Zenergy to develop 'Smart Grid' device for Con Edison

(Reuters) - Superconductor specialist Zenergy Power said on Monday it had been contracted by Con Edison to build and test a "Smart Grid" device to improve the stability and reliability of New York City's electrical system.

The equipment, known as a Fault Current Limiter (FCL), instantly detects and absorbs spikes in power that, left unmanaged, could damage electrical equipment or trigger power outages, the company said.

The project is funded by the U.S. Department of Energy and no financial details of the deal was disclosed.

Zenergy, which makes specialized wires and coils for the renewable energy sector using superconductor technology, said it expected to deliver the prototype by the end of August.

It also expects to extend its designs to other FCLs that are customized for equipment on higher voltage lines.

Con Edison, a unit of Consolidated Edison Inc., authorized a project to design, build and test a single-phase FCL of a type that would be applicable to a number of substations within the utility's electrical system.

Smart Grid, a major national effort in the United States, is underway to develop and deploy devices to help the present infrastructure meet the country's growing energy requirements.

Zenergy shares were indicated up 2.5 pct at 123.5 pence at 0655 GMT (2:55 a.m. EDT).

(Reporting by Ramkumar in Bangalore; Editing by Gopakumar Warrier)