDC Link is an underground transmission project carrying 2,100 MW of renewable energy from the upper Midwest to eastern markets, aimed at enhancing grid reliability and supporting national clean energy goals.

What are the financial implications of PPL's acquisition in the SOO Green project?

The $2.5 billion project is privately financed, avoiding costs to ratepayers, although it may require significant capital investment from PPL.

When will construction of the SOO Green project commence?

Construction is set to begin in 2023 and is expected to take three years to complete.

How does the SOO Green project contribute to renewable energy initiatives?

The project is designed to facilitate the transmission of large-scale renewable energy, addressing barriers in interregional energy transfer, which is vital for achieving U.S. clean energy goals.